Allan Bentley, Sales, Genesus Genetics 
abentley@genesus.com 

“Capitalize on confusion”

The pork show season is almost over and we get to visit with a lot of people in the pork industry during this time.

I am going to piggy back off Jim Long’s comments in his commentary about questioning the need for lean hog futures. I don’t know of any comment Jim has made that provoked so much discussion at a pork show.

I believe Jim is correct, algorithm and day traders are capitalizing on the confusion and mixed messages coming out of Washington D.C. and China. Dr. Joe Carr explained it to me as if the fundamentals have become the boundary lines of the football field, and although that may define the basic rules, the traders can run all over that football field in any direction they want.

There is absolutely no fundamental reason hog futures are where they are right now, maybe because traders are controlling the market? I have been quite involved with bankers from Missouri to Minnesota and they too are very disappointed in the lack of response from hog futures.

The fact that 25% of the hog population is gone should be affecting the market in a positive way for producers. Bankers used to use an inelastic number for hog prices of 4, meaning for every 1 percent change in the supply, the price should react the opposite by 4%. I do not need a calculator to tell you that 25% fewer hogs should mean much higher prices then we are seeing today.

Bankers nor market analysts can’t explain why this is happening. They are as confused as anyone in the pork industry. Maybe the Democrats should investigate the trading practices in Chicago instead of President Trump. A very smart man once told me to “capitalize on confusion.”  I am thinking he must have worked in Chicago!

PEDv is starting to pop up sporadically in herds and PRRS is always a problem but these issues probably won’t affect the markets either.  The bottom line is that there is a huge gap of pigs in China and they need to replace that loss.

When will the market be a true barometer for supply versus demand and not what traders think pork is worth?  Again, traders seem to be able to “capitalize on confusion” and the producers are suffering from their manipulation of the Chicago Board of Trade. 

Genesus Customer Testimonials

Country View Farms, NE, USA

“The hardiness of the Genesus females continues to mpress us. We broke with PRRS in January 2019,but it was amaing to see the Genesus animals desire to live ad get through it. The gilts we purchased from Genesus have been great”

Hutterville Farming, AB, Canada

“Little over halfway through the conversion to Genesus animals; and so far we are seeing huge difference in live born (over 1.5pigs extra). Genesus sows areweaning nice even litters easy to manage and good geed intake in lactation. Overall nicely satisfied for now. Salesman 5 stars.”

Pork Commentary, February 18^th, 2020
Jim Long, President-CEO, Genesus Inc.

The China Agriculture Industry and particularly the Swine Industry have been greatly affected by African Swine Fever (ASF) and now the implications of Coronavirus which has restricted people and transport movement. To say it’s a bad situation is best illustrated by the translated key points from the chairman of China Agriculture Association – MR. Xirong Li in an interview with Chinese media.

Translated Key Points from Mr. Xirongs interview:

First:
The obstruction of logistics seriously affects the production supply and the trade of live livestock and poultry. 

Since the outbreak of coronavirus, major public health emergencies have been launched at the first level, resulting in the control of roads and motor vehicles.  As the consequence, the transportation of pigs, young breeding stocks, eggs, poultry meat, feed, veterinary drugs, vaccines, equipment and other production and living related materials are greatly affected. 

Cross province live livestock and poultry sales and transportation links are broken. Live livestock and poultry cannot be transferred between enterprises to meet normal production, and business process is interrupted. 

At present, all or some cities and counties in 27 provinces have closed the live poultry market, and the live poultry in the market cannot be sold. The poultry industry has suffered heavy losses. 

According to the incomplete statistics of the association, it is preliminarily estimated that as of February 12, the loss of poultry industry has reached 15.865 billion yuan (2.25 U.S. billion)

Livestock and poultry industry is a special industry with poor ability to resist market risks. Once the industry is destroyed, the recovery period will be a very slow process.

Second: 

The slaughterhouse cannot be started or the operation is insufficient and affects the production and marketing of livestock and poultry. 

