Structure and organization comparisons of U.S. large volume swine producers : a national survey
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A national sample of hog operations marketing 1,000 head or more a year was taken in 1981. A mail questionnaire gathered the necessary information. A second survey grouped operations into three groups: feeder pig producers, pig finishers and farrow to finish operations. Hog and pig production is becoming increasingly concentrated. This study documents the trends in structure and their relationship to marketing and production practices and other aspects of the industry. Many characteristics were found to be positively associated with size, such as: the proportion of incorporated farms, the proportion of specialized pig production or pig finishing units, the degree of confinement of facilities, the proportion of hogs marketed direct to the packing plant, the proportion of hogs marketed at set times (such as every Wednesday), the proportion of slaughter hogs priced according to some agreed formula, and the proportion of slaughter hogs sold on carcass weight. Large producers (5,000 head or more marketed annually) of feeder pigs were studied in detail concerning organization, breeding stock acquisition practices, and marketing practices. Many specialized producers of feeder pigs are farrowing corporations owned by a small group of pig finishers. Specialized finishers of pigs were also studied in detail. Their various sources of pigs and the perceived advantages/disadvan- tages of these sources were developed. One of the most impressive features of these medium and larger hog production units has been their persistent growth. Nearly two-thirds of the units reported that their marketings in 1980 were larger.than in 1978. A majority of operations believed there were economies in further growth. They perceived these advantages as associated with several factors including better utilization of labor, capital and management, discounts in buying inputs, and better market prices.
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