Higher Pork Prices Ahead

I don't know if the news in The Big City has been reporting this, but we are coming up on the one year anniversary of the first reported case of Porcine epidemic diarrhea virus (PEDv) in the US. It has been devastating, and it's reached the point that it has noticeably affected the market.

I found this article, it's a pretty basic overview: PEDv

If you Google pedv you can find more technical data, but if you aren't very familiar with hogs and markets, it's going to seem like it's written in a foreign language.

Anyhow, since it takes about 5 months for a pig to reach market weight, and the price is already up 25%, and the disease is still spreading and killing more pigs daily, it's going to continue to get worse. There are a few packing plants shutting down production one day a week, instead of bidding up the price of market hogs. They are afraid they'll get the price so high, nobody will buy the meat.

I'll be spending my day tomorrow, calling at least 20 customers to let them know the freezer pigs they ordered will be higher priced than what I told them. I found out yesterday, my cost for feeder pigs went from $65/head last fall to $90/head for this next batch. I'll give everybody the chance to change their mind, before I put the pigs in the barn.

I'm really feeling uncomfortable going into this batch. This time of year, there is no telling if we are looking at a drought or a wet year. If the corn price skyrockets for some reason, these are going to be some expensive hogs, hanging on the rail. I need to polish up my people skills.

Just wanted to let everybody know what's going on out here in the wide open spaces. If you have a freezer, it might be a good time to look into buying a half or whole pig......... the price won't be going down in the near future.

Tim

I just hope like hell Porcine Epidemic Diarrhea Virus never makes the leap to humans because that sounds like something you really don't want.