The procedures to reopen the operations of slaughtering enterprises is complicated: the road restrictions on the flow of people, resulta in a shortage of manpower, an so the slaughterhouses cannot start operation, or the operation is insufficient which directly leads to the failure of sales for poultry, commercial pigs, cattle, sheep, rabbits and others. 

Third: 
The production staff is in short supply and the cost is rising. 

Affected by the delay of returning employees and the extreme shortage of labor force, the enterprises cannot complete the established work plan, the production index decreases and so the cost increases.

Fourth: 
Some enterprises are short of working capital and have difficulty in capital turnover. 

Due to the dual threats of ASF and coronavirus, the enterprises have invested heavily in biological safety control and prevention, including the increase of inventory of various materials, thus raising the warehouse cost and plus the new outbreak of coronavirus, which seriously affects pig sales, and the lack of liquidity and difficulties in capital turnover.

Fifth:  
It will affect the purchase of materials, delay the commencement time of new projects and introduction of breeding stocks. 

It is difficult for enterprises to purchase materials for life and epidemic prevention, especially face masks and disinfectants. 

New projects under construction in some enterprises are affected to varying degrees. 

Due to the restriction of personnel flow and road traffic, many enterprises cannot introduce new genetics, which affects the follow-up commercial production.

Given above challenges, the Ministry of Agriculture and Rural Affairs, National Development and Reform Commission, and the Ministry of Transport jointly developed a policy to build the Green Corridor for the priority products including feed products, corn, soybean meal and other feed raw materials, breeding livestock and poultry, piglet and young birds, aquarium fry, livestock and poultry marketing animals, fresh milk, dairy products, fresh aquatic products, chilled and fresh pork, transferal bees, etc. 

We believe Brett Stuart of Global AgriTrends has as good a handle on China’s Swine Industry as anyone anywhere. Here are some comments published in the Western producer by columnist Karen Briere from Brett’s recent talk in Saskatoon Canada:

“Disease is a global market game-changer.”

“The hog market seems to be having a hard time believing what is happening in China”, Stuart said. He called it “irrational.”

The country officially says 40 percent of its sow herd is gone but he estimates it at closer to 65 percent.

“In context, North America has about 6.5 million sows and China just lost 24 million.”

“I look at U.S. hog futures and no one will believe it. We’re not even making money on hogs. They’re pretty suspicious of this, especially the investors.”

“It’s just not there,” Stuart said. “By my math, I say China is going to have about a 24.5 million tonne gap in protein in 2020.”

“Current global pork trade is about eight million tonnes.”

Stuart said “there is nothing that can be produced in the volume China requires to fill the gap. Chinese pork prices are going to stay very high for a long time as a result.”

He added that “China’s claims that it can restore normal pork supply by 2021 is simply propaganda; there aren’t 20 million sows on the global market.”

Topigs Norsvin Appoints New CEO

In the world of Swine Genetics, we pay attention.

Topigs Norsvin after a several month search has appointed Villaume Kal as its new CEO. Mr. Kal replaces Martin Bijl who left in 2019 to join a company selling Grass Seed. 

Mr. Kal is the former CEO of Rousselot, part of Darling Ingredients. Darling Company is where we used to take our deadstock for rendering.

Kind of find it funny, maybe even poetic that a deadstock company is training ground for a swine genetics company CEO. Strange but interesting world. 

Genesus Customer Testimonials

Newport South, MN, USA

“The Genesus Duroc sired pig hits the ground running, the pig finds milk and never slows down. Very easy starting pig, transitions well to pellets and then to grind and mix. They never slow down even in our barn where we move them five times. The pigs never skip a beat and have a very low mortality rate from wean to finish. The Duroc pig can withstand everyday health challenges and is very uniform and finishes in a tight group. This pig has a huge appetite, and it shows to be beneficial through health challenges.    This all starts in the farrowing room thanks to the Genesus F1, she has a big appetite, milks all her pigs and gets them off to the right start.”

Ferme Durand, MB, Canada

“We are very proud to be associated with Genesus whether it be with the executive or selection team. All are precisely important to our relationship. Pig performance and temperament are second to none – making our care for animals a great joy.”

