Swine industry weathers COVID storm, future looks optimistic

The outlook on the pork industry is optimistic as it settles back into a more normal routine after the pandemic caused bottlenecks in meat processing.

Iowa State University Extension’s Southeast Iowa Swine Specialist Matthew Romoser said the industry is quite profitable, though pork producers were hoping for an even better year when it began. Certain events out of their control, such as bad drought in Iowa and Russia’s invasion of Ukraine, have created ripple effects that have affected the price of corn and soybeans, and thus the expense of raising hogs.

Romoser said one of the issues that has been nagging at the industry of late is a shortage of labor. He said it’s affecting all producers, big and small, who are struggling to hire enough workers. The Union asked Romoser if the labor shortage is from a lack of immigrants. He said that might be a contributing factor. He added that, as fewer people grow up on farms, it’s getting hard to recruit them to work on one.

“Fewer people today have an ag background, so it’s hard to get them to raise livestock,” he said. “We’re not replenishing the workforce as quickly as we should be. There’s nothing trendy about hard work, so if people can find another job with a known schedule working 8-5, they’ll take it. Our livestock depend on us every day. We have to be available 24/7. We have to show up in the middle of a snowstorm.”

The swine industry is coming out of the COVID pandemic, which afflicted the workforce inside several meat packing plants. In response to these COVID outbreaks, the federal government stepped in with regulations that slowed down the production line, so that workers could maintain safe social distancing from one another. Romoser said this regulation reduced the amount of pork that could be processed, but he said that’s changing now.

“The USDA is allowing some plants to go at faster speeds, so they’re getting back to normal slaughter capacity,” he said.

Romoser said the pork industry in the U.S. has not been affected by serious diseases the way some countries have. He mentioned that African Swine Fever is one of the major diseases that pork producers are keeping their eye on.

“If we tested positive for African Swine Fever, overnight we would lose 25 percent of pork production to foreign markets,” he said.

The closest countries to the U.S. that have contracted cases of ASF are the Dominican Republic and Haiti. According to the USDA, African Swine Fever has never been found in the United States.

Romoser said the swine industry is rolling out a program called the U.S. Swine Health Improvement Plan that would keep records on the movement of hogs to confirm they are ASF-free. At this point, the program is voluntary, and it’s designed to get pork producers back on their feet if ASF ever does reach America’s shores.

“It’s valuable because if we had a bulk of farms that were all certified under the Swine Health Improvement Plan, the USDA can take that to our trading partners as proof that those herds tested negative,” he said. “It’s part of a strategic plan to keep our industry competitive worldwide.”

One-quarter of America’s pork is exported, and Romoser said the biggest buyers of pork include the candidates you’d expect, such as neighboring Mexico and Canada, and maybe one you didn’t: Japan. Romoser said Japan is not conducive to raising hogs, but Japanese like eating pork, so they have to import the meat. In fact, Japanese are especially fond of high-quality loins, and are willing to pay top dollar for them.

“That works well for our farmers, because we can provide it for them,” he said.

Trade is great for Iowa farmers and livestock producers, and this year saw a major disruption to the flow of goods around the world. Russia’s invasion of Ukraine, which began in February with hostilities continuing to this day, dramatically reduced Ukraine’s ability to export food. This caused an increase in the demand for foodstuffs such as corn from other countries, and raised its price.

“Now pork producers are having to pay more for grain,” Romoser said. “Between 70-75 percent of a hog’s diet is corn, with soybeans making up a good percentage of the rest.”

Romoser said that, within Iowa, about 22 percent of the corn crop and 23 percent of the soybean crop goes to feed pigs, so it’s no wonder that Iowa is the top pork-producing state since a hog’s meal is grown right here. Romoser said he hopes Iowans will take advantage of these great products the state’s farmers are putting on the shelves.

“I encourage people to buy pork at their local grocery store,” he said. “Get a pork chop, cook it to 145 degrees, and you’ll be happy with the end product.”

Call Andy Hallman at 641-575-0135 or email him at andy.hallman@southeastiowaunion.com