Washington - Citing tremendous price changes which have moved U.S. pork production from profits a year ago to significant losses today, the National Pork Producers Council is asking U.S. Secretary of Agriculture Dan Glickman for help.
In a letter from NPPC President Jerry King, the pork producers asked Glickman to use product purchase and export authorities already available to him to help move U.S. pork into markets in the U.S. and abroad. King, a Victoria, Ill., pork producer said, "Based on market projection for hogs, the National Pork Producers Council (NPPC) is deeply concerned about the financial viability of many of the nation's pork producers in 1998 and beyond. We request that you make additional pork purchases...In doing so, USDA will assist in moderating the negative impact of lower hog prices currently impacting our industry."
Hog prices are about $17.50 per hundredweight below last year's levels, which translates into $42.50 less per hog for farmers.
The letter asks Glickman to implement five programs to help eliminate the downward pressure on hog prices. They are: 1.) initiating additional pork purchases through the use of Section 32 contingency funds for distribution to USDA's domestic feeding programs including the school lunch and breakfast programs; 2.) purchasing pork for The Emergency Food Assistance Program (TEFAP); 3.) purchasing pork for the P.L. 416 (Food for Progress) and P.L. 480 (Food for Peace) Programs; 4.)guarantee of payment for overseas pork sales through the GSM-102/Supplier Cash Programs; and 5.) removing non-tariff barriers to U.S. pork exports in several overseas markets.
King's letter points out the last time USDA made significant supplemental pork purchases was in 1995. He adds, "Global events are impacting hog prices, and the industry is concerned."
Although NPPC has built a successful industry and merchandising program, and aggressively markets its product with domestic and global consumers through such efforts as the successful Pork. The Other White Meat(R) campaign, it is seeking USDA's assistance to reverse the temporary downward price trend, King said.
The National Pork Producers Council is a national association representing pork producers in 44 affiliated states who annually generate approximately $11 billion in farm gate sales, $64 billion in economic activity and employ 600,000 Americans from the farm through processing.
Press for Information on Placing Your Ad Here
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Web Site: http://www.spcnetwork.com/mii