For more testimonials click here 

Pork Commentary, February 10^th, 2020
Jim Long, President-CEO, Genesus Inc.

The Wild Gyrations in the lean hog futures are best illustrated by the following:

June Lean Hog Futures
January 23    88.175
January 31    75.625
February 7    81.555

The insane drop in a week of over $25 per head has since been followed in a week by a rebound of about half that amount. The word “stable” should never be used in the current scenario of the lean hog futures or maybe even the psyche of many of the US producers.

As we wrote last week, it is bizarre to think Coronavirus would stop Chinese from eating pork or any other meets (not related to bats, snakes, etc.). As our Genesus General Manager in China told us “The only stores open are supermarkets. We go to stores, buy food and sit at home eating.” Point is they aren’t buying cars, apple phones, going to restaurants, etc. Food, yes.

There are reports that travel restrictions had prevented pig and poultry farms from receiving feed. Livestock perished as a result. Last week the Chinese Federal Government put a priority on ensuring food and agriculture products were prioritized in movement with little restrictions.

There are reports that imported pork is backing up at Chinese Ports.  Not enough trucks arriving to take pork to the next destination due to Coronavirus reaction.  We expect this is to get sorted fast. These are some advantages to a command society.

We were with a Chinese Company last week that is a Global Mega Producer.  They are still very optimistic that the Chinese hog price will hold near current levels ($2.39 U.S. liveweight a lb.). 

A reflection of breeding stock demand are these current prices in China.

• A Duroc bred to a York/Landrace gilt offspring with decent health- $350 U.S. for 50 lb. pig (here we call this a market hog).
• Maternal AI, $120. U.S. / dose.
• Terminal AI Duroc, $25 U.S. / dose

Certainly, high price points. Reflects supply and demand of genetics in China and optimism of future hog pricing. China government gave a signal last week of further need for U.S. pork by cutting tariffs by 5%. They will stay in market.

U.S. Pork Exports in the last week of January at 42,000 tonnes, were double from a year ago. So far up 460% to China year to date (YTD), up 62% to Mexico YTD and up 107% to Canada YTD. Mexico and Canada are duty-free to China.  We expect U.S. pork is filling holes in both countries for pork going to China.  It’s a North American market. Any pork leaving is a good idea.

Last week’s average price for market hogs in China was 36.86 rmb/kg. or $2.39 U.S. /lb. ( for a 270 lb. hog= $645).  Go Figure, we should be able to ship pork from here with current market hogs about $122.00 a head 270 lbs.?

Last week we wrote wondering if the Chicago Board of Trade and lean hog futures were really related to the swine industry any more than show pigs. The rest of the world has no lean hog futures and most countries are doing fine without them. We are told about 70% of current lean hog future participants are non-hog farm related. Are these speculators?  Not sure, but, there is a group of people making a living unrelated to the direct participants in the industry. 

Was interesting this past week, we had producer comments wondering too if lean hog futures did anything but create a more volatile market. They also had never thought about that no other pork country had its own “Las Vegas”. 

Our point is, no other major hog producing country has had the extreme reaction in pricing that lean hog futures had the last two weeks.  It’s not anything but harmful to producers.  We sense many producers who invested huge capital resources and are committed to our industry resent their destiny being tied to sharpie speculators that live in New York City and Chicago sitting on gobs of money to run the market up and down.

They don’t care if its hog, orange juice, oil etc.  It’s all about people who make nothing tangible for society, living on speculation.

Genesus Customer Testimonials

Country View Farms, NE, USA

“The hardiness of the Genesus females continues to mpress us. We broke with PRRS in January 2019,but it was amaing to see the Genesus animals desire to live ad get through it. The gilts we purchased from Genesus have been great”

Hutterville Farming, AB, Canada

“Little over halfway through the conversion to Genesus animals; and so far we are seeing huge difference in live born (over 1.5pigs extra). Genesus sows areweaning nice even litters easy to manage and good geed intake in lactation. Overall nicely satisfied for now. Salesman 5 stars.”

