Vilsack Says Reducing Line Speeds at Pork Plants Isn't a Done Deal as July 1 Deadline Looms

As World Pork Expo enters its second day in Des Moines, Iowa, a policy priority for the pork industry continues to be the issue of line speeds at pork plants. And just this week, Agriculture Secretary Tom Vilsack made comments that contradicting an earlier statement from USDA, with Secretary saying no final decision has been made on the issue. 

The USDA recently announced it would not appeal a Federal Court’s ruling ordering packing plants to operate at slower line speeds, and many in the industry feel this will do more harm than good. The Federal Court judge said line speeds needed to be slowed at six plants operating under the New Swine Inspection System. The decision is set to take effect July 1, 2021.

During a press conference with reporters this week, Vilsack said no decision has been made yet on appealing a ruling in March. This goes against a notice from USDA's Food Safety and Inspection Service last month that said the six facilities should prepare to revert to their old speeds of 1,106 animals per hour at the end of this month.
Vilsack says in any case, the decision is up to the Solicitor General.
 

The National Pork Producers Council says this is the most pressing issue for the pork industry right now. 

"We've been encouraging the government and our administration to appeal this decision. NPPC still believes the administration should appeal this rule," says Neil Dierks, CEO of National Pork Producers Council (NPPC). "There are other possibilities as we go forward, but our hope is that there could be some resolution to this."

Dierks says recent studies have shown the reduction of line speeds won't improve worker safety like proponents of the line speed change claim. He says ultimatley, it will be smaller producers impacted most if the reduction in line speeds stand. 

"Reducing line speeds at plants won't benefit and could have a negative impact on our producers," says Dierks.  "Dr. Hayes' study shows the impact on this kind of thing will disproportionately impact smaller producers because you have a situation where suddenly the plant can't operate at certain levels, that means producers have to do something else as far as a market that they maybe had been committed to, and could create all sorts of angst through the industry."

Dr. Dermot Hayes, an economist with Iowa State University, released a report in May that showed even with possible mandatory overtime to compensate for lost capacity, the industry will lose 2.5% of overall harvest capacity if the ruling stands. 

“Six pork processing plants are currently operating at higher line speeds allowed under the new USDA inspection system," says Hayes. "Five of these plants have been operating at these speeds for more than 20 years under the pilot program introduced during the Clinton administration.” Three of the impacted plants are located near top-producing Iowa."

He says this will cost producers $83.2 million via lower spot market prices, with small hog farmers likely to bear the brunt of the decision.

“Packers will likely use Force Majeure provisions to declare their pricing contracts with hog farmers null and void, forcing these farmers to sell their hogs on the spot market,” Hayes says.

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