November 2, 2010

 

US hog feed prices hike

Hog feed prices have risen above US$5 a bushel, an increase of around US$2 from a few months ago, said Jeremiah Jones, president of the North Carolina Natural Hog Growers Association.

 

But, he said, a similar hike in 2008 resulted in some belt-tightening, but proved survivable. "That time corn went to US$7, it stayed up for quite a while. We rode it out," he said.

 

The owner of Onslow Feed and Grain, Elsie Jones, said she has had to raise prices on feed about a dollar per 50-pound bag and wouldn't be surprised to see them go up another dollar in coming weeks. While most animal farmers in Onslow County are contracted growers who don't have to pay out-of-pocket for feed, she said she hears regular complaints from locals with smaller farms or backyard animals.

 

"They're saying, 'We're going to have to get rid of our animals,'" she said.

 

High feed prices across the country are a result of a markedly poor corn harvest that hit hard in Onslow: Melissa Evans, field crops agent at the Onslow County Cooperative Extension, said some regions saw yields of 35-40 bushels per acre instead of the typical 120 to 190-bushel yields.

 

A livestock agent at the Duplin County Cooperative Extension, Amanda Hatcher, said she has heard some farmers come up with creative solutions to stretch precious feedcorn.

 

"Some of the things the other farmers are doing is they're looking at alternatives to corn. Instead of 100 pounds of corn, they'll buy 75 pounds of corn and they're supplementing that with canola and wheat," she said.

 

Hatcher said others have tried to join co-ops and buy in bulk at cheaper prices. Many are waiting and watching the market before moving forward with farm expansion.

 

"It's certainly not what we saw a couple years ago, but it's high enough that it's beginning to make people think about how much they can get out of that animal if they continue to feed it US$4 a bushel corn," she said.

 

With the threat of feed prices continuing to rise, Jeremiah Jones said farmers at his co-op had no choice but to pass those costs on to consumers.

 

"It's one of those things that we have to ride it out for a little bit. But when farmers are going out of business, that's when we sit down with buyers," he said.