Industry Analysis & Industry Trends
Over the past five years, the Hog and Pig Farming industry has worked itself out of a dirty corner. The industry grew strongly as demand for pork products resurged, evidenced by double-digit growth in processed meat exports and higher prices for farmers. As demand for pork remains steady and the price of feed decreases, the industry is expected to continue growing during the next five years. Moderate feed prices will allow hog and pig farms to reduce their operating costs, earn higher profit margins and subsequently continue expanding their operations. Additionally, the price of red meat, which includes pork, is expected to remain at historic highs through 2020. With some products, high prices tend to decrease demand... purchase to read more
Industry Report - Industry Investment Chapter
Pig and hog farming has developed into a highly automated production process. Feeding, watering and waste removal are carried out with minimal labor input. Moreover, the dramatic shift from small-scale production toward vertically integrated factory farms or large, single-phase specialized farms has further raised the overall level of industry automation in the past five years, increasing the industry's capital intensity level.
Compared to the rest of the farming sector, hog and pig farming is highly capital intensive, although the labor-to-capital ratio does vary among hog and pig producers. For every dollar spent on labor, the industry spends about $1.58 on capital... purchase to read more