Pork Commentary, February 3^rd, 2020
Jim Long, President-CEO, Genesus Inc.

To say last week was bad seems like an understatement. When you get to the spot to rationalising “It’s not that bad, I am not living in Syria”.

It appears for some reason lean hog futures traders believe Coronavirus in China is going to have consumers stop eating pork. Not sure where that idea comes from. Is this rationale or just panic by a group driven by the reality and/or fears of margin calls?

On Thursday, January 30, 2020, in China the average price of hogs was 36.32 rmb/kg ($2.31 U.S. liveweight a lb.) steady with the prior week. In our minds, the hog price is an indicator of demand. If hog price holds it means the market is in place. It seems so far the Chinese continue to eat pork (i.e. food).

Europe (Germany & Spain) have been major exporters to China. We thought it worthwhile for us to check where their hog prices went this week from the week before.

• Jan 29, 2020 Germany 1.85 Euro/kg +1.6%.
• Jan 30, 2020 Spain 1.424 Euro/kg +0.3%

So far prices are holding.

U.S. pork exports were 43,600 MT. (Jan 17-23), double a year ago. China was 18,620 MT. (the highest week ever) up from 3,000 MT. a year ago.

Exports are strong- Our farmer arithmetic tells us over 200,000 more equivalency hogs were exported this past week compared to a year ago. Price going forward is going to be driven by demand. The number of hogs we have, we have. If exports hold and/or be enhanced we expect no reason domestic pork demand should be lower.

There is a good chance the collapse in lean hog futures will turn around and prices will rebound.

Other Observations:

Sow slaughter the last two weeks has averaged 66,000. Maybe due to Christmas holiday back-up, but if it continues at a pace over 60,000 a week it would tell us to expect some liquidation underway.  The U.S. averaged 57,000 a week in 2019.

The U.S. cattle inventory report last week was bullish. It’s the first by animal report in last 12 reports that showed a decrease in total cattle numbers- down 1%. Maybe a cattle future bump this week will support lean hog futures.  Certainly less beef can be pork price supportive over the coming months.

Brazilian Meat Packers JBS S.A. (Also in USA) and BRF S.A. told Reuters on Wednesday that the coronavirus outbreak in China could boost Chinese demand for their products, including pork. Mainly for food safety issues.

An Article in eFeedLink calls pork, beef, chicken and dairy the big winners in the U.S. – China Phase 1 trade agreement. Premise is to live up to the $40 billion Ag import increase committed by China.

The logical way is to purchase high-value products. Beef ( U.S. $6200 tonne), Pork (U.S. $2,600 tonne), Chicken (U.S. $1,090 tonne), Dairy i.e. butter ($4,030 tonne), versus soybeans (U.S. $340 tonne), Corn (U.S. $153 tonne). 200,000 tonnes of combination meat-dairy products are equal to 10 million tonnes of soybeans.

With African Swine Fever (ASF) and its decimated swine herd, China doesn’t need corn-soybeans as much as they need meat (pork) to fill the ASF pork shortage. eFeedLink predicts Chinas pork imports from U.S.A. to reach $3.1 billion in 2020 up from about $1.25 in 2019.  Some of the increase will be at the expense of Brazil and E.U. to meet the Phase 1 import commitment.

Tim Hortons is the largest fast-food chain in Canada.  They have been selling Beyond Meat products (Fake Meat). Last week they announced they are stopping the sale of Beyond Meat Products because the demand is not there. 

Last week we reported my son works at a local McDonalds cooking Burgers and “Beyond Meat burgers”.  Only 1 out of 100 burgers sold is a “beyond meat burger”.  Maybe this “fake meat” will sell somewhere. But where? 

Summary:

It is rattling futures dropping over $10 in a week. Maybe unprecedented.

Upside-cash hogs have held so far.

Pork Cut-outs declined but not a scale close to the lean hog future drop.

Appears so far China and Europe Hog Prices have held. We suspect the futures collapse is an overreaction by a market my late friend Doug Maus called “Chicago! Las Vegas with no rules”.

We ourselves wonder if the futures market is related to the hog market as show pigs are to the swine industry.

