© Copyright 2007/2008. All rights reserved.
Picture a livestock farm in your mind. What do you see? Do you see a red barn surrounded by green pastures dotted with a handful of chickens, pigs and cows? If so, you are not the only person to imagine that nostalgic picture of how farms looked thirty to forty years ago. Today's society has become more urbanized and fewer people are familiar with agriculture and modern pork production. This transition has increased the number of consumers that require an affordable, safe and healthy food supply but has decreased the number of people producing the food. As society changes, the industries that support it must also change. The U.S. pork supply chain - from producer to processor to grocery store or restaurant - is no exception to change. U.S. pork production continues to lead agriculture in the adoption of new technologies and has achieved record productivity, exports and overall meat quality.
Pork Production Today
There were approximately 470,000 swine operations in 1982 and only 65,540 in 2006 due to the consolidation of the swine industry.1 This is no different than the consolidation that has occurred in other industries. For example, there were 292,000 new car dealers in 1958, a number that decreased to less than 20,000 by 2004. The change in size
of the U.S. pork industry can be attributed in part to fewer people choosing pork production as a career. Being a pork producer is very labor intensive because pigs require attention and care every day of the year, regardless of weather or holidays.
These neighbors working in pork production are, according to a national survey, some of the most educated people you can encounter, with over 63 percent of the producers having vocational education or two to four years of college education and 95 percent of them having completed at least high school. Among their employees you will find that 39 percent have obtained a college degree and over 14 percent of them have furthered their education to obtain a degree in veterinary medicine, a master's degree or a doctorate.2 Additionally, the cost of producing pork has increased while the cost of pork to consumers has decreased by 20 percent from 1979.3 Taking inflation into consideration, if prices had remained the same over time, pork loins that cost $0.914 per pound in 1970 would cost $2.46 per pound in 2005. In contrast, the average cost of a pork loin in 2005 was $1.17 per pound.4,5
How did the pork industry manage to decrease prices while increasing the quality and safety of its product? Through the implementation of new technologies that allowed for larger and more efficient operations. In 2006, operations with 2,000 or more head of swine accounted for 80 percent of the total U.S. swine inventory.3
Pork Production Facilities
As the structure of the industry has changed, producers have had to adjust their operations to house a larger number of pigs. One of the most adopted changes has been to house pigs in indoor, temperature controlled environments. While some pigs are still raised outside in pastures or in hoop buildings, the majority of pigs in the United States are now raised in indoor facilities. These controlled environments provide optimal temperatures for the pigs year round, reduce the risk of predation, protect pigs from exposure to parasites and diseases and allow for manure management.
Changing the Pig
In the past, lard was one of the main products used from pigs. Today's consumer wants a product that is wholesome and lean. Thanks to changes in genetics, pork is one of the leanest meats that can be found in the meat case. Pigs today have approximately 75 percent less fat than pigs in the 1950s and 0.75 inches of back fat compared to an average of 2.86 inches in 1950.6 Improved reproductive technologies and changes in genetics have allowed the modern U.S. pork producer to produce pigs that grow faster and efficiently to create pork products that are more uniform in color and taste and healthier for the consumer.
Economic Contribution of the Pork Industry
Pork production in the United States plays an important role in the economy. Nearly 19 billion pounds of pork are processed from about 100 million hogs each year. The economic impact of the industry on rural America is immense. Annual farm sales typically exceed $11 billion, while the retail value of pork sold to consumers reaches $38 billion each year. Pork provides employment well beyond the farm. The U.S.
pork industry generates more than $72 billion in total domestic economic activity. In addition, the pork industry supports more than 800,000 jobs and adds more than $27 billion of value to basic production inputs such as corn and soybeans.7 Internationally, the U.S. pork industry has had positive net exports
since 1995, and since 2000 net exports have increased by more than fivefold.8 In 2006 alone, the U.S. exported $2.4 billion dollars worth of pork products.9
Modern Pork Production
Pork producers compete in an increasingly complex business arena and continue to face intricate challenges. Environmental care and protection, animal care and well-being, urban development pressures, employee management, marketing decisions, and financial management are all top-of-mind issues for the modern pork producer. Production operations of all sizes and types must be dedicated to raising a high-quality and safe food product - and do so in an environmentally friendly and socially responsible manner. Clearly, the industry's future will be determined by its ability to operate profitably and expand while meeting society's expectations.3
Endnotes
1 USDA, NASS, chart "Number of Hog Operations", http://www.nass.usda.gov/Charts_and_Maps/Hogs_and_Pigs/hgoper_e.asp
2 A Look at the Employment in the United States Swine Production Industry, Iowa State University, http://www.ans.iastate.edu/report/air/2006pdf/R2168.pdf.
Accessed Oct. 10, 2007.
