Overview of Integrated Pork Production in North America - Dr. Rebecca Robbins, from the 2018 Allen D. Leman Swine Conference, September 15-18, 2018, St. Paul, Minnesota, USA. More presentations at http://www.swinecast.com/2018-leman-swine-conference-material

1. Overview of Integrated Pork
Production in North America
Rebecca C. Robbins, DVM, PhD
Seaboard Foods

2. The rise of vertically integrated
pork companies
• Started in the 1950s in the poultry industry
• By late 1960s and 1970s chicken found brand recognition
– Now 95% of chicken is marketed under a brand name (1)
• Started appearing in swine industry in the 1980s
– feed mills and pig brokers but totaled a marginal number of producers
• Accelerated in the 1990s with the rise of contract production
– Banks willing to lend money to a farmer to build/modernize hog farms if they
had a long term contract
• leverage of asset for integrator
• diversification for the grower
– Application of model responsible for boom in Southeast region of US
• At this time, not popular in the Midwest

3. The rise of vertically integrated
pork companies
• Pig and pork production now a stand alone business
– Led by Smithfield Foods and Seaboard Foods
• Today, companies apply “systems” approach to production
– Resources, technology and expertise
– Have subject matter experts “on staff”
– Shift in thinking from being pig farmer to pork producer

4. Sustainability of vertically
integrated pork production
• Provide safe, affordable and consistent protein to consumers
worldwide
• Way for pig farmers to stay in business
• Investment in local communities
• Business agreements for pigs not found to negatively affect prices
received on cash market (2)
• The sustainability issues that were predicted in the early years (3)
have not materialized

5. Improving on vertical integration:
Farm to Fork
• Traceability (4)
• Today’s consumer increasingly seeks out how their food is produced
or raised
• Ability to offer choice
– Ractopamine-free, Pen gestated, Antibiotic free
• Integrated pork producers capture the value of the business model in
marketing of their product
– And a brand is born!

6. From integrated producer to
connected food system
• Integrated production describes a specific business structure
– Connects at least 2 aspects of business through ownership
– Often didn’t extend beyond production
• A connected food system can apply to networks of producers +/- their
associated support assets that link to a packer
– Moves beyond a brand label to creation of a food story
– Influenced by social media and an expanding middle class abroad

7. Example of a Connected Food System-
Seaboard Foods
Animal
Production
Plant
Operations
High Plains
Bioenergy
Support
Operations
Customer

8. (4)

9. Expansion of connected pork
systems
PLUS
WholeStone
Farms,
Fremont, NE

10. Canada has made similar moves
• Number of farms reduced
by 80% in 30 years
• Now 75% production in 3
provinces (6)
– Olymel (Quebec),
– Maple Leaf Foods (Ontario)
– F. Ménard (Quebec)
– HyLife (Manitoba)
– Conestoga Meat Packers
(Ontario)

11. Our session speakers
• employed by 1 of the top 20 global mega producers
• employed by a vertically integrated pork company based in the
United States
• under 50 years old

12. Thank you for attending !