I had a 25 sow farrow-to-finish operation until 1988, when I believed the cost of production was at its worst. When our barley didn't go malt, the best way to maximize profit was to feed it to the hogs.
2008 prices for slaughter hogs is around $.50/lb and now they all have to be trucked to Brandon Manitoba for slaughter. When I got out the price was $.73/lb and I hauled them 120 miles to Saskatoon. I am positive that the producers that are left in the industry are as efficient as they can be. You wouldn't know the price at the farm gate was as low as it is compared to the price at the supermarket. There seems to be no correlation between supply and demand either. Same with cereal grains, I had a pretty good giggle when the price of corn flakes came up. A better laugh is what a bushel of malt barley generates for the breweries. Another unknown statistic is that a bushel of wheat will yield 60 standard loaves of bread. We bought bread yesterday and a 2lb loaf of bread cost $2.79. A bushel of milling wheat is selling today at $5.51/bushel (60lbs) and there is a possibility of a final payment of a $3.09/bu payment. Its not hard to see that the guy taking all the risks isn't reaping the rewards, KINDA like tree work EH?
