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 - Starting a New Business Chapter
Entry into hog and pig farming is moderate 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. However, 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