Meat&Poultry -- June 2014 - 15

PEDv continues to impact the US pork
industry with no solution in sight

T

he livestock industry's worst

of PEDv that has infected the US herd

Production cuts

nightmare is an animal disease

is believed to have originated in Chi-

The cumulative impact of the deaths

that suddenly emerges and keeps on

na; there are now four different ver-

means that fewer market hogs have

spreading. Just think bovine spongi-

sions in the US.

been available to pork processors from

form encephalopathy (BSE) and how

PEDv was first confirmed in the

early in the year. Several plants by ear-

it threatened to decimate Europe's

US on May 16, 2013, in a herd in

ly April, notably Smithfield Foods'

cattle industry after it appeared in the

Ohio. It has since spread to 30 states

huge Tar Heel, NC, plant, were run-

mid-1980s. Just think foot-and-mouth

and into Canada and Mexico. That

ning reduced hours. As of the week

disease, which caused huge destruc-

slaughter-hog prices consequently set

ended April 26, year-to-date com-

tion to the British livestock industry

new record highs is little consolation to

mercial hog slaughter was down 4.3

before that.

individual producers. Some have seen

percent on the same period a year ago.

The US beef industry has rebound-

their pig herds decline as much as 50

Pork production during the period was

ed from its four BSE cases, and per-

percent. Just over half the US breeding

down only slightly because of record-

haps fortuitously, the US has not had

herd has been affected, analysts say.

heavy hog carcass weights. Yet, the

an FMD case since 1929. But the pork

The pigs that have died had a com-

full impact of PEDv deaths is still to

industry, the third-largest in the world,

bined value of $280 million just to

show up, say analysts. The decline in

has a disease crisis on its hands that it's

produce, says industry economist

the number of market-ready hogs like-

struggling to contain, let alone solve.

Steve Meyer, president of Paragon

ly will not peak until July or August.

The spread of the disease has killed

Economics. At finishing, they might

Slaughter reductions this summer

8 million young pigs since June last

have been worth a combined $1.26

could be greater than 10 percent, rela-

year, cut pork production by about

billion, he says.

tive to last year's levels, Dr. Howard

1.40 billion lbs. and forced the whole-

"The pigs would have cost about

Hill, president of the National Pork

sale and retail price of pork to rise to

$40 each to produce - that is at the

Producers Council, told a congres-

record highs.

time that they died," says Meyer. "Had

sional hearing on April 30. Higher

The disease is Porcine Epidem-

they not died, they would have been

market weights because of lower feed

ic Diarrhea virus (PEDv). A type of

worth anywhere from $160 to about

costs and the industry's efforts to off-

coronavirus, PEDv is fatal to young

$200 each at finishing. None would

set some degree of PEDv pig losses

pigs and is only infectious to swine.

have been worth the $250 or so that

would offset 3 to 4 percent of that

Humans are not susceptible to the vi-

the remaining pigs will bring this

reduction. But pork production will

rus in any way. It was first detected in

summer. Profits on those pigs would

likely be down 6 to 8 percent in the

Britain in 1971, spread to Europe and

have run from zero last fall to about

third quarter. Such a reduction would

then to Asia. The particular variation

$50 per head this summer," he says.

push hog prices up by 15 percent to

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