SASKATOON – Smaller pork producers don’t have to be pushed aside by larger hog operations, said a University of Minnesota economist.
“Smaller operators can compete in the new future,” Brian Buhr told the Pork Industry Symposium in Saskatoon.
Smaller hog operators can “gang up” to get the same advantages as the larger producers, said Buhr.
In the United States and Canada, there is a growing trend to larger hog operations with thousands of sows. By specializing, these large operators negotiate cheaper feed, have access to improved genetics and demand premium prices from packers for a uniform product.
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With higher feed costs and lower hog prices, it’s just as important for smaller producers to keep costs low, he said.
The key may be multiple-site production. Producers and their neighbors must get together to specialize. One producer can operate a farrowing barn, another can manage the growing operation and a third can finish the hogs.
Pool resources
It’s the same thing with finance. Four or five producers can pool their resources, Buhr suggested.
“It’s real important for small producers,” he said.
University of Minnesota associate professor Bob Morrison agrees. Some producers may not like the loss of freedom of having to specialize, but it may be their only chance of survival against the larger companies.
“Maybe you can’t afford to do the whole thing if you’re not good at the whole thing,” he said.
Saskatchewan producers are better situated than many midwest American producers because they have quickly adopted new genetics.
