There is nothing complicated about the explanation for the latest dip, Cady said. After being as low as 10 cents per pound in late 1998, the price of pork has flirted with the 40-cent level in recent weeks. But Philippi said some people couldn't or wouldn't wait that long. And I think that's why you saw so many operations get out is that they lost equity. Much of the pain inflicted on smaller producers has come from contracts that bigger producers can get from meatpackers for delivering hogs regularly by semi-tractor trailer truck rather than by pickup truck.
Volume often means a better price.
It means they can deliver their hogs at ideal market weight even as smaller producers are being told to call back later. Janzen has no interest in trying to compete in that climate. We sold all our assets because, with the big boys controlling everything, there's no rhyme or reason to the market cycle anymore. Cady and Philippi see some cause for hope. I'm hearing of people filling their buildings back up.