Several slaughterhouses in America are under construction to process additional pigs. With the extra slaughter capacity, it is expected that sufficient hooks will become available to accommodate the record number of pigs this year.
Extra slaughter capacity is generally not unfavorable for the price setting on the pig market from a producer's point of view, although it can have a disruptive effect in the short term. A
In the state of Iowa - the epic center of the US swine industry - Seaboard Triumph Foods has a new slaughter site under construction with a capacity of approximately 10.000 to 12.000 pigs per day. With these extra slaughter hooks, the slaughter capacity in America will probably be expanded by about 2 to 3 percent. On a typical working day, the slaughter figure in America usually ranges between 390.000 and 450.000 pigs. The new slaughterhouse is scheduled to become operational sometime in July.
Analysts in America say that the extra slaughter capacity is not an unnecessary luxury. ‘The planned expansion is a significant increase in slaughter capacity, but it is also badly needed for the resilience of the American pig sector,’ said agricultural economist Steve Meyer, referring to the number of pigs still in the pipeline. The US Department of Agriculture expects a 2026 percent growth in the pig population until 3,9
Slaughterhouses are also under construction in other states and will become operational this year. For example, Clemens Food Group in the state of Michican will expand its capacity by about 10.000 slaughters per day. Also in Minnesota and Missouri there will be extra room for approximately 6.500 slaughters per day. In addition to the extra slaughter hooks, the processing and packaging capacity is also being expanded, although the completion of these factories is only planned in 2018 and -19. In the meantime, there is a fear that cold stores will become overcrowded, because the processing capacity lags behind the slaughter capacity. Meyer therefore expects that the processing industry will be forced to work overtime next autumn.
Incidentally, the pig market in America has, contrary to expectations, left the deep price trough, in which prices were still dangling in mid-November. Since November, the American pig price has increased by about 60 cents to 1,44 euros per kilo at the beginning of March. The price recovery is a result of the falling price of pork in supermarkets, which has led to a pick-up in consumption. In addition, pricing is supported by good export figures.Â
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