Dive Brief:
- Hormel has decided to reduce output at its pork-processing plant in Fremont, NE, and move to a four-day-a-week schedule.
- The maker of Spam blamed the cuts on the Porcine Epidemic Diarrhea virus that has killed millions of piglets across the nation.
- The news comes as Hormel, which also makes Skippy peanut butter and Hormel chilli, reported a 12% rise in net income in the most recent quarter, which fell short of Wall Street's profit expectations.
Dive Insight:
The PED virus continues to play havoc in the pork business. Hillshire has warned of price hikes, Tyson is taking hits to its share price and has warned that it too may scale back production.
At this rate, many may be wondering just what will be left of the industry when -- and if -- the PEDv runs its course and recedes.