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| I was reading in one of the hog industry magazines about the new rules and for the most part I don't think anyone should have a big problem with any of it. It seems to just define a few things better so if there is a problem there is a process to follow. However, the article went on to say that smaller producers could be getting 10 cents/lb less than a larger producer and I'm wondering why that would be.
Generally packers set themselves up to be as efficient as possible (not everyone wants to work in meat packing and not every location wants a packer, etc). I supposed if you showed up in your pickup with 2 pigs and the packer had to take more time to unload the pigs there could be a discount, but once the pig is delivered it doesn't matter where it's from if it meets the specs. They gave the example of the 150 sow farrow to finish producer possibly falling into this situation. In general I'd think if any size producer wants to ship to a big packer it needs to be a semi load and if the loads could be somewhat regularily timed (or at least scheduled in advance with the packer - I think they have to be anyway). I can't see where the packer would have any reason to discount the smaller producer. Is there something I'm missing - is it just 'good ol boy' club stuff - if so it needs to be corrected.
Interestingly, I'm pretty sure the smaller producer that feeds his own grain has done better than any of the larger places that have to buy high priced grain. Still that's no reason for any discount. The smaller producer should be trying to grow the pig the packer (and ultimately the consumer) wants, just like everybody else regardless of operation size.
Does anyone know that this happens for a fact (not heresay)?
thanks,
Pat
PS: I don't want to get into a debate on farm size. My personal opinion is that there are fewer and fewer guys that want to be farrow to finish in any volume (more than 10 sows). Many of these guys either run their operations until they retire since often kids (or other likely takeover candidates) are less than interested in keeping it going. Or, some become integrators so guys like me don't have to go through the long process of building a business - you have to hit the floor running, but it works. There is no reason that a smaller operation can be started from scratch, but I just don't think there many folks wanting to do it. After 9 years I might feel more like it's an option, but when I started finishing it's about all I was ready (if that) to handle. I guess I'm saying there are fewer vision guys with the sows and likely more folks willing to jump in if it's limited in some way (ie. only finishing, just boars, etc) | |
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New rules from USDA regarding livestock act
