Let’s Get Real About the Challenges Facing the Pork Industry
Unclear. That’s how Heidi Vittetoe, co-owner of JWV Pork in Washington, Iowa, would describe her outlook on the pork industry.
“The elephant in the room right now is profitability, certainly,” Vittetoe says. “This has been a difficult six months, and it doesn’t look like it’s done being difficult yet. We have a ways to go to find equilibrium between feed prices and the price of livestock.”
Matt Romoser, purebred swine breeder and swine field Extension specialist for Iowa State University Extension, agrees it’s easy to get discouraged in the short-term.
“You look at profitability and breakevens for the rest of 2023 and it's pretty bleak. Currently, profits are anywhere from -$30 to -$40 per head,” Romoser says. “But I think when you look at historical data, the industry goes through so many ebbs and flows from a profitability standpoint. We haven't seen numbers or losses similar to this since probably back in 2012, but then we saw record profits in 2014.”
It’s Time to Be Honest
Not everybody's in the “pep club,” Vittetoe points out. She believes it’s critical to provide clarity about the current economic situation.
“It's been a lot like, ‘Get the fiddle, Rome's on fire here.’ I don't know if that has gotten said widely enough. If you're a grain farmer, nothing has changed. And up until recently, you're still getting a good price for your grain. If you're a landlord, you're still getting a good price for your land rent. Owners of pigs have been feeling the brunt of this. I think there's a lot of unawareness, even in Washington, Iowa, of the magnitude of this difficulty the industry is going through right now.”
She’s been raising hogs since 1980 with her husband, Jerome. They have about 12,000 sows in Washington County and 1,500 sows in Davis County. Recent hog prices, coupled with higher feed costs in less corn-productive areas, have led them to reduce their sow herd by about 10%.
Heidi Vittetoe says, "Owners of pigs have been feeling the brunt of this. I think there's a lot of unawareness, even in Washington, Iowa, of the magnitude of this difficulty the industry is going through right now."
Will History Repeat Itself?
Washington County, Iowa, has historically been one of the top pork-producing counties in the country.
“It is a friendly place to raise pigs. We have a lot of corn. We have a lot of infrastructure here. We have a good labor base. That's why we have the pigs, because it's an accepting area to raise them,” says Matt Gent, owner of Prairie Pork in Wellman, Iowa.
Gent is a third-generation pig farmer. He is part of his family’s 5,000-sow, farrow-to-finish operation that also raises some extra wean pigs and farms row crops. He serves on the Washington County Pork Producers Association board of directors and is president-elect of the Iowa Pork Producers Association.
“Because of the number of pigs in this area, it gets more challenging every day to keep our barns clean and healthy, but we do our best. We're doing a lot more than we ever did with filtration systems and biosecurity,” Gent says.
Despite the uncertainty in the pork market now, Gent is excited about the future of the pork industry.
“I think long-term, the demand is going to be strong for economical protein. And that’s what we are. Beef prices are extremely high. Long-term, we can beat that. The economy is not as good as it used to be, and people are looking for an economical piece of meat,” Gent says.
Matt Gent says, "We’ve got to make raising pork fun. That's what the young generation wants it to be."
Labor Retention in the Pork Industry
The current economic turmoil is a hard reality to face – not only in how it impacts the farm, but also the employees who are keeping the farms going.
“I think about it a lot,” Vittetoe says. “What happens if this economic situation doesn’t get resolved in a favorable way? What does it mean when X number of people lose their jobs, or our schools don’t have as many kids in the seats? To me, that’s the tipping point where you begin to see why an industry moves out of a certain area.”
In the tight economic situation, labor retainment is even more important.
“As we look out 10 to 15 years from now, I think something that's a challenge is getting more people into the business," Romoser says. "There are obviously lots of different ways to enter the business, but even still, it's becoming a more capital-intensive workplace to enter.”
As the workforce of owners and operators ages, and how pending legislation fares, he’s concerned about how many people may phase out of the pork industry in a few years.
“I think you've got to be able to replace those people with young people who are enthusiastic,” Romoser says. “I think that's a bit of a barrier that we have to face here in the next decade or so.”
As a farm owner, Vittetoe strives to demonstrate an active presence and participation in what is being done on her family’s farm.
“I think people would tell you that we are very present on our farm. We have our good days and bad days,” Vittetoe says. “But everybody is working together – whether that's owners, growers or employees – everybody is working together with a common goal. It's difficult in the current environment to keep your enthusiasm. So, in that regard, we have to buoy each other up because we can also drag each other down in this negative profitability environment.”
Making employees feel like they have ownership in the farm helps make a good pork production team, Gent agrees. The industry also needs to keep the priority of attracting the younger generation top of mind.
“We’ve got to make raising pork fun. That's what the young generation wants it to be. They want flexibility. They don't want it to be factory work. They want it to be a career where they enjoy what they do as much as the guy that owns the pig,” Gent says.
He says it starts with a good, clean facility to work in.
“Nobody wants to work in an old dungeon, and sometimes that's hard to do. We have to build new facilities to do that and update them – all that costs money,” Gent says. “But we’ve got to remember the value of making the team feel comfortable at work. We also strive for people to have fun at work and get along and just enjoy what they do.”
Matt Romoser says, "As we look out 10 to 15 years from now, I think something that's a challenge is getting more people into the business."
Remember Why You Do What You Do
Although it’s bleak now, Romoser thinks it’s important for producers to stay optimistic.
“This industry changes very quickly and very rapidly. Keep your head on a swivel and try to stay as positive as possible right now,” he says.
While Vittetoe has a heart for pork production, she has a much bigger heart for people. That’s why she does what she does, and that is what helps her get through tumultuous times in the pork market.
“I have a lot more heart for what comes after this life and keeping mindful of that is really important during difficult times. It is important to value and appreciate the group of people we have working with us,” she says. “I hear so often about pork farms leaving a certain area because they can’t find enough people to work. That’s a shame, because those people who understand the value of hard work as it relates to their own personal success are what make a community like Washington, Iowa...Washington, Iowa.”
We will be uniting together June 5-11 for PORK Week across all of our Farm Journal platforms to elevate the important role the pork industry plays in feeding the world. Share your stories and post photos on social media using #PORKWeek23 to help us honor the pork industry. From “AgDay TV” to “AgriTalk” to “U.S. Farm Report” to PorkBusiness.com and everything in between, tune in and join us as we acknowledge the most noble profession there is: feeding people.
Read More:
Pork Producers Provide Perspective for Lawmakers
Girl on Fire: Paizlee Hardin’s Return to the Show Ring
Want to Drive Pork Demand? Fish Where the Fish Are
Rural Revival: Why 3 Pig Farmers’ Wives Quit Teaching and Bought a Coffee Truck
What’s Top of Mind for Swine Veterinarians in 2023?
5 Ways to Attract Youth to the Pork Industry
Pork Producers Face a Bleak Profitability Picture
The 'Unfunded Mandate' and Three Perplexing Realities Of Prop 12
