Jim Long Pork Commentary, Global Mega Producers List 201, June 11th 2019

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Jim Long, President and CEO Genesus Genetics

 

Last week the 2019 Global Mega Producers List was announced during a virtual conference done by National Hog Farmer. Genesus is the founding sponsor of the Global Mega Producer Program.

We have been asked why the Global Mega Producer Program? Good question.

There are several Reasons:

First as we travel the world, we realize that the industry is for the most part regionalized. Very few companies and/or Global Mega Producers do business in more than one country. We have visited and done business with many of the Global Mega Producers and we found it interesting that many didn’t know much about the world industry or each other outside their area or country. Maybe that isn’t surprising as they are focused on their own business.

To us at Genesus we think it is relevant to highlight Global developments whether it’s in our weekly Pork Commentary, Genesus Global Market Report, and our sponsorship of Global Mega Producer.

There is not many of us in our industry anywhere in the world not affected by the factors of the Global Pork Trade and Global Supply and Demand etc.

The Global Mega Producer List of 2019 represents in aggregate about 10-15% of the world’s swine production. There are many different production models. Some of the company’s own all their infrastructure and pigs. Others are almost all contracted production with ownership of pigs but not infrastructure. Some are management companies that own few if any of the pigs or infrastructure. Lots of different models. The only thing in common is each model with the right management has been able to grow.

Also, last but not least, another major reason for Genesus participation; Genesus has over the last decade been able to become one of the major Global Genetic Companies. A number of the Global Mega Producers are our customers and also our prospects. Talking to customers and prospects about their success is never a bad thing.

Genesus decided when we were quite small as a regional company in Western Canada, that we would as a private company focus on making the best genetics and getting them sold. We would only be a swine genetic company, we would not be a feed company, commercial swine producer, cattle breeder, chicken breeder and never be a co-op. Our risk mitigation would be different markets in different countries. We realized that we had to have large sale base to sustain the cost of genetic development.

We also saw that Duroc-Yorkshire-Landrace registered purebreds were the best breeds to maximize profitability of the producer and the best eating experience of the consumer. We also got the benefits of putting all our genetic costs and improvements in three breeds and not having our resources diluted by multiple breeds. We didn’t want to be the General Motors of Swine Genetics (i.e. biggest Swine Genetic Company in the world).

Today Genesus Nucleus have the world’s largest registered purebred population, and we do business in most Swine countries around the world. Just recently we added India and Nigeria as countries we have supplied Genetics.

Last point. All producers whether big or small have access to all swine product technology. Whether Genetics, nutrition, vaccines, equipment etc. there is little technology that isn’t universally available.

At Genesus because we are totally focused on swine genetics (i.e. we have no back up plan), each and every customer is important.

Just as we have risk mitigation by being in different global markets, we also have a risk mitigation strategy by having lots of individual customers. Each and every customer is important no matter what the size.

Below is the summary of Mega Producers List for 2019:

Silver lining

Every year for the last thirty or so, we have spent the first full week of June at the World Pork Expo. This year World Pork Expo was cancelled in fear that African Swine Fever (ASF) might be carried in by a few hundred people visiting from China-Viet Nam.

The Silver Lining; Spencer Long is one of my sons. He has travelled to many countries over the last few years visiting swine producers. Three months ago he realized that his graduation convocation from Queens University was June 6th which would be during the World Pork Expo. Without discussing it with me he told his mother that he wasn’t going to his graduation ceremony, he was going to the World Pork Expo as it was more important and interesting. My wife Sarah was not overly happy: My thought- Spencer was my son.

When the World Pork Expo was cancelled, I wouldn’t say Sarah was ecstatic but let’s just say she was happy as now we could all go to Spencer’s Graduation.

On June 6th we were there at Queens, not Des Moines. I am glad to have been able to be at his graduation, it was a special day.

A milestone for Spencer and our family. It was the Silver Lining!

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Jim Long Pork Commentary

www.genesus.com

 

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