Pork industry hails USDA's move to extend inspection line speeds

Feb 29, 2024

By Farms.com

The USDA's Food Safety and Inspection Service (FSIS) has extended the New Swine Inspection System line speed trials to January 15, 2025. This decision reflects ongoing efforts to enhance processing efficiency while addressing concerns about worker safety.

The National Pork Producers Council (NPPC) has been a vocal supporter of increased line speeds since 2019, advocating for changes that would significantly raise national harvest capacity. The FSIS's decision to continue these trials, including a focused study on the impacts on worker safety, has been met with approval from industry leaders.

Increased line speeds were initially tested in six pork packing plants in 2021, with the dual aim of assessing productivity gains and understanding potential safety implications for workers. The positive feedback from these initial trials led to the recent extension and the inclusion of a comprehensive worker safety study.

Economic analyses highlight the critical nature of these trials, suggesting that without the ability to process pork more rapidly, producers faced the risk of considerable financial losses. The extension of the trials is seen as a vital measure to prevent these losses, which could have reached nearly $10 per head in the early months of 2024.

The NPPC's ongoing engagement with the FSIS underscores the trials' significance for the future of pork processing. By pushing for the expansion and permanence of increased line speeds, the council aims to secure a more resilient and efficient supply chain, benefiting both producers and consumers while maintaining a focus on safety.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.