M5.5: Economics of Swine Production: ANSC 100 Summer 2018 (WC).pdf

Now look again at the graph production has been

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Now, look again at the graph. Production has been steadily increasing since 2000. And even prices have been trending up since about 2009.
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6/24/18, 6)29 PM M5.5: Economics of Swine Production: ANSC 100 Summer 2018 (WC) Page 3 of 4 Exports The reason both hog production and price have both been trending up has to do with increased pork exports. Exports have become a huge part of the hog market. In fact agricultural exports are a very important component of our balance of trade. Though the overall balance of trade is negative (the cost of our imports exceeds the income from our exports), it would be much, much worse were it not for all the agricultural products that we export. Currently we export about 25% of our pork production – that percentage has been on a slow but steady increase since 1995. And because we export a lot of pork, it helps explain how we can increase production and still get higher prices for our hogs. Recent economic challenges in the swine industry Now back to the challenge of making money in the pig business. In 2007, the price of corn took a sudden jump. That meant hog producers started to lose a lot of money. In 2008, the price of corn was approaching $9 a bushel. Remember we said that in 1976 hog prices hit the high $60’s? Well way back then, the price of corn was less than $3.00 a bushel. So, pork producers had a strong income potential. So if we look at the high corn and oil prices of 2008, it’s easy to understand why it was a disaster for the hog industry. In fact, from October 2007 through June 2009, the hog industry lost $4.75 billion in equity.
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  • Spring '17
  • Robert mikesell
  • Test Prep, Net Income, Pork, Wild boar, Domestic pig, Suidae

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