Meat Industry INSIGHTS Newsletter

981247 NPPC Seeks Canadian Action to Ease US Capacity Crisis

December 11, 1998

Washington - Four million Canadian hogs a year exported for processing in the U.S. is exacerbating the U.S. slaughter capacity crisis, National Pork Producers Council President Donna Reifschneider said in a letter demanding action from Canadian Pork Council President Edouard Asnong of Quebec.

“We believe that the Canadian pork industry can, and must, do more to help ameliorate this problem,” wrote Reifschneider, a producer from Smithton, Ill.

Except for Thanksgiving week, U.S. hog slaughter has exceeded 2 million head per week since the last full week of September. The daily U.S. slaughter capacity is 383,000.

“During this time, hog prices have plummeted to a 43-year low,” Reifschneider wrote. “As you know, many of the hogs being slaughtered in the U.S. are exported from Canada. Based on current data we anticipate that more than 4 million Canadian hogs will be imported into the United States, representing over 20 percent of Canadian hog production.”

A strike this week at Quality Meats in Ontario could send an additional 25,000 hogs per week to the United States. Reifschneider urged the Canadian government to immediately end the Quality Meats strike and ensure that every pork plant in Canada is operating at maximum capacity during this economic crisis.

“Our producers have, and will continue, to use every legal means to increase short-term capacity in U.S. packing plants through measures such as overtime, second shifts, and Saturday and possibly Sunday slaughter,” Reifschneider wrote. She added that NPPC is continuing to urge U.S. packers in the strongest possible terms to slaughter U.S. hogs first.

“This capacity crisis requires immediate action by producers on both sides of the border,” Reifschneider continued. “We are doing our part and we expect the same of our Canadian counterparts. We are under increasing pressure from our members to take extraordinary action. Thus, your prompt attention to this matter is extremely urgent.”

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