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National Hog Farmer Weekly Preview
June 21, 2010
In this issue:
  Some New Thoughts on Pork Demand
  Pork producers Feeling More Upbeat
  Aggressive Livestock Marketing Rulemaking Announced
  Hong Kong Discovers Variant H1N1 Flu Virus

Some New Thoughts on Pork Demand
Economic theory tells us that a consumer looks at his or her utility function (a relationship that says “consuming X, Y and Z quantities of goods that A, B and C provides me with various units of utility or satisfaction to choose the given bundle of goods that maximizes total utility subject to his or her budget constraint. In so doing, the consumer chooses amounts of each good that he/she will consume at the prices offered, since the prices and quantities of all goods determine just how far the budget will go.

Quantities consumed vary as prices vary, thus establishing each consumer’s demand function for each good. The demand function tells us how much of the product the consumer will buy at each alternative price. Add up the quantity of each good consumed by each consumer at each price and you have a “market demand” function for the good in question. At each price, firms provide the quantity of goods demanded by consumers.


Pork producers Feeling More Upbeat
In the last two weeks, I attended the World Pork Expo, coordinated by the National Pork Producers Council, and the Pork Financial Conference, sponsored by the National Pork Board. What a difference a year makes. Producers and most everyone involved in the pork industry have smiles on their faces – put there by profits most haven’t seen for quite a long time. May was the best month that we have seen for profits in almost three years. From a lenders' perspective, operating loan balances are coming down and producers are finally getting an opportunity to help get some improvement in their working capital. We have a ways to go to get balance sheets back to where they were, but we are heading in the right direction.

Capital Availability – I have had an opportunity to speak to a couple of pork producer groups this past month regarding capital availability. I reviewed some items that lenders are looking for as they review producer portfolios. Following are a few items that I would like to point out:


Aggressive Livestock Marketing Rulemaking Announced
USDA announced that on June 22, 2010, the USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) will publish a proposed rule, as required by the 2008 farm bill and through existing authority under the Packers and Stockyards Act, that would provide significant new protections for producers against unfair, fraudulent or retaliatory practices. Secretary of Agriculture Tom Vilsack said this will be the “most aggressive rulemaking” since the Packers and Stockyards Act was established in 1921. Vilsack said, “Concerns about a lack of fairness and commonsense treatment for livestock and poultry producers have gone unaddressed far too long. This proposed rule will help ensure a level playing field for producers by providing additional protections against unfair practices and addressing new market conditions not covered by existing rules.” According to USDA, the proposed rule announced today would provide the following protections:


Hong Kong Discovers Variant H1N1 Flu Virus
Hong Kong researchers have confirmed that the H1N1 influenza virus has undergone genetic reassortment to give rise to a novel H1N1 virus in pigs, according to a study done by the University of Hong Kong released Friday.

The newly discovered virus has genes from the novel H1N1 virus and other pig influenza viruses, which Hong Kong researchers say demonstrates that the atypical virus may change in unpredictable ways in pigs, adding concern that such viruses may impact global public health.

The Hong Kong study does not suggest that the particular reassortment poses an immediate threat to humans, but the results emphasize the need for systematic surveillance of flu viruses in pigs worldwide, the university said.


June 23, 2010: Advanced Swine Reproductive Management Workshop Lifelong Learning Center
Norfolk, NE
For more information contact: Dave Stender by phone (712) 225-6196, fax (712) 225-3173 or e-mail

June 24, 2010: Advanced Swine Reproductive Management Workshop, Plymouth County Extension Office
LeMars, IA
For more information contact: Dave Stender by phone (712) 225-6196, fax (712) 225-3173 or e-mail

July 18-21, 2010: 21st International Pig Veterinary Society Congress, Vancouver Convention and Exhibition Centre,
Vancouver, British Columbia, Canada;
For more information contact: (604) 688-9655 ext. 2 or or go to


Are you seeking a professional position in pork production management, and an excellent family environment? If yes, look at Texas Farm, LLC.

Located in the Texas Panhandle counties of Ochiltree and Hansford, Texas Farm LLC is currently producing pork from 42,000 sows, and we are growing.

Texas Farm is constantly searching for highly motivated self starting individuals who want to excel in pork production and in company leadership.

Benefits: Competitive pay; Excellent medical, vision, dental, and prescription drug benefits; 401K; paid vacation, holidays, sick leave; and more.

Texas Farm, LLC.
4200 S Main, Perryton, TX 79070
Rosa Estrada or Corby Barrett • (806) 435-5935 or



As positive margins return to pork producers’ ledgers, owners and managers are recounting the hard lessons learned as they redouble efforts to improve risk management skills, measure and manage production variance with greater precision, and produce quality pork in a safe and sustainable manner. At the heart of the 50th edition in the Blueprint series, published April 15th, 2010, is a focus on new and improved pathways to profitability.

When two leaders come together, expect great things to happen. One-dose protection from wean to finish. That’s Ingelvac® CircoFLEX-MycoFLEX™. The only circovirus and Mycoplasma vaccines USDA-approved for mixing. The result? A true dose of confidence from two powerful leaders. Call Boehringer Ingelheim at 1-800-325-9167 or click here for more information.


The May 15 edition of the National Hog Farmer will feature the fifth class of the “Masters of the Pork Industry,” featuring personal and professional profiles of industry entrepreneurs destined to leave their mark on the North American pork industry. This special edition also features 21 products nominated for the National Hog Farmer’s World Pork Expo New Product tour and a full slate of WPX events and activities.

According to a head-to-head trial1, LINCOMIX® (lincomycin) is equally as efficacious for ileitis control at 40 g/T as Tylan® is at 100 g/T. That means you’ll spend a whopping 40% less for comparable results. Contact your veterinarian or your Pfizer Animal Health representative to learn more.
1. Data on file, Study Report No. 768-9690-0-CPC-97-002, Pfizer Inc.


National Hog Farmer offers 10 posters targeting key production areas, offering guidance in critical areas such as feet and leg soundness and reproduction traits soundness in replacement gilts. Others include pig anatomy, heat detection, sow condition, etc. All posters are in English. Select posters are translated to Spanish, Chinese and Japanese.


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U.S. pork producers must be able to compete in foreign markets without restrictive tariffs or sanitary barriers to trade. NPPC’s mission of gaining and expanding access to markets through free trade agreements is paramount to the continued success of the U.S. pork industry — Click here to learn more.

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