Hog and turkey producer Prestage Farms Inc. and two other livestock companies have signed deals for 750,000 metric tons (MT), or nearly 30 million bu., of Brazilian corn, according to John Prestage, senior vice president of Prestage Farms.
The purchases were made jointly by Prestage Farms, Murphy-Brown LLC (a subsidiary of Smithfield Foods Inc.) and poultry company Nash Johnson & Sons’ Farms Inc. — partners in Wilmington Bulk LLC.
Prestage says the companies are trying to buy more corn and other feedgrains from South America and other sources amid tight U.S. supplies and the high costs of moving grain via rail into the Southeast.
Perspective: This will relieve some of the supply stresses in the North Carolina market, but the imports don’t solve the supply-side problems for the 2012-13 marketing year as USDA already predicts imports of 75 million bu. in the 2012-13 marketing year.