I am producing of pigs in Cundinamarca. I possess a small nucleus of breeding and another of it feeds located one of the other one to about 40 distance kg, and under very different climatic conditions. Based on studies of CEGA, I have evidenced that the market of the pigs in Colombia is guided by cycles bianuales, and inside these cycles bianuales, there is a variation that depends on the relationships offer-demand, of the time of the year, of the price of the dollar, etc. This means that there are two years of a peacefulness among quotation marks, and two years of thin cows. In the years of cows thin, many agents of the market they retire (breeders, primers, etc that cannot support the situation for lack of competitiveness), what rebounds in a moment of general crisis, since these people distort the market selling to any price with such of recovering some part of their investment. However, this, the offer happens immediately it diminishes gradually until the market is balanced, even being able to arrive to an insufficient offer that impacts very positively on the price of the pig (it is more marked the effect in fat pig that in pigs). It is so here the price of the Kg in foot in refrigerator of Guadalupe, $1000 and $1500 can be for above, that represents about $150.000 pesos of more for head.
Because the agents of the market are not controlled here in Colombia, as yes it happens in the other countries, when seeing the profitability of the business in this precise moment, a movement of occasional primers begins in search of pigs to put on weight. When they evidence the pig lack in the market, themselves impacts on the demand of stomaches, which will have the market full with pig again in the term of one year. That directly the offer of fat pig increases, and at this time, before a demand that doesn't increase considerably, it causes the following cycle of thin cows. To this he/she is added the speculation of the big acopiadores of the pig that you/they are shielded after the oversupply to pay to the producer the price that they want, and when as simple buyers we want to go to a store to buy pig, we see of what he/she is formed it distributes the cake of the chain of production of the pig, because the prices don't change, while the producer is the one affected, we continue buying pig meat at 4500 the pound, when the sale price can end up being located for under or at the same level of the head meat.
This is a very shallow idea of the behavior of the market.
The breeding leaves a profitability a little more constant, but you/he/she is less flexible than you/he/she feeds it, that is to say that the investment is safer. However, to reduce costs is a more difficult point that in it feeds, for example, because near the 60 of costs for it feeds it they relapse on the feeding régime. If we are able to locate matters cousins to under price, we will still have very competitive production costs in crisis time. It is the case of those who pig Kg can take place with the 40 less than investment in feeding, using as resource the yucca starch. |
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