Hog Futures Dip On Swine Scare

Tyson Foods Inc. of Springdale made a point in its press releases of referring to the recent outbreak of swine flu by the name “North American Influenza,” but such distinctions were lost on the market as both shares of meat producers and hog future contracts took hits as the number of reported U.S. cases grew.

Hog future contracts for June declined by 3 percent on April 27 and another 3.4 percent on April 28, according to the Chicago Mercantile Exchange.

A number of countries, including China and Russia, have banned U.S. pork from states such as Texas, Kansas and California, where cases were reported. The victims are recovering and the bans were expected to be temporary.

“Eating properly handled and cooked pork or pork products is safe,” said USDA Sec. Tom Vilsack in a statement issued April 29. “I want to reassure the public that there is no evidence at this time showing that swine have been infected with this virus.”

Despite its name, swine flu is transmitted person-to-person and not by hogs or by eating pork products.

Shares of Tyson plunged by 8.8 percent April 27, to $9.96, after closing at $10.93 on April 24.