June 16, 2008

 

US pork packers expected to make up for time lost during floods

 

 

US pork packers forced to curtail production at Midwest slaughter and fabrication facilities are expected to make up for it over this week.

 

Tyson Meats last week temporarily suspended operations at its pork plant in Iowa last week due to flooding concerns. The plant is located near both the Iowa and Cedar Rivers in southeast Iowa.

 

Libby Lawson, spokeswoman for Tyson Fresh Meats, in an e-mailed response to questions, said water levels are expected to rise over the next several days.

 

As such, there will be no operations on the Friday, Saturday or Monday, Tuesday and Wednesday of this week (beginning June 16th), Lawson said.

 

Rising waters are expected to limit access to the plant.

 

Tyson's Perry, Iowa, pork plant did not have slaughter operations Friday but did process pork, Lawson said.

 

"We expect to run normally in Perry on Monday and next week as flooding did not occur in and around the plant," she said.

 

An unnamed Tyson plant also may work Saturday to make up for Columbus Junction and/or Perry's lost production, said analysts and livestock dealers.

 

In addition, the Cargill Meat Solutions plant in Ottumwa, Iowa, did not operate Friday, said Mark Klein, company spokesman. Cargill's Beardstown, Ill., plant is to operate Saturday to make up for the Ottumwa plant's closure.

 

Other plants around the Midwest may be affected by delayed deliveries or difficulties with employees being able to get to work, market analysts and brokers said. The plants themselves are located on high enough ground to avoid flooding so plant operations were expected to continue, and slaughter and processing numbers at these plants were expected to suffer only marginally if at all.

 

Market analysts and brokers said the combination of extra Saturday kill schedules and added hours next week at the affected plants and additional hours at other company facilities should make up the lost slaughter within a week.

 

Cattle markets in the Midwest were not affected since slaughter operations are outside of the worst-hit areas, market analysts said.

 

CATTLE/HOG SLAUGHTERS

 

This week's cattle slaughter was estimated at 686,000 head, compared with 695,000 a week ago and 713,000 a year ago. Year-to-date cattle slaughter is up 1.1 percent from a year ago.

 

The week's hog slaughter was estimated at 2.048 million head, down from 2.117 million last week and 1.928 million a year ago. Year-to-date hog slaughter is up 9.7 percent.

 

TOTAL MEAT PRODUCTION

 

The USDA estimated total beef, pork and lamb production for the week at 937.8 million pounds. Last week's output was 957.4 million pounds, and the year-ago figure was 935.2 million pounds. Year-to-date combined meat output is up 5.5 percent.

 

Broiler/fryer slaughter this week was estimated at 167.741 million head, compared with 152.590 million a week ago and 164.047 million a year ago.