That s a major shift in a few years. Tight margins and a competitive retail sector have spawned this change. As they strive to satisfy retailers, packers are adopting contracting programs that tie specific breeding stock supplies to a variety of consumer demands. The market is moving in two broad directions. The commodity market increasingly relies on lean pork, which is processed to improve palatability.
Pork requires a certain amount of marbling to remain tender after cooking.
Babcock is positioned to satisfy these two broad markets and others. For instance, we supply genetics to Japanese customers that produce pork with five percent Intramuscular fat. Upscale U.S. markets are demanding a similar product. Such marbling levels would prompt hefty penalties at most U.S. packing plants. Currently, processors sort extensively to satisfy customers.