National Pork Producers Council
On Friday, May 31, Farmland Industries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
This undoubtedly was a difficult decision for the Farmland management team, and one felt deeply by the many Farmland members and employees across the U.S. and around the world.
In announcing the decision, Farmland President and Chief Executive Officer Bob Terry indicated the company will continue its business of buying and processing hogs.
Secretary of Agriculture Ann Veneman has issued a statement noting the "U.S. Department of Agriculture will do everything in its power to protect the interests of individual pork producers during the reorganization of this farmer-owned cooperative".
The National Pork Producers Council acknowledges the Farmland decision comes at a very critical time for pork producers. With ample supplies of live hogs in the market projected into 2003, the issue of packing capacity is of paramount importance. Any reduction in capacity, for any reason, could result in significant challenges for pork producers. Farmland accounts for approximately 7% of daily packing capacity.
The NPPC is encouraged by Farmland's decision to continue to do business and hopes for a timely resolution that will be beneficial to pork producers, the pork industry, consumers and all parties involved.