September 7, 2009

The troubled US pork industry needs more federal assistance than just the US$30 million the Obama administration pledged this week toward government pork purchases, the president of the American Farm Bureau Federation said Friday (Sept 4).

Bob Stallman, who met Friday with US Department of Agriculture Secretary Tom Vilsack, told Dow Jones Newswires that the government needs to buy at least US$100 million more worth of pork and help troubled producers to make loan payments.

That was the message he said he delivered to Vilsack, together with ideas on how to fund the assistance.

Vilsack made no promises about further assistance for pork producers, Stallman said.

There has been an oversupply of pork in the US for the past couple of years while consumer demand has waned, according to the National Pork Producers Council. As a result, producers have racked up US$4.6 billion in losses.

Stallman said he suggested to Vilsack that the administration take US$100 million out of a US$1.85-billion bill passed recently by Congress for dealing with the AH1N1 flu.

The AH1N1 flu, even though it has primarily spread through humans, has hurt pork sales in the US because of unfounded fears that the meat can spread the virus, Stallman said.

USDA officials say they have confirmed that it is impossible to catch the AH1N1 flu from eating pork.