ASF in Dominican Republic puts more emphasis on risk management
August 3, 2021 By Mark Dorenkamp Filed Under: Livestock, Minnesota, News
The discovery of African swine fever in the Western Hemisphere has heightened the importance of risk management for pork producers.
CHS Hedging director of producer brokerage Kent Beadle says ASF being as close as the Dominican Republic poses a major threat to the U.S. pork industry.
“Think about the fact that should African swine fever get to the U.S., for a period of time we are going to lose export markets. And export markets are extraordinarily important to hogs.”
He tells Brownfield prices would plummet if exports go away.
“I’ve heard people say that we might be limit down for days if not weeks if that were to occur. I’m not sure that things will be as severe as that, but when you’re looking at margins out on the curve and that potential risk is out there, why would you not try to lock down some margin.”
Brownfield interviewed Beadle at Farmfest near Redwood Falls in southwest Minnesota.
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