Pig Producers Struggle to Stay Afloat After Swine Flu, Recession

By Jon Jordan, NEWS 9

OKLAHOMA CITY -- The pork industry is facing one of the most difficult years in its history and many local pig producers are worried the slump could run them out of business.

Lonnie Hoelscher has been in the pig industry for 15 years and said this year may prove to be the most difficult.

When the H1N1 virus surfaced as the Swine Flu back in April, Hoelscher said it was difficult to make a profit on a product believed to be tied to a deadly virus.

"The biggest concern is the effect it has on the pork industry as a whole," Hoelscher said.

Roy Lee Lindsey, the executive director of Oklahoma's Pork Council, said the Swine Flu issue has been just one problem for the industry that hasn't seen profits for 22 months. Lindsey said it all started about two years ago when the price of corn, which is used to feed pigs, nearly tripled as the popularity of ethanol grew.

"When you start having to feed $8 corn to livestock, your costs go through the roof," Lindsey said.

Lindsey said the global recession was another huge hit for the pig industry, and for some pig producers it could be the last straw.

"We don't know how long we'll be in this slump. It could be another nine months before we see profits again and that means some producers will be out of business by the time that happens," said Roy Lee Lindsey, Oklahoma Pork Council executive director.

Lindsey said the pork industry is a huge contributor to Oklahoma's economy. He said it's estimated that every dollar increase in pork production results in a nearly threefold increase in Oklahoma's economy.

Over the last 22 months producers in Oklahoma and across the country have lost a combined estimated $4 billion.