Negotiating Cash Hog Sales, Crush Margin24 October 2012
US - The hog industry is losing negotiated cash hog sales at an alarming rate since the early 2000’s, reports Hurley and Associates.
Industry experts suggest 10 per cent of slaughter is the percentage needed to allow for fair price discovery in pricing cash hogs.
Most cash hog contracts use the negotiated market as a benchmark in pricing contracted pigs. The lower the number of negotiated pigs sold, the lower the odds of a fair price.
There are many loopholes in how cash prices are reported to the public, and little to none is real-time.
Hurley and Associates has a network of producers that negotiate market hog sales and then report the confirmed prices to be shared on twitter. The “tweets” in most cases go to other producers in the form of a text on their cell phone.
Information moves very fast these days and there is no reason that the swine industry shouldn’t take advantage of it as well.
If you would like to be a part of the reporting network, as a contributor or use it as a news source, you can learn more by visiting www.leanhog.net/cashnetwork.
With higher priced feeds, now, more than ever, is the time to be watching the crush margins in your future hog groups.
Visit the Daily Hog Report section of the website here.
ThePigSite News Desk