The long-anticipated summer months have come and, apparently, gone. As of this writing on Aug. 21, I was caught off guard last week when my wife informed me that our kids would be returning to school in just a couple of weeks. This year, summer seems to have been a sprint. During these months, we've witnessed strong and much-needed margins for pork producers. Balance sheets have begun to heal, deferred maintenance is being addressed, and strategic improvements to operations are being made—hopefully in that order.
Given how quickly time passes, now is an excellent opportunity to think about and plan for what lies ahead. The forward curve looks promising, with the next 12 months representing a projected profit of $28+/head as of today. Notably, Q4 2025 and Q1 2025 margins are at or above $10/head. At the risk of sounding like a conservative lender (which I admittedly am), producers should consider reducing risk by locking in some of these margins. As always, consult your advisory team to determine the best approach for your business. In today's world, change and volatility are too real to ignore these opportunities.
Additionally, consider non-monetary processes or minimal investments you can make in your operation. Do you have a strategic planning process or a long-term vision for your business? What do you want your business to be when it grows up? What is your five-year business plan to achieve that vision? How will you leverage technology in the future? Are you looking at technology to leverage your data? Have you started using free AI tools or minimal subscription services to enhance efficiency in your role? Experience is the best teacher. While I'm not an early adopter by any means (I still have a VHS player somewhere), I've recently started familiarizing myself with these technologies, and they can be quite impressive— and disappointing at others, reminding us they are still in the development phase.
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