Stealing a page from the Cooperatives Working Together program, a group of pork producers is proposing a similar buyout program for U.S. farrowing operations.
Unlike dairy and beef producers, farrowing operators are unable to sell breeding sows to other operations because of disease concerns. So when they sell sows, they must sell them for slaughter at prices much below breeding value. At the same time, farrowing buildings are usually single-purpose buildings that cannot be easily converted to other uses. As a result, farrowing operators are reluctant to idle facilities because financial losses are often too large.
Participating producers would contribute $20 per sow to the Producer Retirement Program. Herds agreeing to the buyout would idle their facilities for at least two years. For more information on the program, go to: http://www.agweb.com/get_article.aspx?src=gennews&pageid=151470
