The discussion of late has been focused around risk, grain prices, export demand, rising input costs, GIPSA, etc. All of this, coupled with historically high prices, has taken some of the focus off quality and genetic improvement. Yet, all these changes actually make genetics more important. After all, feed efficiency is a whole lot more important when corn is $6/bu.
The reality is that in today’s environment of both rising prices and rising costs, the traits of efficiency and quality will ultimately be bigger drivers of profitability than ever before. Even more important is that the commodity model that the large feeding complexes were so good at employing in the past is no longer viable.
Buying and selling based on averages makes sense; that is, until someone discovers how to buy above-average genetics for slightly above-average prices.