Industry Analysis & Industry Trends
This little pig stayed home
High oil and feed prices and internal and external competition have been hampering the industry over the past five years. Unfortunately, even with economic recovery on the horizon, the industry will continue to decline. Corn's strong ties to oil and the volatility that can arise from such a link will continue to keep industry firms chasing profit instead of making it. Also, competition from other meat sources in light of perceived health issues will hinder pork's popularity... purchase to read more
Industry Report - Starting a New Business Chapter
Entry into hog and pig farming is moderately easy for newcomers. Generally, all inputs are readily available, producers can usually shift between agricultural activities with ease, and there are often a number of farms for sale. Nonetheless, three significant obstacles exist: regulations governing the industry, the purchase costs of capital equipment and feed, and the difficulty in securing contracts with downstream processors.
First, the costs associated with the establishment of a pig and hog farm may prohibit new entrants. Firms need to purchase industry-specific equipment such as climate- and light-controlled housing facilities and automatic feeding systems. Often, these assets represent sunk costs because the market for second-hand equipment is small... purchase to read more