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"It was the best of times, it was the worst of times . . ., it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us . . ." These words from Charles Dickens' A Tale of Two Cities that describe the period of the French Revolution from 1789-1793, are in many ways indicative of our own current dilemma.
On the one hand we have people who work in every other sector of the economy (including agribusiness) experiencing a period of unrivaled growth in income and net worth. This wealth is being used to purchase luxuries such as family vacations and sports utility vehicles, and generates talk of "early retirement".
At the same time, grain and livestock farmers face the worst economic hardships since the Great Depression. Farmers who only a short time ago spoke of expansion to meet the "increasing demand" for pork products, now face the dismal prospect of going out of business, or spending the next several years merely trying to work themselves out of debt. Continued large numbers reported among the nations swine herd do not offer the likelihood of making significant profits on pigs sold through the conventional system anytime in the near future.
However, for some farmers this era of upheaval offers hope for the future. Changes in consumer demands are creating new and expanding avenues for marketing pork, with other potential markets still untapped. With greater frequency, consumers are "voting" by spending their dollars in ways that only a short time ago could hardly be imagined. Consumers are expressing their concern about issues such as the environment, animal welfare, locally owned versus corporate, and "community friendly" production systems, through the purchase of meat and other products direct from farmers whose production methods reflect consumer values.
This activity has been enhanced because of changes in regulatory statutes that govern meat processing, that were brought into fruition during the past year. Essentially, it is now feasible for a farmer to have a local state- certified butcher process the meat, and then the farmer can sell the meat directly to a consumer at a price negotiated between just the two parties involved. The layers of handling and processing have now been removed, so that as the retailer, the farmer has direct contact with the end buyer, the consumer.
This is an experience far-removed from the past, when the producer only thought in terms of production, and tended to focus on least-cost options. Now the market-oriented farmer needs to think in terms of the end result. That is, which consumer am I trying to please with my product? This is the beginning of a new era in the pork industry, with farmers who respond to "designer markets" (instead of niches), very likely showing nice profits through the foreseeable future.
Will all hog farmers benefit from this "revolution" in marketing? Probably not. First of all, not all people are cut from the same mold. Many producers would rather pull weeds in the most-hidden corner of the farm than try to sell food they raised to consumers. It takes the right personality, along with a little courage, to call a store manager, set up a meeting, and then promote your own "product line".
Secondly, this market, like any other, will change over time. Producers who decide to market their own products will need to continually adapt to ever-changing market realities. Competition will eventually become a factor.
Finally, will direct marketing of a few (even a few hundred) hogs per year help those farmers who are in debt thousands, or hundreds of thousands of dollars? Unlikely. All hog farmers, especially those heavily burdened with debt, will benefit from the development of farmer-owned cooperatives that process and market the meat they grow.
It seems that there are no quick fixes, no easy way out. However, for those hardy souls who have the option and are willing to take the risk, direct marketing of pork offers a way to develop a new business right on your own farm, and increase your profitability significantly. It was never truer that "the world is your oyster (pork chop?)". May your future be "the best of times . . ." |