Pork packing plants are operating at five-to-seven percent below capacity. Kerns and Associates Economist Steve Meyer doesn’t expect the numbers to get much better than that. “At the beginning, I thought we’d be lucky to get back to ten percent of our previous capacity and I think we’ll get to five now.” COVID-19 related protocols like line spacing are factors. There is still a massive backlog of hogs in the system. If packers cannot operate at full capacity, the industry will be in “big trouble.” Based on the latest USDA Hogs and Pigs Report, Meyer says packers will not be able to process a million-plus hogs in the fourth quarter.
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