January 22, 2009
US hog slaughter trimmed by eastern snowstorm
Heavy snowfall across the southeast US overnight Monday (January 19) into Tuesday slowed transportation of plant workers and livestock, which led to a sizable downward revision in Tuesday's hog slaughter estimate.
The US Department of Agriculture adjusted its slaughter estimate for Tuesday to 407,000 head, down from the original figure of 430,000.
Industry participants and analysts said Smithfield Foods three pork plants in North Carolina and Virginia were affected by the snow and slick roads.
The region isn't used to that kind of weather, and neither the state nor cities there have enough snow-removal equipment to keep up when a heavy snow occurs, they said.
"Smithfield Foods has a policy of not commenting on daily operations, minor disruptions, and openings and/or closings of processing plants," said Keira Ullrich, investor relations manager with the company, in an email reply. "If developments occur that materially affect operations, the company will issue a press release."
While road conditions in the region were much improved Wednesday, there may be some areas where transportation could still be slow and may affect the movement of livestock to the processing plants. Livestock dealers and analysts said if there is a downward revision to Wednesday's slaughter, it should be a small one.
