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Rock Valley Bee from Rock Valley, Iowa • Page 18

Publication:
Rock Valley Beei
Location:
Rock Valley, Iowa
Issue Date:
Page:
18
Extracted Article Text (OCR)

Rock Valley Bee, October 15, 1975 Section Page Two Pork Processing Enhances Iowa's Economy Although pork processing plants are currently operating at less than capacity, the pork processing industry makes a significant contribution to the economy of Iowa. That's the consensus of two extension specialists at Iowa State University. Meat specialists Bob Rust and economist Marvin Skadberg paint a bright picture of pork processing. "This Iowa pork producer faces no shortage of slaughter facilities," commented Rust. Iowa has the capacity to slaughter around 21 million hogs per year.

Approximately 20 major slaughter and processing facilities scattered throughout Iowa are currently operating. Competition within the industry combined with a shortage of hogs for slaughter has forced the closing of a few plants within the past year. "This year almost 17 million head are expected to be produced in Iowa," commented Skadberg. If all of these hogs were slaughtered in Iowa, plants would operate at only 80 percent of capacity. As the number of hogs available starts dropping, pork processing facilities become less efficient.

Because of high fixed costs, less efficient processing facilities contribute to the spread between prices a producer receives and the prices that consumers must pay. "Operating at less than capacityJs one of the biggest problems facing processors," continued Rust. As long as the number of slaughtered hogs remains low, Skadberg expects adjustments to occur in processing. These adjustments will take the form of more processing plants being closed. If producers increase production in 1976, Skadberg predicts that pork processing will make a recovery and increase the efficiency of the marketing system by operating at full capacity.

Processing provides full, year-round employment when hogs are available. Rust elaborated on the contributions of the processing industry to Iowa. 20,000 lowans are employed in hog he said. This doesn't include the number of workers em- ployed in industries serving processing. These service industries include trucking, railroads, utilities, paper box manufacturers, can manufacturers and many others.

Skadberg said pork processing has a $1 billion payroll in Iowa. Besides the influx of this money into Iowa communities, processing also makes a big contribution in tax dollars to local governments. Rust noted that all major marketers of branded pork have processing facilities within the Hawkeye State. "Iowa pork is found in every major city in the U.S.," said Skadberg. Over 90 percent of the pork produced in Iowa is consumed outside of the state.

Both specialists agree that the high numbers and scattered locations of processing facilities arc a big advantage Enjoy Pork HooRAy FOR Hoqs Pork Production Is Important to Our Economy Serving Pork Prodicers With LUMBER BUILDING SUPPLIES Farmers Lumber Co. Alvin Miller, Mgr. ROCK VALLEY, IOWA for pork producers. "Ail major processors operate buying stations," continued Skadberg. Alto- gether, pork producers have available 1,2.00 interior buying locations within Iowa, an average of 12 per county.

FREEZER EMPTY? We'll custom butcher your meat with expert care, under sanitary conditions, and without any waste. We'll process, package and freeze the the way you want it. Enjoy the fresh meat cuts you like most, everyday bring your meat to us. Pork Production Is Important to Our Economy VALLEY LOCKERS ROCK VALLEY, IOWA Hamatot xuw' WHAT'S THE PORK CHECKOFF ALL ABOUT? Profit from hogs, that's what! Pork Producers invest their checkoff nickels with one goal in mind: to create enough consumer demand to raise hog prices to a level which allows producers to make a fair profit on their Our Association doesn't claim full credit for today's hog we do think our self- help program is helping. MUCH MORE COULD BE DONE with more nickels, from more members If we could reach 10 million consumers with messages about our great lean pork Prices would stay up longer Down cycles would be shorter Hog profits would be more stable YOU CAN HELP TWO WAYS 1.

Join our Pork Producers Association (dues are nominal) 2. Ask your hog buyer to deduct nickels on your hogs THIS OCTOBER PORK MONTH INVITATION FROM THE IOWA PORK PRODUCERS ASSOCIATION I.

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About Rock Valley Bee Archive

Pages Available:
5,596
Years Available:
1897-1975