News Pigs
Smithfield US closes slaughter location due to corona
The American meat company Smithfield has been forced to close a slaughter location in the Midwest for at least a few days. A loss for pig farmers, given that this is one of the largest slaughter locations in the US.
It concerns a location in Sioux Falls in the state of South Dakota, where a sloppy 20.000 pigs are slaughtered every day. This amounts to approximately 5% of the American slaughtering capacity. The management has decided to keep the doors of the slaughter location closed until at least Tuesday, but this may be longer. Normally, the slaughter process is not interrupted at the weekend.
Many infections
More than 80 of the 3.700 employees at the slaughter location have tested positive for corona. In the cutting plant it is almost impossible for employees to keep their distance, which makes it difficult to apply hygiene regulations. Smithfield is not the only party with many infections. Tyson Foods, Smithfield's 'equal knee', is also struggling with personnel problems.
In addition to slaughterers, dairy producers are also in a bind, which means that the milk has to be sold in some places washed away† This is not so much due to personnel problems, but mainly to a lack of demand.
Pig price down sharply
The US pig price is not benefiting from the capacity problems at the large slaughterhouses in the country and has fallen to $0,88 per kilo this week. At the end of March, the Iowa/Minnesota quote was still at $1,32 per kilo. The pig futures market in Chicago has also plummeted.
Wouter Job
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.