Winter 2011 Feed Update

• Published On:1/23/2012
• Author:Jenna Manske
• Categories:Feed, Admin

PREPARING FOR 2012
Every year has its challenges and the 2011 season was no different. The livestock and grain farmer face the same challenges year to year, with the difference being that the livestock farmer wants lower input costs and the grain farmer wants higher grain prices. It is more important than ever to watch your cost of production and lock in profi ts wherever possible. We now live in such a global environment that even a hint of the European Union or the Chinese market place having financial diffi culties can send our markets into a tail spin. These ever changing times require that you, the producer, and we, the cooperative, adapt to these ever changing times.

The per capita consumption of meat continues to head down. Total consumption of the four major species was projected to be 206lbs. per person this year, which is down 6% from the year earlier. In 2012, meat consumption is projected to be only 202lbs. per person, which is 1.6% less than 2011. This continued downward trend is primarily driven by the lower quantities of product that have been available to U.S. consumers. The lower availability leads to higher prices, as long as demand remains relatively constant. With the possibility of $7.00 corn and a $350 meal, we cannot afford to bring enough products to the market to keep prices low. Lower U.S. per capita meat supply exports will potentially push hog prices to what could be a record high in 2012. However, with pressure on grains and soybean meal, feed prices may be kept from rising signifi cantly. High hog prices and reasonable feed prices could mean some potentially good margins for 2012.

HEADING INTO THE WINTER MONTHS
Last year our trade area experienced a number of roof collapses due to excessive snow loads. The collapse of one building doesn’t mean all buildings on the farm are in danger. There are a few factors which affect the amount of snow that can build up on a roof. Roof pitch, (snow will not slide easily off of fl atter roofs of 3/12 slope or less) and drifting with snow blowing around other buildings and trees can create large snow drifts and uneven snow loads. You should consider setting up a snow fence or shelter belt (such as trees) to help block your farmstead from excessive snow accumulation. You should remove snow if there is more than four feet of dry snow or more than two feet of heavy, wet snow and ice on the roof.

Crystal Valley would like to ask any patron receiving feed deliveries to clear your sites of signifi cant snow so our trucks can continue to efficiently deliver feed. After clearing snow from a signifi cant snowfall, please call your mill to notify them that the route has been cleared and feed can safely be delivered.

Thank you for your patronage this past year and have a safe and joyous holiday season.