Meat Inventories Down
Friday’s Cold Storage report was not wildly bullish, but
was certainly good news regarding the status of frozen meat and poultry
inventories. Stocks for every species were well below year-ago levels
and lower than the already-low levels reported in the December report.
Data for all meat and poultry species appears in Table 1 and the monthly
species totals are shown in Figure 1 to provide a historical
Total meat and poultry in freezers on Dec. 31 amounted to 1.813 billion
pounds, 19.1% lower than one year ago and 1.2% lower than last month.
That remains the lowest monthly inventory since November 2003. Stocks
of pork and beef are about the same as at that time, but chicken
inventories are 100 million pounds lower and turkey inventories are
almost exactly 100 million pounds higher now than in November
Start to a New Year
We have had an amazing run in swine prices in December and
January. Cash prices are running close to $70/cwt. carcass, an unusual
occurrence for this time of year. While attending the Minnesota Pork
Congress this past week, I noticed many producers had smiles on their
faces for the first time in almost two years. In talking with many
producers, I found mixed emotions. Some feel that they might actually
have a month where they have a chance at being profitable. The other
thought is a concern about what could cause the market to turn down. The
consensus that I heard was that they still have not gone a month in
almost two years where they actually made money, “so let’s not get
too excited. We have a long ways to go to get back to where we were in
2007." This is a nice start and a welcome change.
Cut out – Attached you will find a historical chart on pork
carcass cutout. Notice that as of Jan. 21, we are at the highest value
that we have been in the last nine years for this time period. The last
time we had this kind of run was in 2005. There are two drivers here –
demand has been very good across the board for all cuts of pork and hog
supply numbers are running below a year ago. Higher demand coupled with
reduced supply generally results in higher prices.
Safety Review Sought
Congresswoman Rosa DeLauro (D-CT), chairwoman of the House
Agriculture Appropriations subcommittee, has called for an independent
science board to review USDA’s meat and poultry inspection system in
reaction to the recent recall of approximately 864,000 lb. of beef
contaminated with E. coli. DeLauro said, “Contaminated meat products
continue to enter our food supply at a disturbing rate. And, as recalls
like this attest, it is time for the meat and poultry inspection system
at USDA to be subject to a comprehensive review by an external,
independent science board to ensure that the current system is
adequately protecting the public health. Such a board would support and
advise USDA, ensure that the inspection process is rigorous and
scientifically robust, and recommend changes to any practices that are
insufficiently protecting our food supply.”
Smithfield Plans Closure of Sioux City Packing Plant
In a surprise move to the citizens of Sioux City, IA, and
pork industry analysts, Smithfield Foods has announced that it will
permanently shutter the John Morrell & Co. hog processing and fresh meat
fabrication plant effective April 20, 2010.
“We deeply regret having to close this facility,” says Joseph B.
Sebring, president of John Morrell. “We recognize that layoffs and
plant closings are difficult for everyone concerned. But at the same
time, we believe this is a necessary business decision. The Sioux City
plant is one of the oldest, most outdated and least efficient plants in
the Smithfield system,” he continues.
There are approximately 1,450 hourly and salaried employees at the Sioux
City plant that will be affected by the closure.
Jan. 27-28, 2010: Iowa Pork Congress,
Iowa Events Center, Des Moines, IA; contact: Iowa Pork Producers
Association at (515) 225-7675 or go to www.iowapork.org
Jan. 28-29, 2010: Wisconsin Pork Association (WPA)
Business Expo, Kalahari Resort, Wisconsin Dells, WI; contact: the WPA
office at (800) 822-7675 (in state), (608) 723-7551 or go to www.wpa.org.
Jan. 29, 2010: Oklahoma Pork Congress, Express
Event Center, Oklahoma City, OK; contact: (405) 232-3782 or www.okpork.org.
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position will have complete accountability for all swine production
related activities in our North Carolina – (10,000 Sows in Production,
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Ideal candidates must have the following qualifications:
M2P2 offers a competitive wage and benefit package which includes
medical, disability, life insurance, 401K, vacation and paid holidays.
Please send resume to be considered for this postion to
- Three to five years of swine management experience preferred.
- A minimum of a High School Diploma or GED.
- Proven conflict resolution skills.
- Strong written and verbal communication skills.
- Expected to take an active role in companies all ready established
bio-security and safety programs.
- Prior supervisory experience preferred.
- This individual will be responsible for focusing efforts on the
reduction of costs and increasing throughput.
- Responsible for developing yearly production output budgets,
expenses budget and necessary capital spending budget.
- Be able to influence change through educating and training at all
levels in addition to frequent farm inspections.
M2P2 is an Equal Opportunity Employer.
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