Meat Industry INSIGHTS Newsletter

981244 Low Prices Prompt Hog Give-Away

December 11, 1998

Omaha, NE - Pork producers are hardly grateful for this year's depressed market, but for patrons of some state charities, the low prices are translating into a trough of free food.

Area hog farmers, faced with record-low pork prices, are donating some of their animals to charities and food banks for the holidays.

Carolyn Kroeker, donor development manager for the Peoples City Mission of Lincoln, said her organization has been offered 123 hogs from two area producers who wished to remain anonymous.

“We had one farmer who donated 100 hogs, and another one donated several more,” Kroeker said. “I'm sure we'll have lots of ham served between now and March or April. I know we're having ham for lunch today.”

Lack of freezer space forced the charity to accept only seven of the donated hogs this month, but it intends to utilize as much of the remaining meat as possible throughout the coming year, she said.

“We don't get pork donations too often at Christmas,” Kroeker said. “We usually just tend to get turkey, so this is unusual for us.”

It's also been an unusual year for hog farmers, who were hoping the plummeting pork prices of the last few years would rebound this year.

They didn't.

In fact, most producers are making less on hogs this year than it cost them to nurture the animals, processors and traders have noted.

Glenn Buis, owner of Panama Locker in Panama, knew of at least one producer who donated hogs to charity.

“Hogs are cheap; they're not worth anything,” Buis said. “I know of one pretty big producer just southwest of here who's quitting -- just shutting the whole operation down.”

Duane Krause, owner of Tecumseh Locker, said his operation usually receives hogs to donate to charities throughout the year, but this year has seen more donations than usual because of the low prices.

“They dropped to $14 (per 100 pounds) again today,” Krause said. “They need about $40 a hundredweight to make it worthwhile. Producers aren't even getting gas money to haul them now.”

In fact, hog prices have dropped about $4 in the last several days, according to Bill Dostal, a commodity broker with Commodity Traders Inc. of Omaha.

In some rural areas of Indiana and Ohio, hog prices are as low as $10.50, he added.

“They've been under $20 for quite some time now,” Dostal said. “They're practically giving them away. I see no reason why (farmers) wouldn't give them away.”

This Article Compliments of...

Iotron Technology Inc.

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