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It’s a profitable time for pork producers

Steve Meyer, Paragon Economics

For pork producers that weren’t hit with the Porcine Epidemic Diarrhea virus, 2014 has been one of the most profitable years on record.  But what about farms that were hit with PEDv?

Paragon Economics president Steve Meyer says, “Even those that have been hit with PEDv – the corn cost are going to go down that next year producers are still going to make a lot of money.  This is going to be the best two year period we’ve ever had.  I don’t think there is any question about that.”

So how long with pork producers see this kind of profitability?

Meyer says not very long.  “There is no barrier to entry in this business or expansion to speak of,” he says.  “What we’re going to do – is there is a very strong incentive to build the sow herd.  We’ve already started.  I think that will pick up steam now that we see there we have 14 billion plus bushels of corn and almost 4 billion bushels of beans.”

He tells Brownfield had producers not been trying to fight PEDv last winter – there likely would have been significant expansion in the pork industry a year ago.

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