More Uncertainty for Pork Industry in a Very Uncertain Market

May 22, 2023

The Supreme Court’s ruling on Proposition 12 has added “a whole bunch more uncertainty to a very uncertain market,” said Lee Schulz, Iowa State University ag economist and Extension livestock specialist.

The entire pork production system will experience great financial burden from the expense of retrofitting existing barns and building new facilities to the expense incurred for further processing and retail segregation.

“A lot of those exact cost estimates are yet to be determined,” Schulz told AgriTalk’s host Chip Flory. “But what we know is this will result in a much higher cost to producers and those costs are going to vary throughout the different segments of the industry.”

The industry has to reconfigure, and some already have, Schulz explained.

“We know there's been some new construction that meets the Prop 12 guidelines. It's relatively small, but the first movers have decided to adjust. Often, those are ones that have a lower cost of production which may be because of economies of size, or operations that have been able to secure premiums.”

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Video: What Does 20 MILLION Hogs a Year Look Like?

?? The Multi-Plant System Processing 20 Million Hogs Annually in the Midwest JBS USA operates multiple large-scale pork processing facilities across the Midwest, including major plants in Iowa, Minnesota, and Indiana. Combined, these facilities have the capacity to process approximately 20 million hogs annually.

Each plant operates high-speed automated slaughter systems capable of processing up to 20,000 head per day, followed by fabrication lines that break carcasses into primals, sub-primals, and case-ready retail products.

Hog procurement is coordinated through electronic marketing platforms that connect regional contract finishing operations and independent producers to plant demand schedules. This digital procurement system allows for steady supply flow and scheduling efficiency across multiple facilities.

Processing plants incorporate comprehensive food safety systems, including pathogen intervention technologies, rapid chilling processes, and integrated cold-chain management. USDA inspection is embedded throughout the harvest and fabrication stages to ensure regulatory compliance and product integrity. Finished pork products — from bulk primals to retail-ready packaged cuts — are distributed through coordinated logistics networks serving domestic and export markets.