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Gold/Mining/Energy : A Bottom in perishable commodities?/war stocks

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To: Bobby Yellin who wrote (71)12/21/1998 9:04:00 PM
From: goldsnow  Read Replies (1) of 178
 
Government Buys Pork To Help Farms

Monday, 21 December 1998
W A S H I N G T O N (AP)

IN ITS latest step to help struggling hog farmers, the government announced
Monday the purchase of $15 million worth of pork to supply food banks
during the holiday season.

"Traditionally, many of America's food banks face food shortages during
this time of year," said Agriculture Secretary Dan Glickman.

Prices for hogs are at their lowest prices in more than 40 years because of
an oversupply. Last week, Glickman formed a pork crisis task force that
would make recommendations to help the industry. On Monday, he held
meetings with meatpackers, retailers and farmers.

Glickman last month announced the purchase of $50 million in pork for
food assistance programs.

Steven Cohen, a National Pork Producers Council spokesman, said the
latest purchase was welcome, but doesn't go far enough.

"We hope it has an impact on prices paid to the producer because those
are the people who are definitely suffering," Cohen said.

Pork producers are seeking some direct government aid, and they also
want USDA to increase slaughter capacity, reduce imports of Canadian
hogs, increase government pork purchases and support a humanitarian lift
of hogs to Central America.

To encourage packers to step up production, USDA is requiring that the
pork it is buying be processed on Saturday or Sunday.

Meatpackers say their plants already are running at full capacity, six days a
week. "Everyone is trying to take a reasoned approach to this tough
situation," said Mark Klein, a spokesman for Excel, a subsidiary of
Minneapolis-based Cargill Inc.
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