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Slide 1
A Time to Remember
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Breed to wean facilities
• Breeding
• Gestation
• Farrowing
• Unit size
• Pig flow
Wean to Finish
•Feeder design
• Crate design
• Flooring
• Ventilation
• Manure handling
• Supplemental heat
• Controls and data reporting
Integrating Design and Technology
•Sort barns
• Large pen design
• Double wide
• Quad barns
• Bio-Security and pig flow
• Remote control and recording of:
•Ventilation, water, feed,
temperature, pig activity
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Genetic Changes
• Sow Productivity
• Longevity
• Piglet growth rate in lactation
• Growth Rates
• Feed conversion
• Carcass composition
• Lean gain and conversion
• Uniformity
• Pork Quality
• Heat tolerance/seasonal consistency
• Target end weights
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Delivering Nutrition
• Ingredient options
• Nutrient requirements
• Barrows, gilts, boars
• Lean growth rates
• Seasonal variation
• Manure composition considerations
• Micro nutrients
• Feed additives
• Feed budgets
• Nursery
• Finishing
• Sows
• Manufacturing
• Delivery of feed
• Performance targets
• Profitability targets
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Table 1. Top 30 US Pork Production Companies
Rank NAME OF OPERATION
1
Smithfield Foods
922,251
Est Market
Pigs
18,445,020
2
3
4
5
6
7
Seaboard Foods
Christensen Farms
Iowa Select Farms
The Pipestone System
The Maschhoffs
Prestage Farms
213,600
162,500
152,500
132,000
130,000
125,000
4,272,000
3,250,000
3,050,000
2,640,000
2,600,000
2,500,000
Mkt Cummulative Packers
Share Mkt Share
17.6%
Smithfield, Farmland,
17.6%
John Morrell
4.1%
21.6%
Seaboard
3.1%
24.7%
Triumph, JBS Swift
2.9%
27.6%
JBS Swift
2.5%
30.1%
JBS Swift, Tyson
2.5%
32.6%
Cargill, Hormel
Smithfield,
Farmland,
2.4%
35.0%
John Morrell, JBS Swift
8
Cargill
116,000
2,320,000
2.2%
9
10
11
12
Carthage System
AMVC Management
Hanor
Maxwell Foods
(Goldsboro)
Hormel Foods (M2P2)
PST Progressive Swine
Technologies
Tyson Foods
New Fashion Pork
Country View Family
Farms
Nebraska Pork Partners
85,000
82,000
80,000
69,000
1,700,000
1,640,000
1,600,000
1,380,000
1.6%
1.6%
1.5%
1.3%
54,000
53,200
1,080,000
1,064,000
1.0%
1.0%
52,000
48,000
46,500
1,040,000
960,000
930,000
1.0%
0.9%
0.9%
44,500
890,000
0.8%
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Wakefield
Holden Farms
Texas Farms
TriOak Foods
Schwartz Farms
M2P2
Swine Graphics
Hog Slat (TDM)
Garland Farm Supply
Eichelberger Farms
JC (Carolina) Howard
Hitch Pork
Total
SOWS
40,500
810,000
40,000
800,000
40,000
800,000
35,000
700,000
30,000
600,000
27,400
548,000
24,100
482,000
23,000
460,000
23,000
460,000
23,000
460,000
22,000
440,000
15,000
300,000
2,951,051 59,021,020
0.8%
0.8%
0.8%
0.7%
0.6%
0.5%
0.5%
0.4%
0.4%
0.4%
0.4%
0.3%
55.4%
States
IA, MO, AK, OK, MN
IL, IA, IN, MO
IA, MN, SD, NE
IL, WI, OK, TX, NC
43.2%
44.3%
Cargill
Cargill, Triumph
Hormel, Tyson
Triumph, Seaboard
Smithfield, Indiana
Packers
Hormel
45.3%
46.3%
47.2%
Tyson
Tyson
Triumph
NE, IA
AK, OK, MO, IN
MN, SD, IA
48.1%
Hatfield
PA, OH, IN
48.9%
49.7%
50.4%
51.2%
51.9%
52.4%
53.0%
53.4%
53.9%
54.3%
54.7%
55.2%
55.4%
Smithfield (Farmland)
JBS Swift
Tyson
Tyson
Cargill
JBS Swift
Hormel
Tyson
Indiana Packers
Smithfield
Triumph
Smithfield
Seaboard
NE, IA
MN
MN
TX, IA
IA, IL
MN
IA, CO, OK, NC
IA
NC, IN
NC, SC, KS, IA
IA
NC
OK
37.2%
38.8%
40.4%
41.9%
NC, VA, IA, MO, OK,
TX, CO, UT
OK, TX, KS, CO
MN, SD, NE, IA
IA, MN
IL, IA, IN, MO
NC, MS, IA
NC, IN
AZ, IA, MN
Table 3: Top 10 US Pork Packers and Processors
1
2
3
4
5
6
7
8
9
10
NAME OF
OPERATION
Smithfield Foods
Plants
Mkt Share
9
Annual
Harvest
30,942,000
Tyson Foods
JBS Swift
Cargill Meat
Solutions
Hormel
Seaboard
Triumph Foods
Indiana Packers
Hatfield Quality
Meats
6
3
2
18,798,000
11,960,000
9,360,000
18%
11%
9%
3
1
1
1
1
9,568,000
4,100,000
4,100,000
3,900,000
2,600,000
9%
4%
4%
4%
2%
Routh Packing
Total
1
900,000
1%
28
96,228,000
92%
29%
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Pork Industry Regulation
•
•
•
•
•
•
•
Waste handling
Air quality
Worker safety
Animal welfare
Antibiotic use
Free trade
ID – COOL
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Nursery Disease Challenges
-20 years ago
- Today
NAHMS - USDA
NAHMS - USDA
Wean to Finish Disease Challenges
-20 years ago
- Today
NAHMS - USDA
NAHMS - USDA
Common Practices
NAHMS - USDA
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
Consumer Demand
Consumer Spending
In terms of in store profitability, pork segments are key
Profit per pound advantage vs. average
meatcase item
154%
103%
71%
63%
47%
29%
25%
13%
Pork Value
Added
Pork
Tenderloins
Chicken
Value
Added
Beef Value
Added
26
Source: National Pork Board Retail Composite Database 2005
Beef
Steaks
Bonless
Pork Chops
Ground
Beef
Boneless
Chicken
Breasts
Consumer Spending
Bacon accounts for nearly
half of all pork items on menus
Distribution of menued pork items at same operators
Pepperon
i
Breakfast Sausage 8.2%
Sausage
7%
Ribs
2.3
%
12.9%
Pork Chops, Loins, Tenders
4.1%
Bacon
46.2%
28
Source: MenuMine 2005
Ham (Sliced, Unsliced)
19.2%
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
The Most Significant Industry Changes
Over the Last 20 Years
1. Production facilities
2. Genetics
3. Nutrition
4. Industry structure
5. Export markets
6. Regulation
7. Disease challenges
8. Consumer mind-set
9. Activist groups
10. New Technology
New Technology 20 Years Ago
A time to remember
• 1990 - ???
– Plasma for nursery diets
– Synthetic amino acids
– Vaccines?
– Medication?
– Split sex feeding
– Genetics
– Production Systems - SEW
What Technology is Needed?
• Top needs……..
• Biggest gaps…….
• Biggest opportunities…….
• Records and
data systems
• Health challenges
• Nutrition
• Genetics
• New targets
Thank you!
Fly UP