U.S. Pork Industry

1

• U.S. Pork Industry
• Structure 2006

Glenn Grimes Professor Emeritus University of
Missouri-Columbia
Website http//agebb.missouri.edu/mkt/index.htm
Rev 6/19/07
2
U.S. Pork Industry Structure Study, 2006
Estimated Total Number of US Hog Operations
Share of US Hogs Slaughtered in 2006 by Size
Category

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
3
U.S. Pork Industry Structure Study, 2006
Share of US Hogs Slaughtered by Year and Size
Category

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
4
U.S. Pork Industry Structure Study, 2006
Number of Large Firms Producing Hogs

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
5
U.S. Pork Industry Structure Study, 2006
Percent of U.S. Slaughter Hogs Marketed by Large
Firms

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
6
U.S. Pork Industry Structure Study, 2006
Percent of U.S. Slaughter Hog Marketingsby Type
of Owner, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
7
Increase in Marketings Planned 2003-06 in 2003
Study Compared to Actual Marketings 2003-06
U.S. Pork Industry Structure Study, 2006

Percent increase in number of head marketed.
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
8
Increase in Marketings Planned by Size Group,
2006-07 and 2006-09
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
9
Percent of Firms Planning to Reduce or Increase
Marketings between 2006 and 2009
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
10
U.S. Pork Industry Structure Study, 2006
How Firms Plan to Expand 2006-09 Percent of
Firms Responding in Size Groups
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
11
How Firms Plan to Expand 2006-09Percent of
U.S. Hogs Owned by All Firms Reporting
U.S. Pork Industry Structure Study, 2006
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
12
Percent of Firms That Made a Profit in 2004
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
13
Percent of Firms That Made a Profit in 2005
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
14
Percent of Firms That Made a Profit in 2006
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
15
Percent of Firms That Started Marketing Hogs
Prior to 1975
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
16
Percent of Firms That Started Marketing Hogs 1976
to 1985
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
17
Percent of Firms That Started Marketing Hogs 1986
to 1995
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
18
Percent of Firms That Started Marketing Hogs
after 1995
U.S. Pork Industry Structure Study, 2006
Firm Size (1,000 head mktd. annually)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
19
U.S. Pork Industry Structure Study, 2006
Production Information 2006 Percent of Hogs
Affected within Size Category
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
20
U.S. Pork Industry Structure Study, 2006
Production Information 2006 Percent of All U.S.
Hogs Affected
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
21
Networking Activities of ProducersMarketing
1,000-50,000 Head Annually
U.S. Pork Industry Structure Study, 2006

Percent
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
22
U.S. Pork Industry Structure Study, 2006
Hog Operations Producing Other Commodities
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
23
U.S. Pork Industry Structure Study, 2006
Litters Sired by Artificial Insemination 1997,
2000, 2003, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
24
U.S. Pork Industry Structure Study, 2006
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.
25
Firms Finishing Canadian-born Pigs(percent of
firms responding in size category)
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
26
U.S. Pork Industry Structure Study, 2006
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.
27
U.S. Pork Industry Structure Study, 2006
How Firms Marketed Slaughter Hogs, 2006 (percent
of firms in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
28
U.S. Pork Industry Structure Study, 2006
Number of Different Packers Sold to in 2006
(percent of firms responding in size category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
29
U.S. Pork Industry Structure Study, 2006
Percent of Hogs Sold under Marketing
Contracts (percent of total marketings of size
category)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
30
U.S. Pork Industry Structure Study, 2006
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.
31
Percent of Hogs Sold on Carcass Merit Basis
U.S. Pork Industry Structure Study, 2006

Firm Size (thousand head mktd. annually)
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
32
U.S. Pork Industry Structure Study, 2006
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.
33
U.S. Pork Industry Structure Study, 2006
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.
34
Opinions on Marketing ContractsHelp Coordinate
Slaughter
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
35
Opinions on Marketing ContractsFelt They Were
Treated Fairly under Contract
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
36
Opinions on Marketing ContractsPlan To Continue
Marketing with a Contract
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
37
Opinions on Marketing ContractsShould Be More
Closely Monitored by USDA
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
38
Opinions on Marketing ContractsPrefer To Market
All Hogs on Cash Market
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
39
Opinions on Marketing ContractsHave Caused
Lower Cash Market Prices
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
40
Opinions on Marketing ContractsProducers with
Contracts Get Higher Prices
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
41
Opinions on Marketing ContractsPackers Showed
Undue Preferencein Offering Contracts
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
42
Opinions on Marketing ContractsShould Be Made
Illegal
U.S. Pork Industry Structure Study, 2006
Firm Size (thousand head mktd. annually)

Strongly disagree
Strongly agree
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
43
U.S. Pork Industry Structure Study, 2006
Percent of U.S. Hogs Raised by Firms That Are
Contractors, 1997-2006
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
44
U.S. Pork Industry Structure Study, 2006
Percent of U.S. Hogs Raised under Contract,
1997-2006
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
45
U.S. Pork Industry Structure Study, 2006
Average Length of Production Contractsin Months


University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
46
U.S. Pork Industry Structure Study, 2006
Training and Supervision Provided byContractors
to Growers(percent of firms responding in size
category)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
47
U.S. Pork Industry Structure Study, 2006
Contractors Expectations for Next 5
Years(percent of firms responding in size
category)

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
48
How satisfied are you with hog production?
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
49
How satisfied are contractors with contract hog
production?
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
50
How satisfied are growers with contract hog
production?
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
51
When Growers Began Contract Production
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
52
Grower Plans after Contract Expires
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
53
Number of Contracting Companies For Which You
Have Been a Grower
U.S. Pork Industry Structure Study, 2006

University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
54
U.S. Pork Industry Structure Study, 2006
What Do You See as the Greatest Challengesto the
U.S. Pork Industry over the Next 5 Years?


University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
55
U.S. Pork Industry Structure Study, 2006
Percent of Firms That Will Stay in Business until
2009 with Average Hog Price 43 - 45 Central
Iowa Corn Price 3.00
Firm Size (thousand head mktd. annually)

Percent
University of Missouri, Iowa State University,
Pork magazine, Pig Improvement Company, National
Pork Board.
56
Any questions?