Lots (almost all) countries do fine without a lean hog future market. Does it really help producers?

Jem Farms

“A. very rigid and durable animal. Excellent litters and strong sows. Farrowing’s are quick and trouble free.”

Jem Farms, ON, Canada

Brenelm Farms

“Providing Consistency – large uniform litters, good consistent growth from wean to harvest. 25 pigs/sow/year with PRRS break.”

Brenelm Farms, ON Canada

Diamond Z Farms

“We have an older unit. The Genesus sow holds up very well in challenging conditions. The Duroc Sire proves to be the leader in Growth.”

Diamond Z Farms, USA

Pork Commentary, January 27^th, 2020
Jim Long, President-CEO, Genesus Inc.

Every January the Iowa Pork Congress is held in Des Moines Iowa.  It is the premier winter trade show in the United States and gets visitors from all across the country

The Iowa Pork Congress was held the same time this year as the Davos’ Global Economic Forum in Switzerland. We wondered if Iowa Pork Congress was the Davos’ of the Pork Industry with the snow like Davos’ minus the mountains, billionaires, helicopters, private jets, etc. To be clear, our wondering stopped quickly. There is no comparison!

What Iowa really had last week was a political bonanza. The Iowa Caucus, held every four years were ten days from the vote. Iowa is the first vote for the U.S. presidential candidates. 

Last week the TV channels were inundated by political advertising. For TV stations and other media in Iowa, the caucus must be like the four-year hog cycle. Every four years they get a big surge in income.

Other Observations:

The Iowa Pork Congress had lots of exhibitors, probably more from what we could see than in the past years. Attendance was solid but probably effected by some icy weather that kept some people away.

The attitude of producers was termed by one person as “Growly”. Not a happy production base. More than one producer said they hadn’t made money for over a year and a half.

As far as expansion in the industry it’s hard to figure. This time of year, every year there are lots of quoting for new sow barns. Then the potential expanders go to the bank and find out if they can get money. A place where dreams die.

Talking to one packer, he said he was surprised if the production sector is losing money, why has there been an expansion in inventory. Good question. We didn’t have an answer.

A number of people we spoke to were riled up. Their belief, that carcasses are still not going into U.S. pork cut-out data. Was supposed to start January 1st. We expect there might have been some delay but the U.S.D.A. will get sorted soon.

^{Geneusus Team at Iowa Pork Congress 2020}

China, China, China. 

Producers are glad that Phase 1 of the trade deal is signed. Now they hope to see lots more pork going to China. Some producers spoke of the sad part that producer prosperity depends on more trade to China.
It’s the Reality. Maybe a grim reality, but “it is what it is.”

Genesus U.S. sales team had a meeting prior to the Iowa Pork Congress.  As a group, we did a field trip to Fareway store. The regional store is selling Genesus derived Duroc Pork as its premier product. On every product item, it’s a minimum $1.00 lb. higher than the comparison pork.

Fareway stores feature butchers serving from behind glass meat cases. They are salesmen behind the counter. 
We asked the head butcher “When customers ask why the Duroc Pork (Genesus) is worth over a $1.00 lb more, what do you say?” Answer “It tastes better!”. He added, “Once they try it they always come back for more.” 

“Taste better” not because it’s a Duroc, it’s because the Genesus Duroc has more marbling, firmness and redder pork.  All Durocs are not the same! If we use a so-called Duroc but it won’t qualify for legal use of Duroc name in U.S. meat case, is it really a Duroc? It won’t grow our industry.

If we want to grow our industry we need to produce pork that “tastes better”.
Maybe this is an oversimplification but as pork producers, we chase $1.00 in the cost of production in a hog. When demand drives price, such as taste can potentially increase hog values by $10 bills.

Final Note:

My youngest son is 17, he works at McDonald’s part-time. He cooks and puts together meals. The store he works at would be considered in a higher-income area. He estimates that for every 200 burgers there are about 2 that are plant-based. Small focus group but not a resounding testament to demand for plant-based burgers. There is hype, then reality.

