Lowest Price Common Denominator.....Family Farmers
faye frerichs 12/03/2012 @ 9:48pm
Vertical Integrators, Smithfield and others, should simply raise the price of live hogs to offset the higher input costs of corn and soybean meal. An effort by the NPPC and others to try to lower the price of corn for corn producers seems to be misguided. Trying to reduce prices for all farmers to the lowest common denominator is the wrong solution for all pork producers, even the vertical integrators that can charge whatever they want for their processed pork. Instead, why not raise prices received by all pork producers to compensate for the higher corn prices? Bringing pork producers to a profitable level along with corn farmers would have a minimal impact on the consumer while having a positive economic boost for all of agriculture. Most independent pork producers are also corn and soybean growers. They have known for years that cheap corn leads to cheap hogs. In other words, prices for grain farmers and livestock producers will be reduced to the lowest common denominator. This is no longer acceptable and should not be condoned. Family farmers deserve better.
Re: Re: Lowest Price Common Denominator.....Family Far
Harold Smith 04/22/2013 @ 12:04pm
This comment makes no sense. Pork producers are price takers, even the big integrators are ultimately price takers because ultimately there are only a handful of packer "customers". Hog producers, even the big ones can't just raise their prices at will. And by the way, its not the pork produers responsibility to ensure high crop prices for you grain farmers. The market will decide that. Corn ethanol has been a disaster for livestock producers and I think they have every right to criticize the grain lobby for using government policy to create an unfair playing field. Personally, I think the RFS should be revoked and we should outlaw the production of fuel from food. That would go a long way toward restoring health to the greater livestock industry.
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