Jim Long Pork Commentary, Some Observations for the Future, January 9th 2018

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Jim Long, President and CEO Genesus Genetics

Some Observations for the Future

 

France and United Kingdom have announced that internal combustion engines will be illegal in 2035. A person I met with, pondered the following thought.

Premise “if internal combustion engine losses its presence who and what is going to use ethanol”.

 

Currently, the US livestock and poultry industry use about 5 billion bushels of corn. US Corn ethanol production consumes about 5 billion bushels. Ethanol is not used in anything but vehicles, expect that global push to electric hybrid engines will include North America.

If corn ethanol decreases, will there be more livestock-poultry production? What will it do to corn prices? Land value? To us all interesting thoughts.

Gene Edited

 

We still wonder if Gene edited (GMO) in swine will be accepted by consumers. We wonder with continued pressure on antibiotics, nutrition, pay-lean, organic, and housing for swine, can we really expect consumers to embrace the Gene-Edited Pork (GMO). We wonder if the NPPC and or National Pork Board could not survey consumers, packers, retailers, processors and importers on there thoughts on this subject.

As an industry going down the wrong rabbit hole, could be devastating for our profitability and public perception.

(When in a grocery store, look at the organic products for sale. Is this a good sign for future GMO pork?)

 

USDA Voluntary Pork Grade System

USDA comment period is over. Several dozen organizations have commented. Some for, some against. Who knows for sure what will happen? The only thing for sure, the new proposed grade system is already changing the market. The target will shift from lean-lean to identifying pork that has more marbling and red meat with better eating attributes. The days of the other white meat are numbered.

Choice

Had a contact from a Global Search Firm looking for a CEO for the US subsidiary of Choice Genetics. Not sure why they would ask us? Our reply:

“Be captain of Titanic? God help the poor soul on this job”

Markets

 

US June’s lean hog futures hit 84.975 ¢ / lb last week, life of contract highs. We expect to see the June-July lean hogs to reach over 90¢ when the hogs go to market.

 

Preliminary reports on US pork exports for November, show exports up 3,28%. Year to date 6.49%

The US hog market is optimistic, and exports moving up is part of this optimism.

 

Jim Long Pork Commentary

 

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