Pig Farmers: Are We Going to Produce Food in the U.S. or Not?
With four loads scheduled to head to Smithfield’s pork processing plant in Sioux Falls this week, South Dakota pork producer Steve Rommereim says he’s facing a barn full of pigs with nowhere to go.
Quite simply, the whole situation is heartbreaking, he says.
With the Sioux Falls plant closed indefinitely, 20,000 pigs a day that were scheduled for harvest at the plant now have nowhere to go. Within two weeks, that’s almost a quarter of a million pigs, Rommereim says.
“The hog industry is a pipeline just like all of our food is,” he says. “You start production at the birth of babies, you end it with a full-grown animal. And when one piece of that chain gets broken, we have a major issue.”
Unintended consequences
Rommereim says there are many unintended consequences because of the decision to close the Sioux Falls plant.
“In my opinion, the potential shortage in the food supply is going to be a concern,” he says. “We all have to eat. When you consider what’s going on in agriculture between people going out of business, increased bankruptcies and eggs and milk being dumped, you just can’t immediately replace all those things. A quarter of the world's hogs are gone because of the African swine fever and now the pork industry is facing this disruption with our own food chain in America.”
He says the question Smithfield Foods CEO Kenneth Sullivan raised is crucial now. Are we going to produce food in this country or not?
“We're facing a lack of protein all over the world,” Rommereim says. “If more plants have to close down temporarily, we may not be able to process enough protein for our country, much less fill in the holes in China and Southeast Asia.”
Where will the pigs go?
Mike Ver Steeg, owner of Prestige Pork in Inwood, Iowa, says he’s been able to get all his loads of market-ready pigs in up until this week. Depending on the length of Smithfield’s closure, he has contingency plans to help the farm in the next month or two. But if it gets drawn out longer, he says it won’t be good.
“We sell pigs to another plant, but most of ours go to Smithfield,” he says. “There are a lot of pigs in the U.S. right now. All of the other pork processing facilities are full so you just can’t call up another one and get your pigs in right now. I am still looking for a place to sell. Right now, I’m hopeful Smithfield is back and running in two weeks.”
Pig farmers are looking at ways to feed pigs maintenance diets to slow growth, but at the end of the day, space is limited.
“We've never had a lot of reasons to try to slow growth down but with lessened harvest capabilities, it’s something to consider,” Rommereim says. “We need some good science around what to do here. It doesn't help the first part of the chain, but it certainly helps the pipeline, and would at least help those waiting for a time they can harvest their pigs.”
Producers have some hard choices ahead as barns fill up and space runs out. Ver Steeg says he has not thought about euthanizing pigs, yet.
“As farmers we care for our livestock and we don’t want to take any drastic measures,” Ver Steeg says. “Euthanizing pigs is the last thing we want to do.”
More guidance needed
Rommereim is hoping for guidance from federal regulatory agencies about essential industries and public health.
“Strict rules for essential businesses about when they are closed are needed and should be highly regulated,” Rommereim says. “Keeping empty grocery stores open is not a solution.”
Ver Steeg says he’s not interested in government telling businesses what to do. But in light of this current situation regarding packing plant closures, he believes harvest facilities need to be running every Saturday and harvesting every pig they can in order to help the rest of the industry.
“I know market conditions are telling some of these facilities to slow down, but it’s a lot easier to store meat than pigs,” Ver Steeg adds.
Who will survive?
To get through this, Rommereim says it will require making very wise decisions moving forward.
“Bankruptcies have gone up. These are real people with real farms and real dreams and hopes for that life,” Rommereim says. “We have to try to figure out how can we save some of these dreams.”
Undoubtedly the pork industry is dealing with a major oversupply of pigs. But Ver Steeg says with all the trade agreements being promised, the industry should have been able to muscle through that.
“But when you have black swan events like this, it just complicates things, or maybe it speeds things up,” Ver Steeg says. “There’s always going to be highs and lows of markets and less efficient producers that need to get out of the business, like it or not, but it’s just part of business.”
He believes without COVID-19, producers on the edge could have hung on for a longer period of time. The reality is that many producers are going to go out of business.
“It breaks my heart that there are some that will not come out on the other end of this,” Rommereim adds. “It feels like you just can't get on top of anything. It starts to really wear on a guy. I worry about the mental health of our farmers.”
That’s one reason why he’s been on the phone tirelessly advocating for producers, helping round up resources and finding ways to help others make it through this incredibly challenging time.
“We are trying to provide help for pork producers during this very challenging and very serious time,” Rommereim says. “In South Dakota, we’re gathering as many resources as we can find for our producers, whether that be loans, banking seminars, mental health resources. We're going to have to get the standards around euthanasia and proper disposal and make sure everybody's following those standards and guidelines. We're going to try to put together other harvest options to see if other plants are able and willing to take a few thousand head here and there to help us get through the surplus.”
But when the phone calls cease for the day and he’s left alone with his thoughts, Rommereim admits he feels helpless that he can’t do more for the industry he loves.
“I really have a lot of empathy for producers that are struggling because the struggle won’t get any better for a while,” he says.
More from Farm Journal's PORK:
Pork Industry Faces $5 Billion Loss Due to COVID-19
Pork Industry Prepares for Ripple Effects of Smithfield Plant Closing
Tyson Foods to Keep Columbus Junction Plant Closed Another Week
VIDEO: SD Smithfield Plant Temporarily Closes as State Stays Open
Pork and Beef Plant Closures: Dynamic Disruptions Continue
Longer Processing Plant Closures Creating Dire Situation for Pork
Smithfield Foods To Close Sioux Falls Plant Indefinitely Amid COVID-19
