October 23, 2009

It will take a month or two for the US Agriculture Department (USDA) to decide whether to buy more pork to prop up the money-losing hog industry, Deputy Agriculture Undersecretary Michael Scuse said on Thursday (Oct 22).

 

The National Pork Producers Council (NPPC) wants the government to buy at least US$50 million of pork products to use for government food assistance programmes.

 

Hog producers have lost, on average, nearly US$23 for each hog marketed since September 2009, said NPPC president Don Butler at House Agriculture subcommittee hearing.

 

Scuse told the subcommittee losses are expected to moderate from now through 2010 as demand increases and hog supplies decline.

 

He said that the department continues to evaluate pork market conditions and, if justified, USDA will initiate additional surplus removal purchases this fiscal year.

 

USDA spent US$164.6 million to buy 100 million pounds of pork during fiscal 2009, ending on September 30, mostly for donation to food banks. It was double the total for fiscal 2008 and included a US$30-million purchase announced on September 3 to bolster hog prices.

 

Up to US$250 million is available in so-called Section 32 funds, raised by customs receipts, to assist unsubsidised US farm products, such as pork.