Genesus Customer Testimonials

“We have raised hogs in the past that are high maintenance. The Genesus boar is not. They are a rugged, fast-growing animal that is even at market. The Genesus boar line makes managing finishing barns enjoyable.” Hamland Acres Inc. IL, USA

D & S Brassington 

“We started with Genesus Duroc Semen in 2014 and we noticed the piglets were more uniform with a higher appetite and reaching slaughter weights of 85kg (deadweight) 10 days earlier. We decided to switch 100% to Genesus (maternal and terminal).

Today we are weaning more pigs per litter, averaging 10 days less to market and grading has improved.” D & S Brassington, UK 

More testimonials click here!

Pork Commentary, January 20^th, 2020
Jim Long, President-CEO, Genesus Inc.

Last week was Trade Deal week in the U.S.: with both USMEF* and China Phase 1 signed.

*USMEF is the new revised NAFTA between U.S., Mexico, and Canada. 

For U.S. – Canada pork producers it means the trade between the two countries will continue relatively easy and tariff-free.

For the Mexican industry, it means lots of U.S. – Canadian pork will continue to be imported there.  January-November 2019 exports to Mexico from USA were 522,563 metric tonnes. Mexico is the largest volume importer of U.S. pork.

U.S. – China Phase 1 trade agreement appears to initiate a $40 billion annual increase by China in U.S. ag products. Certainly, China can use some pork to fill the black hole created by a 40% drop in their swine inventory. An estimated 15,000-tonne decrease in China’s production. 

From January to November 2019 China purchased 311,043 metric tonnes of pork from the USA, at a value of $691 million dollars.  You would like to think that within a $40 billion commitment it is logical that U.S. pork imports will ramp up further.  The last few weeks have been at record levels and as more U.S. slaughter plants become Ractopamine free we expect even more pork exported to China. Between USA and Canada, we would not be surprised to see well over 120 million tonnes a month exported to China in 2020. 

Pork that goes to the Black Hole in China created by African Swine Fever (ASF) will be hugely supportive to Domestic Hog Prices in both countries.

Other News

To get a boost in U.S. prices we need slaughter numbers to decrease. An early indicator of hog market readiness is the daily carcass weights the USDA publishes. 

• Last week the first 4 days was 212.5 lbs. The week before the average was 215.26. Well over a 2 lb. carcass drop. As large a decrease week over week you will ever see. Let’s believe it’s an early indicator of fewer hogs coming to market.
  
• Last year same time 53-54% lean hogs were 57.49₵ lb. This year 60.27₵ lb. 
  
• DTN Gross Packer Margin calculation shows last week at $40 per head.  Interestingly the same as last year and the three year average at the same time.  Over the last three years, Gross Packer Margins didn’t reach the $40 threshold again until September.
  
• U.S hog slaughter last week was 2,574,000 down from the week before 120,000. Probably shortened by bad weather in the Western mid-west Friday – Saturday.
  
• U.S.D.A. Pork cut-outs closed Friday at $75.47. They are slowly increasing which is a good sign of demand.
  
• Total U.S. Pork Exports were 41,500 metric Tonnes the first full week of January, up from 21,920 the same week a year ago. China imported 16,512 tonnes the first week of January from the U.S.  Last year same week 3,046 tonnes. Up 442%

China imported in 2019 2.1 million tonnes of pork, up 75% from 2018. In December China imported 375,000 tonnes, the most on record. If that pace was to continue for 2020 that would be over 4 million tonnes. That would be a price game changer.

China reported last week that its pork production was 21% lower in 2019 than it was in 2018.  Pork production at 21% lower with a reported 40% lower swine inventory is a result of herd liquidation putting more pork into the market as the liquidation happened.

Last week the average hog price in China was 36.02 rmb/kg. which is $2.38 U.S. liveweight a lb.  A 260 lb. hog (120 kg.) would be selling for $620. Reminds us when we were in China last May, not one producer we talked to thought the price would go over 25 rmb/kg. which is almost $200 less a hog then-current prices. Go figure, it would be nice to get that sort of jump here.

