News
Grimes looks back at career and forward at future of industry
By any measure, University of Missouri Professor Glenn Grimes has been one of the giants of agricultural economics. Grimes recently retired for a second time but managed to take some time to talk to Brownfield about the changes he’s seen in the industry over the last several decades and what may be coming in the future.
When asked what the biggest change he’d seen was, Grimes answered: “Technology…you know, at my stage in life, it seems like we’ve probably tapped most of the technologies, but we probably haven’t.”
For livestock, specifically hogs, Grimes points to better disease control leading to an increase in concentrated animal feeding adding “We’ve seen quite a change as far as the structure of the industry is concerned. The packing industry has changed drastically – we really have none of the firms of 50 years ago still killing and processing hogs. Well, I guess I should say we have one left, Hormel.”
Grimes added that relocation of the hog industry has been a large change, citing North Carolina rising to the second largest U.S. hog producing state.
For beef, Grimes states that changes to feeding practices have been most noticeable “When I started work, our cattle were mostly fed in the Corn Belt on farm feedlots in relatively small numbers. Now, the beef cow herd has not changed materially because it is tied to acres of land and it’s still a industry of small producers but the feeding industry has relocated into large lots where there are economies of scale as far as the finishing of cattle are concerned.”
Looking ahead, Grime expects continued change including further concentration in the hog industry, but believes that unlike poultry, hogs won’t turn to a vertically integrated system. Additionally, Grimes states corn and hog production fit together “extremely well…We see the Corn Belt producer that also produces hogs as being very competitive. He has the advantage of evening out his income by having corn and hogs. Manure has become very valuable and he can best use it without some of the environmental concerns that we have in some other places.”
Grimes adds that one of the biggest challenges facing producers is increased environmental regulations: “That’s one of the concerns that hog producers if they don’t have, they should have as they look at the future – it’s going to make it a lot more difficult but is probably necessary.”
Grimes also says there is “no question” the animal welfare movement will increase involvement in production agriculture, “We have quite a number of people that have more money than they have brains and they do not understand what they’re doing in our opinion. The hogs and cattle are treated humanely as far as producers are concerned. Certainly there are a few that do things that they probably shouldn’t do, but as long as we have people, we will do that.”
Add Comment