A recent ruling by a federal judge would be "disastrous" for small U.S. hog farmers, according to the National Pork Producers Council (NPPC).
Left unchallenged, a recent federal district court ruling will result in a 2.5% loss in pork packing plant capacity nationwide, and more than $80 million in reduced income for small U.S. hog farmers, according to an analysis by Dr. Dermot Hayes, an economist with Iowa State University. NPPC is urging USDA to intervene before the ruling takes effect at the end of next month. The ruling, NPPC said, "will dramatically reduce hog farmer market power--particularly smaller producers located near impacted plants--and undermine pork industry competition."
NPPC said the court's ruling will have the opposite effect sought by those seeking to expand the number of meat packing plant facilities. Lawmakers have recently called for increasing the number of pork processing facilities nationwide by bringing smaller state plants up to federal inspection standards. These facilities represent less than 1% of total harvest capacity.