UNITED STATES-A POORK PROCESSORS VEIW OF THE FUTURE.
Alessandro Bassanini, general manager of Country View Family Farms, spoke to pork producers and industry representatives Tuesday at the Pennsylvania Pork Producers’ 31st annual Keystone Pork Expo at Yoder’s Country Market.
After sharing about his early years growing up on a general farm in Italy, Bassanini spoke about events leading to his current position and addressed the challenges and future of successful pork production in Pennsylvania.
"I started or managed hog farms in many different states and I was exposed to many different production systems and seen a lot of things," said Bassanini, who holds a degree in agricultural economics from Purdue University. "What I am about to tell you is my opinion. Yours may be different and that’s all right, however, this is how I see things ...
"The current feed price situation is ruthless and the bottom line can only be described as cruel. I have seen many hog cycles and this is an ugly one," Bassanini said, predicting record losses in the industry.. "Pennsylvania ranks 12th among the states in hog production. We raise hogs in 11 states and why should we be in Pennsylvania? Pennsylvania doesn’t have any advantages because of demand, quality, efficiency or costs and there is no law saying we need to be here."
"At this time there is no food preference for Pennsylvania pork, genetically or nutritionally, and our hogs are the same as hogs in any other state. As far as consumers are concerned, a hog is a hog."
Bassanini explained that Pennsylvania does not have the cheapest feed, utilities, labor or building costs and has no advantages genetically. "Do we have an advantage with nutrient management requirements? Absolutely not because I know no other state does what we have to do." He explained that Pennsylvania does have an advantage over other states with trucking costs; however, since trucking cost account for only 2 to 3 percent of his company’s expenses, the advantage is small.
"Year in and year out, there are less people in Pennsylvania producing pork. Today there are less than 3,000 farms in Pennsylvania raising hogs. Forty years ago there were over 40,000," said Bassanini. "I attend many meetings and seminars involving lenders who tell me this is the last ’go-around’ for the industry as it is currently structured today. Lenders are very worried."
Bassanini expressed concern about organizations or individuals who thought they had a "new angle" on the industry, saying, "The schemes are over. And if you insist on being completely independent, you will independently exit the business."
Bassanini emphasized cooperation.
"I believe the key is to work together," he said. "Be a part of the coordinated system. Consumers want to know where their food is coming from. The packer or the store is not your customer — the consumer is."
Because Pennsylvania has a big disadvantage in costs, Bassanini told the group they have to take costs out of the production system because the increased costs created by the disadvantages cannot be passed on to the customer.. "Everyone thinks they are the best producer, including Pennsylvania producers, however, you would be shocked at the low costs in some other states. Therefore, we must work together to decrease costs."
"As a packer, do you think we wait until a store calls us and tells us what they want? We don’t wait until they call but instead we go to our stores and ask them what we can do for them. Producers don’t do that, but they should."
He encouraged producers to call and inform him of changes and things they are doing differently on their farms. "Producers need to tell us what they are doing to make their product better."
According to Bassanini, big changes are coming that will affect the future of pork producers and the pork industry in Pennsylvania (and other areas). "We need to promote Pennsylvania pork directly to consumers. I believe this is the key for survival of the pork industry in Pennsylvania."
In closing, Bassanini added, "Pennsylvania is a great place to live and I like it here. I have been around to many other states and areas and Pennsylvania has by far the best stockmen. We need to turn our disadvantages into advantages."
At the close of the Expo’s morning session, Kurtis Good, president of the Pennsylvania Pork Producers Council, presented the organization’s Environmental Stewardship Award to Lowell A. and Janet Sensenig, pork producers from the Adamstown area of Lancaster County. The Sensenigs received a plague and cash award from the National Pork Board, recognizing them for their farm’s outstanding environmental practices.
In addition to a trade show and other industry updates, the expo featured a youth program with a Pork Bowl and skillathon. Youth coverage is planned for an upcoming issue.
