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 - Industry Investment Chapter
Pig and hog farming 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 is raising the overall level of industry automation.
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 $0.63 on capital. Large operations like Smithfield Farms automate processes wherever possible, investing heavily in technology and equipment that simultaneously reduces labor requirements while raising depreciation costs... purchase to read more