Jim McPeak - Profile and Vision

Healthy Hogs = Bigger Profits

A GRADUATE of the University of Saskatchewan College of Agriculture, where he majored in nutrition and genetics, Jim McPeak joined Babcock in 1972 as vice president. He became president in 1980. Under his leadership, Babcock has become a major international supplier of quality swine genetics. In 1992, McPeak was named Minnesota's World Trader of the Year for his service to Minnesota's global trading community.

SHAPED by decades of experience in the worldwide swine genetics business, McPeak's vision of Babcock's future has been distilled in recent years by the dramatic shift of the U.S. industry from one dominated by independent farmers to an integrated food sector. More than ever, he understands the need for genetic suppliers, producers, and packers to satisfy diversified consumer demand. Today, packer procurement and payment strategies focus on specific markets. That's a major shift in a few years. Tight margins and a competitive retail sector have spawned this change. As they strive to satisfy retailers, packers are adopting contracting programs that tie specific breeding stock supplies to a variety of consumer demands.

THE MARKET is moving in two broad directions. The commodity market increasingly relies on lean pork, which is processed to improve palatability. Another emerging market demands fresh pork with superior marbling (intramuscular fat) and juiciness. Pork requires a certain amount of marbling to remain tender after cooking. Babcock is positioned to satisfy these two broad markets and others. For instance, we supply genetics to Japanese customers that produce pork with five percent intramuscular fat. Upscale U.S. markets are demanding a similar product. Such marbling levels would prompt hefty penalties at most U.S. packing plants. Currently, processors sort extensively to satisfy customers. Most packers pay producers for lean. However, as markets mature, some packers may begin rewarding producers for quality traits such as marbling, color, and water-holding capacity.

BABCOCK’S ROLE is twofold. Our first priority is selecting genetic lines that meet today's diverse pork markets. Secondly, we must maintain genetic improvement programs that provide top production efficiency at the least cost. The best way for producers to boost profit is by cutting expenses through better performance and reduced herd health costs. PERFORMANCE of Babcock breeding stock has improved steadily through the use of genetic tools such as gene markers, which make selection more predictable by removing undesirable genes and increasing the frequency of beneficial genes. Gene markers are used mainly to impact feed efficiency, pounds of pork sold and meat quality.

HERD HEALTH costs can significantly impact profits. Our closed herd breeding systems are vital for maintaining health and reducing costs. It is widely recognized that live animal introductions cause at least ninety percent of today’s swine disease problems. Babcock has advocated internal multiplication and closed herd breeding systems for years, starting with a grandparent program in 1977. Commercial herds using Babcock's Closed Herd™ System, backed by sound biosecurity, are maintaining efficiencies without the high cost of repopulation. To date, not one Babcock customer using the on-site closed herd system has depopulated due to disease or poor performance. THE KEY to Babcock's future is continued customer satisfaction. Supported by genetic diversity and decades of selection at the nucleus level, we are well-positioned to satisfy a variety of packer and consumer markets. Our track record speaks for itself.