U.S. Pork Industry

1

• U.S. Pork Industry
• Structure 2003

Glenn Grimes Professor Emeritus University of
Missouri-Columbia
Website http//agebb.missouri.edu/mkt/index.htm
2
U.S. Pork Industry Structure Study, 2003
Estimated Total Number of Operations Share of
U.S. Slaughter in 2003 by Size Category

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
3
U.S. Pork Industry Structure Study, 2003
Share of Annual U.S. Hog Slaughter by Year and
Size Category

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
4
U.S. Pork Industry Structure Study, 2003
Number of Large Firms Producing Hogs

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
5
U.S. Pork Industry Structure Study, 2003
Percent of U.S. Slaughter Hogs Marketed by Large
Firms

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
6
U.S. Pork Industry Structure Study, 2003
Percent of U.S. Slaughter Hog Marketingsby Type
of Owner

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
7
Growth Planned 2000-03 as Reported in 2000 Study
Compared to Actual Growth 2000-03
U.S. Pork Industry Structure Study, 2003

Percent increase in number of head marketed.
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
8
Growth Planned by Each Size Group2003-04 and
2003-06
U.S. Pork Industry Structure Study, 2003

Percent increase in number of head marketed.
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
9
U.S. Pork Industry Structure Study, 2003
How Firms Plan to Expand 2003-06 (percent of
firms responding in each size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
10
Percent of Firms That Made a Profit in 2001
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
11
Percent of Firms That Made a Profit in 2002
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
12
Percent of Firms That Made a Profit in 2003
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
13
Percent of Firms That Started Marketing Hogs
Prior to 1975
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
14
Percent of Firms That Started Marketing Hogs 1976
to 1985
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
15
Percent of Firms That Started Marketing Hogs 1986
to 1995
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
16
Percent of Firms That Started Marketing Hogs
after 1995
U.S. Pork Industry Structure Study, 2003
Firm Size (1,000 head mktd annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
17
U.S. Pork Industry Structure Study, 2003
Production Information 2003 (average of
percentages reported by individual firms)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
18
Networking Activities of ProducersMarketing
1,000-50,000 Head Annually
U.S. Pork Industry Structure Study, 2003

Percent
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
19
U.S. Pork Industry Structure Study, 2003
Percent of Hog Operations Producing Other
Commodities
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
20
U.S. Pork Industry Structure Study, 2003
Other Commodity Considered Most Important
Produced on Hog Operation (percent of total firms
in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
21
U.S. Pork Industry Structure Study, 2003
Percent of Litters Sired by Artificial
Insemination 1997, 2000, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
22
U.S. Pork Industry Structure Study, 2003
Where Firms Acquired Semen (percent of firms
responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
23
Firms Finishing Canadian-born Pigs
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
24
U.S. Pork Industry Structure Study, 2003
Method of Pricing Canadian-born Pigs (percent of
firms that fed Canadian pigs by size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
25
U.S. Pork Industry Structure Study, 2003
How Firms Marketed Slaughter Hogs, 2003 (percent
of firms in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
26
U.S. Pork Industry Structure Study, 2003
Number of Different Packers Sold to in 2003
(percent of firms responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
27
Percent of Marketings Soldto Producers Largest
Buyer
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
28
U.S. Pork Industry Structure Study, 2003
Distance Hogs Are Hauled for Slaughter (percent
of firms responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
29
U.S. Pork Industry Structure Study, 2003
Percent of Hogs Sold under Marketing
Contracts (average of percentages reported by
each size group)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
30
U.S. Pork Industry Structure Study, 2003
Flexibility in Marketing Dates (percent of firms
responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
31
Percent of Hogs Sold on Carcass Merit Basis
U.S. Pork Industry Structure Study, 2003
Percent
99
98
97
95
93

88
89
85
81
80
80
77
77
76
70
71
63
60
Firm Size (thousand head mktd. annually)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
32
U.S. Pork Industry Structure Study, 2003
Use of Hog Futures Market by Hog Firms (percent
of firms responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
33
U.S. Pork Industry Structure Study, 2003
Why Hog Producers Do Not Use Futures or Options
(percent of firms responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
34
Opinions on Marketing ContractsHelp Coordinate
Slaughter
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
35
Opinions on Marketing ContractsFelt They Were
Treated Fairly under Contract
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
36
Opinions on Marketing ContractsPlan To Continue
Marketing with a Contract after Current One
Matures
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
37
Opinions on Marketing ContractsShould Be More
Closely Monitored by USDA
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
38
Opinions on Marketing ContractsPrefer To Market
All Hogs on Cash Market
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
39
Opinions on Marketing ContractsHave Caused
Lower Cash Market Prices
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
40
Opinions on Marketing ContractsProducers with
Contracts Get Higher Prices
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
41
Opinions on Marketing ContractsPackers Showed
Undue Preferencein Offering Contracts
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
42
Opinions on Marketing ContractsShould Be Made
Illegal
U.S. Pork Industry Structure Study, 2003
Firm Size (thousand head mktd annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
43
U.S. Pork Industry Structure Study, 2003
Percent of U.S. Hogs Raised by Firms That Are
Contractors, 1997-2003
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
44
U.S. Pork Industry Structure Study, 2003
Percent of U.S. Hogs Raised under Contract,
1997-2003
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
45
U.S. Pork Industry Structure Study, 2003
Average Length of Production Contracts


University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
46
U.S. Pork Industry Structure Study, 2003
Training and Supervision Provided byContractors
to Growers

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
47
When Growers Began Contract Production
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
48
Grower Plans after Contract Expires
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
49
Number of Contractors Per Growerin Last 5 Years
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
50
U.S. Pork Industry Structure Study, 2003
Contractors Expectations for Next 5 Years


University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
51
How satisfied are you with hog production?
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
52
How satisfied are contractors with contract hog
production?
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
53
How satisfied are growers with contract hog
production?
U.S. Pork Industry Structure Study, 2003

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
54
U.S. Pork Industry Structure Study, 2003
What Do You See as the Greatest Challengesto the
US Pork Industry over the Next 5 Years?


University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.
55
U.S. Pork Industry Structure Study, 2003
Percent of Firms That Will Stay in Business until
2008 with Average Hog Price 40-42 Central
Iowa Corn Price 2.40
Firm Size (thousand head mktd annually)

Percent
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board, Monsanto Choice Genetics, and Land
O Lakes.