by Tyne Morgan, Farm Journal
Talk to any farmer who used to raise pigs, and they’ll more than likely tell you it all changed in 1998. That’s the year that draws memories of agony and financial pain for many. Hog margins bled red, and it spurred mass consolidation.
The reality today is margins for hog producers could be worse than 1998, and it’s spurring what some think could be a similar situation to 1998: more consolidation in pork and poultry.
Tyson Foods’ decision to shutter four poultry processing plants yet this year and into early 2024, combined with Smithfield Foods closing 35 pig farms, are strong signals consolidation is already occurring, according to ag economists.
“It has been decades since the last time we’ve seen these kinds of signs of consolidation, and that just tells you where the industry is today,” says Scott Brown, an extension livestock economist with the University of Missouri.
Of the four Tyson poultry processing sites that will soon close, two are located in Missouri. Those two plants alone result in the loss of nearly 2,200 jobs. Smithfield’s pig farm closures will cause the loss of 92 jobs.
Not only are rural communities grappling with the possible effects and job vacancies the announcements will leave, but producers are also forced to find a new home for their birds, with some poultry and livestock producers possibly forced to exit the industry all together.
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