Jim Long Pork Commentary: First week of January, our observations

US hog slaughter continued unabated with 2,713,000 last week, jumping up from the two holiday-shortened weeks previous.
calendar icon 16 January 2020
clock icon 4 minute read

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 four 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.

Jim Long

President - CEO at Genesus Genetics
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