Pork Commentary, January 13^th, 2020
Jim Long, President-CEO, Genesus Inc.

U.S. hog slaughter continued unabated with 2,713,000 last week, jumping up from the two holiday-shortened weeks previous. We do expect weekly hog marketings to drop soon and/or hog weights to decline rapidly.

U.S. average cash early weans were steady at $61.46 while 40 lb feeder pigs jumped $6.00, up to $67.60. The canary in the coal mine is small pigs, a reflection of supply and demand. They have shown a 70% increase in the last few weeks.

U.S. pork exports in November were the best ever.

• Up 26% from a year ago. 
• Up 11% from the previous high in July 2019

November Pork exports of 259,812 metric tonnes are over 3 million hog equivalent. China/Hong Kong lead way with 86,213 metric tonnes, up 284% from a year ago. We need to export and we are.

Last week (January 3^rd) the German Ministry of Agriculture confirmed that African Swine Fever (ASF) was present in Poland 20-30 km (12-20 miles) from the German border. If ASF gets into Germany could be game-changer. China is importing approximately 16-18% of pork imports from Germany. Up until now, China has not been accepting any Pork from ASF countries i.e. Russia, Poland, Romania, Ukraine, etc.

The Phase 1 tariff agreement between the USA and China is reported to be signed on January 15^th when a Senior Chinese delegation comes to Washington. Pork and Ag is supposedly a key component. We should see details after the signing is completed. Clarification could lead to a boost to Pork prices.

We believe that our industry should produce Pork consumers want to eat for its taste and flavour. This past week we were in Iowa Falls and visited a Fareway store. They offer Duroc Pork sired by Genesus (Purebred Registered Durocs). We saw a huge price difference.

Duroc (Genesus) boneless chops	$5.00 (2 chops)
Other Boneless chops	$5.00 (3 chops)
Duroc (Genesus) bone-in Pork chops	$3.49 lb.
Thick cut bone-in Iowa chops	$1.98 lb.

(Good chance the “Other” could be sired by pretending Duroc, all Durocs are not the same)

Quite the price difference isn’t it. As you can see by the picture it was a fresh meat counter. We asked the butcher why the price difference. He replied the Duroc (Genesus) Chops taste better, that’s the only pork he eats himself. He said he was surprised by the demand, that in Iowa Falls people would pay such a premium for the Duroc (Genesus) taste.

To say we were proud to see and hear the butchers’ comments is an understatement. We (Genesus) have invested millions to create genetics that is cost-competitive in production with the added bonus of better tasting pork.

It’s sad when we hear from industry people consumers won’t pay for better tasting pork. It appears in Iowa Falls they will. When will we figure out as an industry the people of New York City and Los Angeles will too. Taste Creates Demand. Demand drives price.

Genetic Round-Up

Last week we wrote about our observations of the 4 major global Swine Genetic Groups; PIC, Topigs-Norsvin, the Danish and Genesus. Some of our competitors didn’t much like what we said. Some didn’t like our observations that the former CEO’s want to sell grass seed and medical devices. Some thought it funny that our plans weren’t to leave Genesus to sell grass seed. 

Probably the world’s biggest didn’t like their 5-year profit trend line. The emperor has no clothes comes to mind.

To Sum up:

The Global Swine Genetic business is a rough game. The attrition of players over the last decade has been intense. As one person wrote to us last week, ones that don’t get it should watch the Bruce Willis movie “Last Man Standing”. Sums up the battle for the world’s swine producers.

Get acquainted with the 
Global Mega Producer

A program of recognition led by National Hog Farmer sponsored by Genesus Inc.

Iowa Select Farms, United States

Iowa Select is once again recognized as a Global Mega Producer for 2019.

Iowa Select, now 242,500 sows was started in 1992 with a contract and financing for 10,000 sows. With a current marketing number of more than 4 million pigs per year, Iowa Select has more than 800 farms in 50 counties and is one of the leading economic engines for rural Iowa communities.

The business employs and contracts more than1,850 Iowans’.

Iowa Select is a Premier Pork business in the United States.