Abstract

The feeder pig industry is a significant part of the U.S. hog industry. A decade ago, roughly one-fourth of all market hogs slaughtered in the United States were bought as feeder pigs (Van Arsdall and Nelson). More recently, the hog industry has become increasingly industrialized with contract hog production becoming more prevalent, yet the feeder pig industry does not seem to have diminished in importance as specialization in feeder pig production is still common (Rhodes 1990, 1995). The pricing of feeder pigs takes place under a variety of market mechanisms. Roughly one-third are sold in traditional public auctions while another 8 percent are sold in electronic feeder pig auctions (Van Arsdall and Nelson). The remaining sales take place via direct transfer from pig producers to finishers with much of this direct transfer done under contract.

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