Iowa pork producers surveyed in 1995 indicated that while 42% of producers typically receive two or more bids for their hogs, 85% sell to only one packer. Eighty-three percent sold hogs on the spot market only. More than 70% of producers believe that they receive a price higher than reported in the media. Killsheets from approximately onethird of the respondents indicated an average lean premium and sort loss over $1.70 and under $.50 per cwt. carcass weight.
The results imply that Iowa continues to have an active spot market for hogs and that two or more bids are typically available. It also indicated that the net price producers receive is higher than is reported by the USDA in the media. If producers are not receiving prices above the media price, they are selling below the average of their peers.
Iowa State University
Lawrence, John D., "Market Access—Survey Results" (1997). Swine Research Report, 1996. 25.