Monday, May 25, 2015

Hog slaughter capacity crunch looms

North America is going to run short of hog-slaughter capacity sometime next year, according to Steve Meyer and Len Steiner who write a Daily Livestock Report.

They predict the industry will squeak by with just enough capacity this fall, but at the current pace of increasing herds and productivity gains, next year there won’t be enough packers to slaughter all the hogs farmers will have for sale.

The following year, 2017, two new large plants will come on stream and then the capacity crunch will be over.

Seaboard Foods and the Clemens Food Group are building the new plants.

Clemens, which owns Hatfield in Pennsylvania where many Ontario hogs have been sent over the last few decades, is building at Coldwater, Michigan. It has several large hog farmers as partners.

Seaboard is working with Triumph Foods to build in Sioux City, Iowa.