There are several things that swine producers are currently watching.
California’s Proposition 12. One of the top things is the California Proposition 12. As Prop 12 becomes implemented the rules will change for pork sold into California. Mostly, it is a requirement for pen gestation and space allowance. Most producers in Northwest Iowa would like a choice in how they raise their animals. There is no perfect system, but tradeoffs regarding welfare. With pen gestation, for example, you will typically see more sow aggression toward each other, especially during mixing and feeding periods. Alternatively, putting a sow in a crate is not a perfect system either.
Prop 12 was supposed to be implemented already; however, a court case in California delayed the implementation because the rules are not complete. Currently, the Supreme Court will decide if Prop 12 can be implemented, changing the way we raise pigs in Iowa. If implemented, the cost of changing production systems to legally sell pork into California is high and increasing. Cost of construction has gone up more than other areas of the economy as the cost of steel and lumber increases.
Feed Costs. In addition to increases in construction costs, feed costs have also gone up substantially. What may seem like a high market price for pigs, in reality only has a small margin because the cost of production increases in feed, energy, facility, and labor.
Labor Shortage. Feed costs are not the only issue. Many operations are short-handed and looking for more help. The issues with lack of labor include stress from long hours and drop in output as well as packing plant output struggles related to not having a full staff.
African Swine Fever (ASF). Producers are also looking at the spread of African Swine Fever around the world, most recently in the Dominican Republic within 100 miles of our country. Making plans for the possibility of a foreign animal disease is important for limiting the economic impact of the disease. Producers should track in and out movements of pigs, supplies and people, and understand the movement stops and permits needed during a potential outbreak.
Some emergency planning for humane euthanasia and mortality disposal can help producers make difficult decisions. Workshops are being scheduled for late-Summer to help producers prepare for a potential outbreak.