The US Department of Agriculture (USDA) has announced plans to purchase $50.1m of pork loin for distribution through domestic food distribution programmes.
The purpose of the purchase is to encourage continued domestic consumption of the pork products, diverting them away from the normal trade routes. The purchase is made under the section 32 of the Agricultural Adjustment Act which is designed to redirect domestically manufactured unprocessed food produce to reduce agricultural surplus, promote food consumption and provide food for low income populations.
The funds will go some way to supporting the pork industry following an extremely challenging period, that has seen ‘the worst five months of average losses in 20 years’, according to National Hog Farmer.
The outlook does not look set to immediately improve for the US market with production costs continuing to rise. The combination of increased supply numbers, weaker demand and rising input costs has led to industry loses of over $1.4 billion over the five months period from November 2022 to March 2023.
The National Pork Producers Council (NPPC) tweeted its approval for the announcement, commenting on the boost this will provide to the industry: “These funds will support the pork market during challenging times and provide affordable proteins to consumers hit with elevated food costs.”