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News Corona crisis

US pig sales provoked by discrimination

25 May 2020 - Jorine Cosse

The American pig sector is under the spell of the corona crisis. The future of smaller pig farms is at stake as the larger companies surreptitiously try to steal sales.

Minnesota Representative Jim Hagedorn, in a letter to Agriculture Minister Sonny Perdue, sounds the alarm because large pig interventions would surreptitiously sideline the sale of smaller family farms.

The corona crisis has hit the American pig sector hard. It is expected that about 10 million pigs will be euthanized as a result. This is a result of the closure of several slaughterhouses in the country. While every pig farm struggles to realize sales of the animals, it is now rumored that large pig integrations are trying to sideline the sales of smaller family businesses.

Integration vs. family business
According to Jim Hagedorn, United States Department of Agriculture (USDA) Price Reporting figures show that integration sales increased 7,4% between January and May. This while the sales figures of family businesses have fallen by no less than 8,8%. Very disturbing, given that the processing of pigs is very difficult. A drop of both would make more sense.

That is why Hagedorn asks the US Secretary of Agriculture Perdue to rectify this situation, if it turns out that this is indeed a case of discriminatory acts. According to Hagedorn, it is important that the sector remains free of unfair practices, so that every pig farmer has a fair chance to survive this crisis.

Chicken and red meat
In addition to the problems that arise in the pig sector, the other meat sectors are also suffering from the corona crisis. The production of red meat fell by 23% in April compared to March. Reportedly, meat processors were only able to run at three quarters of capacity, which has been a huge blow to the meat processing industry and producers.

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Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

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