3 Pork Checkoff, Quick Facts, http://www.pork.org/newsandinformation/quickfacts/intro.aspx
4 USDA, ERS, "wolesaleprices.xls", http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1354
5 U.S. Department of Labor, Inflation Calculator, http://www.bls.gov/cpi/
6 USDA, NASS, Farms, Land in Farms, and Livestock Operations:2006 Summary, http://usda.mannlib.cornell.edu/usda/current/FarmLandIn/FarmLandIn-02-02-2007.txt
7 Waste Reduction Resource Center, http://wrrc.p2pays.org/p2rx/subsection.cfm?hub=602&subsec=10&nav=10&CFID=429084&CFTOKEN=86070746
8 USDA, ERS, Briefing Room, Hogs: Trade, http://www.ers.usda.gov/Briefing/Hogs/Trade.htm#top
9 USDA, ERS, FAS, Outlook for U.S. Agricultural Trade http://usda.mannlib.cornell.edu/usda/ers/AES//2000s/2007/AES-05-31-2007.pdf
Pork Production Today
There were approximately 470,000 swine operations in 1982 and only 65,540 in 2006 due to the consolidation of the swine industry.1 This is no different than the consolidation that has occurred in other industries. For example, there were 292,000 new car dealers in 1958, a number that decreased to less than 20,000 by 2004. The change in size
of the U.S. pork industry can be attributed in part to fewer people choosing pork production as a career. Being a pork producer is very labor intensive because pigs require attention and care every day of the year, regardless of weather or holidays.
These neighbors working in pork production are, according to a national survey, some of the most educated people you can encounter, with over 63 percent of the producers having vocational education or two to four years of college education and 95 percent of them having completed at least high school. Among their employees you will find that 39 percent have obtained a college degree and over 14 percent of them have furthered their education to obtain a degree in veterinary medicine, a master's degree or a doctorate.2 Additionally, the cost of producing pork has increased while the cost of pork to consumers has decreased by 20 percent from 1979.3 Taking inflation into consideration, if prices had remained the same over time, pork loins that cost $0.914 per pound in 1970 would cost $2.46 per pound in 2005. In contrast, the average cost of a pork loin in 2005 was $1.17 per pound.4,5
How did the pork industry manage to decrease prices while increasing the quality and safety of its product? Through the implementation of new technologies that allowed for larger and more efficient operations. In 2006, operations with 2,000 or more head of swine accounted for 80 percent of the total U.S. swine inventory.3
Pork Production Facilities
As the structure of the industry has changed, producers have had to adjust their operations to house a larger number of pigs. One of the most adopted changes has been to house pigs in indoor, temperature controlled environments. While some pigs are still raised outside in pastures or in hoop buildings, the majority of pigs in the United States are now raised in indoor facilities. These controlled environments provide optimal temperatures for the pigs year round, reduce the risk of predation, protect pigs from exposure to parasites and diseases and allow for manure management.
Changing the Pig
In the past, lard was one of the main products used from pigs. Today's consumer wants a product that is wholesome and lean. Thanks to changes in genetics, pork is one of the leanest meats that can be found in the meat case. Pigs today have approximately 75 percent less fat than pigs in the 1950s and 0.75 inches of back fat compared to an average of 2.86 inches in 1950.6 Improved reproductive technologies and changes in genetics have allowed the modern U.S. pork producer to produce pigs that grow faster and efficiently to create pork products that are more uniform in color and taste and healthier for the consumer.
Economic Contribution of the Pork Industry
Pork production in the United States plays an important role in the economy. Nearly 19 billion pounds of pork are processed from about 100 million hogs each year. The economic impact of the industry on rural America is immense. Annual farm sales typically exceed $11 billion, while the retail value of pork sold to consumers reaches $38 billion each year. Pork provides employment well beyond the farm. The U.S.
pork industry generates more than $72 billion in total domestic economic activity. In addition, the pork industry supports more than 800,000 jobs and adds more than $27 billion of value to basic production inputs such as corn and soybeans.7 Internationally, the U.S. pork industry has had positive net exports
since 1995, and since 2000 net exports have increased by more than fivefold.8 In 2006 alone, the U.S. exported $2.4 billion dollars worth of pork products.9
Modern Pork Production
Pork producers compete in an increasingly complex business arena and continue to face intricate challenges. Environmental care and protection, animal care and well-being, urban development pressures, employee management, marketing decisions, and financial management are all top-of-mind issues for the modern pork producer. Production operations of all sizes and types must be dedicated to raising a high-quality and safe food product - and do so in an environmentally friendly and socially responsible manner. Clearly, the industry's future will be determined by its ability to operate profitably and expand while meeting society's expectations.3
Endnotes
1 USDA, NASS, chart "Number of Hog Operations", http://www.nass.usda.gov/Charts_and_Maps/Hogs_and_Pigs/hgoper_e.asp
2 A Look at the Employment in the United States Swine Production Industry, Iowa State University, http://www.ans.iastate.edu/report/air/2006pdf/R2168.pdf.
Accessed Oct. 10, 2007.
3 Pork Checkoff, Quick Facts, http://www.pork.org/newsandinformation/quickfacts/intro.aspx
4 USDA, ERS, "wolesaleprices.xls", http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1354
5 U.S. Department of Labor, Inflation Calculator, http://www.bls.gov/cpi/
6 USDA, NASS, Farms, Land in Farms, and Livestock Operations:2006 Summary, http://usda.mannlib.cornell.edu/usda/current/FarmLandIn/FarmLandIn-02-02-2007.txt
7 Waste Reduction Resource Center, http://wrrc.p2pays.org/p2rx/subsection.cfm?hub=602&subsec=10&nav=10&CFID=429084&CFTOKEN=86070746
8 USDA, ERS, Briefing Room, Hogs: Trade, http://www.ers.usda.gov/Briefing/Hogs/Trade.htm#top
9 USDA, ERS, FAS, Outlook for U.S. Agricultural Trade http://usda.mannlib.cornell.edu/usda/ers/AES//2000s/2007/AES-05-31-2007.pdf
Download the PDF here!
Information provided by: National Pork Board
