News

Labor at processors could limit hog expansions

Ag economists believe pork production in the U.S. will be limited by available labor at pork processors.

Sterling Marketing President John Nalivka says increasing hog production is not expected to outpace slaughter capacity.  But, he questions if processing plants can keep pace with pork producers.  “The problem is labor on these plants.  It’s already put a squeeze on them and it’s going to continue to do that and that’s across the packing industry—labor has become a real issue.”

Steve Meyer with Kerns & Associates says it’s taken almost a year and a half to fill first shift positions at the two new pork processing facilities in Iowa and Michigan. “The question is how fast can they get the second shift up at Sioux City and I think that’s going to be an important one to watch.”  A second shift is expected to begin by early summer at the Seaboard Triumph Foods pork processing plant in Iowa.

Chairmen of Clemons Food Group Doug Clemens tells Brownfield a second shift is at least three years away in Michigan.  “Right now we’re currently focused on getting this shift up and going. We’ve been at it six months so we’re still in the start up mode, a lot of learning, a lot of training.”

Nalivka is projecting a four percent increase in slaughter numbers and a five percent increase in pork production this year.

AUDIO: National Pork Checkoff press call

AUDIO: Interview with Doug Clemens