All this high production has led to oversupply and low market prices. Every one of the 50 Pork Powerhouses feels the pinch in one way or another, although a company like Hanor feels it less than some. Cheap feed is the only thing keeping some of the weaker operations afloat this fall. Some farms do not produce at this level, and they may be the first to go out of business with the current market situation. The nation's largest producer, Murphy Family Farms, is holding tight at 337,000 sows, with no immediate plans to do anything except build a few more finishing units and tighten costs.
Cost of production is the only thing that matters.
Anytime we can save half a cent per pound, we'll start work on it today. We are not putting new sow farms down. With the oversupply of meat, that's the sane thing to do. There have been volume reductions in turkeys, and we need this in pigs. We are trying to pull the reins in with our company.