Pig Disease Could Send Pork Prices Skyward

The virus, which kills young hogs, has been rolling through U.S. pig farms.

January 15, 2014

CHICAGO – A deadly virus has spread to hog farms in 22 states, which could trigger a rise in pork prices for 2014, the Wall Street Journal reports. Thus far, lean-hog futures have jumped 6% since the middle of last month.

The porcine epidemic diarrhea virus (PED virus) was first spotted on U.S. soil last April, leaving thousands of piglets dead. The virus only kills young pigs, and has no harmful effects on humans or food safety. The American version is practically a carbon copy of a strain that curtailed pork production in China two years ago.

Since hog farms are required to provide death numbers or incidents of infection to federal inspectors, the impact of the disease is hard to mark. Smithfield Foods Inc., the biggest producer of pork worldwide, thinks around 10% of U.S. adult female hogs have been hit by the virus, which can in turn infect their piglets. Smithfield estimates around 3% of the total U.S. pig production would be lost because of the PED virus.

Hog farmers are scrambling to stop the spread of the virus, but it’s hard going. “This is the toughest disease we've ever gone through,” said Mike Brandherm, a general manager with Hitch Pork Producers. The Oklahoma company lost thousands of piglets last year because of the disease. “It was stunning how fast the disease spread. You feel helpless.”

U.S. retail pork prices will probably reach record highs in 2014, with the U.S. Department of Agriculture estimating a 2% to 3% bump. Bacon prices have already inched upward. “It’s definitely gone up more than I can afford,” said Mike Boero, who manages the meat department at a Piggly Wiggly. “People are only buying it if it's on sale.”

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