Summary
Swine Flu has become the media's and publics' favorite topic and concern. The name alone is impacting the swine producers and pork processors in Mexico, the US and Canada. While the WHO has gone to calling the virus that is not spread by pigs, by its technical name Influenza A-H1N1. There has been so much damage done already that it will take time and major public relations and advertising to stop the blood letting.
Analysis
While a rose by any other name is still a rose, a swine flu called A-H1N1 could have a major impact on the swine, pork processing and related food industries.
In Mexico pork sales are disappearing, down over 50% and reportedly down as much as 85%. This article and an interview by the CEO of Smithfield on CNBC followed by a discussion with Jim Cramer, illustrate the dilemma that the hog industry is having.
The media in the US and the world grabbed the name Swine Flu and has not stopped running with it. Even after the World Health Organization agreed to change the name to Influenza A-H1N1 after its technical name, all the radio, TV and newspapers I have checked in the past 24 hours continue to use the term Swine Flu or the equivalent in the local language. Only CBS here in Chicago has announced they will begin using the H1N1 name instead of swine flu.
There has not been a single pig found so far with this swine flu and it is very clear that it is being passed people to people. It and all other virus can not be passed in properly cooked meats.
Nevertheless in Mexico supermarkets have seen their pork sales disappear and they are unable to keep chickens on the shelves as they fly off the shelves (pardon the pun). It should be noted that the US exports a large amount of pork, pork parts and pork products to Mexico. The US pork processing industry is also being hit by import restrictions from major buyers like China and Russia.
Hog and hog belly prices have been dropping all week (slight dead cat bounce today), as has Smithfield. Poultry and poultry companies such as Sanderson Farms have been recommended as potential beneficiaries of this soon to be pandemic by this and other analysts. any other name is still a rose, a swine flu called A-H1N1 could have a major impact on the swine, pork processing and related food industries.
In Mexico pork sales are disappearing, down over 50% and reportedly down as much as 85%. An interview with Larry Pope, the CEO of Smithfield on CNBC followed by a discussion with Jim Cramer on May 1st, illustrate the dilema that the hog industry is having. The attached article explains the fall out from the US hog industry perspective.
The media in the US and the world grabbed the name Swine Flu and has not stopped running with it. Even after the World Health Organization agreed to change the name to Influenza A-h1n1 after its technical name, all the radio, TV and newspapers I have checked in the past 24 hours continue to use the term Swine Flu or the equivalent in the local language. Only CBS here in Chicago has announced they will begin using the H1N1 name instead of swine flu.
There has not been a single pig found so far with this swine flu and it is very clear that it is being passed people to people. It and all other viruses can not be passed in properly cooked meats.
Nevertheless in Mexico supermarkets have seen their pork sales disappear and they are unable to keep chickens on the shelves as they fly off the shelves (pardon the pun). It should be noted that the US exports a large amount of pork, pork parts and pork products to Mexico. The US pork processing industry is also being hit by import restrictions from major buyers like China and Russia.
Hog and hog belly prices have been dropping all week (slight dead cat bounce today), as has Smithfield. Poultry and poultry companies such as Sanderson Farms have been recommended as potential beneficiaries of this soon to be Pandemic by this and other analysts.
