Meat Industry INSIGHTS Newsletter

981135 Slaughter US Hogs First, Farm Group Asks Packers

November 24, 1998

WASHINGTON - The National Pork Producers Council, in asking U.S. packers for increased capacity, urged them on Monday to purchase and slaughter American hogs “as a priority” until June 1 and let Canadian hogs wait.

In a letter to meatpackers, NPPC said without additional slaughter capacity, a “massive liquidation of pigs and exodus of producers” would occur. Hog prices are the lowest since 1971, it said, but larger slaughter would help farmers.

NPPC said Canadian plants were operating at below-capacity levels while 60,000 head of Canadian hogs were sent to slaughter in the United States each week. Packers should kill U.S. hogs first, it said, until June 1 and until Canada allows freer access to its slaughterhouses.

In addition, NPPC suggested packers should increase their weekend slaughter runs to 375,000 head. It said it would “aggressively communicate” to farmers on the need to deliver hogs for weekend or overtime kills. Packers should consider offering higher bids to bring in hogs for weekend runs, it said.

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