Farm Journal's PORK columnist Kent Bang of Compeer Financial shares his take on the 2020 pork outlook and says producers should work to drive down costs by managing risks associated with price volatility.
Profitability has been challenging the past 12 months. Better export expectations and sales have encouraged market prices higher, but plants have been operating at capacity pressuring market prices downward.
Price and basis management hold the keys, says Kent Bang of Compeer Financial.
Fluctuations in cash hogs, the pork cutout and the futures market have many producers wondering how long this volatility will last. Money Matters columnist Kent Bang believes it will be for some period of time.
Kent Bang encourages swine producers to take a closer look at production costs in 2019.
Many pig farmers have built working capital and equity over the past five years and are in a good position to withstand some adversity. Some producers might be in a tougher position.
Evaluating what makes our production system globally competitive can also be important to the individual farm and future success. Here are some thoughts on how we got here and how we move forward in the years to come.