Two recent announcements will add substantially to packing plant capacity. Seaboard Farms, Inc. has announced plans to build its second plant. Farmland Foods will double shift its plant at Crete, NE.
Seaboard plans to build a $130 million processing plant at Elwood, KS. Elwood is just across the river from St. Joseph, MO, which recently rejected an offer from Seaboard.
The high-tech, state-of-the-art facility will slaughter 16,000 head/day, 4 million head/year. The plant will operate one full shift by the fourth quarter of 2002.
Farmland is adding a second shift to its plant at Crete, NE. The move will more than double the slaughter capacity of the plant from 7,500 to 16,000 hogs/day. The creation of double shifts will require an additional 2.5 million hogs/year.
There was a lot to be positive about in the pork industry the last week of October. I realize it is difficult to be optimistic when you are still losing $25 to $30/head. I also realize that positive news at this point could be as dangerous as it is welcome. But facts are facts, and we must recognize them.
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As I begin this week's column, I"m reminded of two different "flip side" statements that may help characterize the topic at hand. The first is the old Archie Campbell schtick - "That's good - no that’s bad," which I have used before. The second reflects President Truman's frustration with economists' incessant use of the qualifier - "on the other hand" - to introduce the contrary opinion on a given topic. President Truman once demanded in his usual colorful language: "Will someone please find me a *!&%$*?>
