Big sky posted a miillion loss how much did agstability pay them?

[grainboy]

@hopperbin, wouldnt you have known when you sold that grain that it was going to the feed mill? I mean your not selling your grain to rayglen they are just a broker they dont pay for that grain. so when you sold it didnt rayglen say it going to the feedmill?

[Hopperbin]

Did not know who bought it actually but now know it was JGL something like that. Then got recontracted something like that from JGL to the local feed mill so were ok just touched basis with them and they could not purchase that far ahead at the time I was wanting to contract and am asking for blending oportunity now if can sell my total production for a price of course. Nice to deal with the locals here actually. Sorry to ruffle some feathers. But when hog barns start to drop like flies gotta get worried.

[Hopperbin]

Not breaking news but,,,,

The Puratone Corp., the third largest hog producer in Manitoba, has filed for bankruptcy protection raising alarm bells about a crisis in the hog producing industry in Manitoba.

The Niverville-based operation has about 40 barns, mostly in eastern Manitoba, producing about 500,000 hogs per year.

The company cited a whole series of challenging market conditions that has forced the company into a situation where it has to be restructured. Those conditions include the recent phenomenon of high feed prices brought on by the drought in the U.S. corn belt.

It owes about $92 million and is in breach of its loan covenants. According to court documents, it has lost about $36 million over the past four years.

Puratone has about 300 employees, but a company release said over the past two years the company has eliminated non-core operations and cut staff.

Barns are remaining open and Puratone’s secured creditors, the Bank of Montreal and the Farm Credit Corp. are supporting the action and will continue to fund operations, but industry sources say it is unclear what will happen going forward.

Puratone is owned by a complex structure including many private shareholders.

Puratone’s filing comes the same week that Big Sky, Saskatchewan’s largest hog producer and the second largest in the country, was placed into receivership after having gone through its own restructuring three years ago. It owes its creditors about $69 million.

Hog producers in Manitoba have been beating the drum about severe losses for some time now.

Spokesmen for Manitoba Pork Council say Manitoba’s producers are in line to lose as much as $150 million this winter.

They say hog producers are losing at least $20 per head with no relief in sight at least until next summer when futures prices are already being pegged at about $20 per head higher than they are today.

[Hopperbin]

I always like to see what is the corps capital per employee for some reason.
Puritan's debt to banks not counting assets is 306,666 per employee.

[Hopperbin]

So interest on that debt to the banks is if at 4 percent per annum is 12,266 per employee.

[TOM4CWB]

"No question there will be pain for those who thought the CWB single desk monopoly (LIVESToCK SUBSIDY) wouldn't end! Risk Management now is required to turn a profit for livestock production INSTEAD of GRAIN FARMERS supplying it gratus)."

"HA HA" at me all you like... THIS is the new reality. We were on the topic about why Big Sky et. el; are broke.

PLEASE note... I see NO CWB offer for marketing FEED Barley. WHY?

CWB Feed Wheat initial at the local elevator... $3.90/bu initial... while we just sold a big lot of NonBoard at $7.50/bu?

And this would be happening IF the Single Desk was still in place?

I call your bluff... NO WAY.

Take what I said at face value.

In no way was this ANYTHING but a reality check.

Cheers!

[Hopperbin]

And at producing 500 thousand hogs per year the cost is 7 dollars 36 cents per hog. Now if they produce less hogs the cost of the debt rockets up. What to do? I do not think I would want to run a hog barn now.

[Hopperbin]

Tom at these current prices I am wanting to make a 100 thousand bushel sale. But I want to put an ad in or a demand after sale that I get paid every 3 loads. Then I will continue hauling I do not think this is out of line.

[wmoebis]

Is the price of feed too high or is it that they spend too much on medication, feed additives, growth hormones, sewer treatment/removal, trucking? How can they say all thier losses is from the price of feed? What about accountants and lawyers?

I think they should be compaining about other costs first. Feed is pretty important for fattening livestock.

[Hopperbin]

Thinkin they need higher pork prices

[grassfarmer]

HaHa indeed Tom - you think livestock producers
haven't needed risk management in the past? Saved I
guess by you giving away your grain for free.
Complete tosh - maybe you should speak to some of
the feedlot operators since BSE - they could tell you a
bit about risk management.

As for the hog situation high feed prices are maybe
the straw that broke the camels back but the
problems run deeper. Try looking further up the chain
and see what the processors are paying, what the
retailers are paying, what the consumer is paying and
what they think of the "hog barn" flavoured pork they
are buying. We retailed some recently that grossed
over $700 a hog with all the processing done and we
have a waiting list of consumers wanting to buy this
clean, outside reared quality pork.

[TOM4CWB]

Grassy,

UNtill the end of the CWB single desk, basically the cash market with prebuying options best served the livestock feeder.

Now the CWB does not distort the local market DOWN and prevent the arbitage of feed up to world values... prices are HIGHER.

So why not comb the earth... to find the highest feed grain prices/markets on the planet... and arbitage the feed market even higher in western Canada(NO Profit needed; better prices at the farm gate)?

Looks to me that the CWB is STILL not working for grain farmers in western Canada!

Still providing cheaper feed for you Grassy!