Pork Commentary, Feb 05, 2018
Jim Long, President-CEO, Genesus Inc
Where we at? Where are we going?
This past week, a year ago, US 53-54% lean hogs were averaging 69¢ lb; this year, this past week 73¢ lb – 4¢ higher, or about $8 per head to the good.
A year ago, U.S. cash 40lb feeder pig were averaging $72; this week, this year they are averaging $ 88 – a difference of $16
The US marketed 2,438,000 this week. Year to date 11,707,000 last year 11,499,000 – a difference of 204,000 head or 1.8%
This year, last week the Average Market Hog weighed 285.5 lbs (Iowa-S Minnesota); last year, same week, 282.1 lbs – A significant difference of 3.4 lbs
Our observation is that stronger prices for market hogs and feeder pigs, despite increased production, is a true reflection of good demand
Global Swine Inventory
Below is a chart showing Global Swine Inventories from the USDA. Of note; total inventory is estimated to be -1.8% then the previous year. Less is not more!
Global Pork Production
The world chart below shows, estimated world pork production by the USDA – an increase of 1.8% in total production. The worlds human population increases 1.1% per year (83 million people). Population increase, coupled with greater pork demand, is helping to keep most markets profitable around the world
This week will attend the AMVECAJ Pork Congress, held in Tepatitlán, Mexico. We will be speaking and will file our observations on the Mexican Industry in next weeks commentary
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Get acquainted with the Global Mega Producer
Program sponsored by Genesus Inc. in collaboration with National Hog Farmer
Twenty-seven pork producers, with each managing over 100,000 sows, can claim the title of Global Mega Producers for 2017. The Mega Global Producers are as diverse as their geographic location.
Get acquainted with COFCO that was originally founded as a state-owned grain and oil trader in 1949. The company advanced as the leader in grain and oil products in China creating a wholly new business model to build a fully integrated value chain from farmland to table
Now COFCO has total assets of $86.97 billion US, an annual revenue of $70.21 billion US, total annual turnover of 150 million tons, a global storage capacity of 31 million tons, an annual processing capacity of 90 million tons, and an annual port transit capacity of 65 million tons
The manage 47 hog farms located across China, and over 200,000 sows.
Congratulations COFCO Group!
From left to right:
Hu Song – CSEA China Representative
Mike Van Schepdael – Vice President, Genesus Inc.
Mr. Xu Jianong – General Manager of COFCO Meat Investment Co., Ltd.
Mr. Li Zhi Li – Deputy General Manager, COFCO Meat Division
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