Bob Fraser – Sales & Service, Genesus Ontario
From November 30, 2020 – Bob Hunsberger, Wallenstein Feeds, Hog Economics Summary Sheet showed profitability per pig with average production loss of (-$15.45). Then with the next twelve-month projection moving of $5.39. Not wonderful but at least positive numbers.
Now from January 22, 2021- Bob Hunsberger, Wallenstein Feeds, Hog Economics Summary Sheet showed profitability (loss) per pig with average production more than doubling to (-$39.27). Then with the next twelve-month projection moving also to a loss of (-$4.24).
Ontario 100% Formula Price eroded from $158.14 to $149.45 but it was Total Feed Cost – farm mixed farrow to finish – Ave Prod’n moving from $139.13 to $153.12 that really crunched margins. Coming from corn moving from $221/tonne to $259/tonne and soybean meal moving from $628/tonne to $660/tonne in the course of eight weeks.
If in fact, we’re in a “commodity supercycle” we need it to come stronger to pork because right now grains are outrunning it.