By Blair Koch, Ag Weekly correspondent
The pork budget for 2009 was set with zero expectation for growth, said Independent Meat Company CEO Patrick Florence.
In fact, Florence said the nation, Independent Meat included, will probably process less pork than last year. The move comes as customers bypass pork products for cheaper meat as they cut back spending.
“For 2009, we’re looking forward to lower production. It looks like we are going to see, nationally, processing levels at 96 percent of 2008,” he said.
Like every other sector in the nations economy, the swine industry is holding its breath to see if 2009 will turn around the recession or if things get worse.
While emerging markets are there to capitalize on, from Asia to Mexico, the big question is what will happen over the next three or four quarters.
“Price expectations have altered because we’ve had significant economic changes. For six to eight months out, there is some question on the demand side,” Florence said.
Kuna Hog Farmer Brad Thornton doesn’t expect a turnaround soon and slashed his herd size drastically, taking losses now before they get worse, he said.
“Things are changing, around the world, so rapidly, but I don’t think it’s going to get much better until the end of 2010,” Thornton said.
In the meantime, industry officials are trying to promote pork with the USDA’s Agriculture Marketing Service’s Pork Checkoff Program.
The national pork checkoff, implemented in 1986, was designed to strengthen the position of pork and pork products in the marketplace. It is funded by U.S. pork producers and importers who pay 40 cents per $100 of value when swine are sold and when swine or pork products are brought into the United States. Funds collected are used for promotion, research and consumer information programs.
According to information at the National Pork Board Web site www.pork.org, funded by the checkoff, the program has helped increase domestic demand and has introduced pork abroad.
The USDA AMS recently conducted a request for referendum on the program. USDA Conservation Specialist Glenn Patrick explained the referendum will address whether or not producers and importers want the program to continue.
“The Request for Referendum is to see if producers want to continue with the marketing program,” Florence said.
AMS will conduct a referendum on the order if at least 15 percent of the total number of eligible pork producers and importers request it.
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