High feed costs strain hog operations
High feed costs have strained many hog operations this year.
Compeer Financial director of swine lending Steve Malakowsky says elevated corn and soybean prices are impacting profitability.
“It really hasn’t been a revenue issue, it’s been more of a cost issue. Which we hope is going to be rectified with the higher crop yields in 2023 potentially with corn and soybeans.”
He tells Brownfield a Compeer database of 20 companies shows how difficult the year has been for the industry.
“Year to date through the second quarter of 2023, we have about just under a $21 per head loss for the year. Most operations have lost money through 2023, which has impacted their financial statements as well.”
Malakowsky says one way pork producers are managing high feed costs is by hedging corn and soybean meal when possible.
He made these comments during an upcoming Compeer What’s Happening podcast, a content partnership with Brownfield Ag News.