US Removes Slaughter Speed Limits in Boon to Pork Processors

New Department of Agriculture regulations are set to bring U.S. pork processors a windfall.

Under rule changes announced Tuesday, which include a “modernized” inspection system, hog slaughter can be faster and maximum speeds have been removed. As a result, the USDA estimates average annual savings for large pork processing plants at $3.78 million as they increase production by 12.5%.

The changes come just as the world of pork is about to be turned on its head, with a deadly virus ravaging herds in China, the biggest producer and consumer. An unprecedented supply gap is expected to emerge as early as next year, and American hog producers are keen to fill the demand. There are already signs of pork shortages in China, with protein prices there hitting records.

Pork packers in the U.S. are already doing well as ample supplies keep down cash market prices for animals. According to HedgersEdge data, packers are making $40.30 a head, the highest this year.

The National Pork Producers Counciland the North American Meat Institute praised the rule. Under the new inspection system, which is voluntary, government meat inspectors will have “more time to focus attention on verifying food safety and animal welfare requirements, and will stimulate food safety innovation,” the Meat Institute said in a statement.