>> Cathy: THIS WEEK WE LEARNED THAT THE HYLIFE FOODS PORK PROCESSING PLANT IN WINDOM, MY.

IN COULD SHUT DOWN SOON.

WINDOM IS IN SOUTHWEST MINNESOTA AND POPULATION OF 4600 RESIDENTS.

MORE THAN A THOUSAND EMPLOYEES WORK AT THE PLANT.

THIS IS BIG DEAL.

HERE TO TALK ABOUT OPTIONS TO KEEP THE PLANT OPEN AND ABOUT THE STATE OF HOG PRODUCTION IN THE MIDWEST IS THOM PETERSEN, HE'S' MINNESOTA'S COMMISSIONER OF AGRICULTURE.

WELCOME BACK TO THE PROGRAM.

>> THANK YOU.

>> Cathy: A THOUSAND WORKERS IN A TOWN OF 46, 45 -- 4600 PEOPLE, WOW, THAT IS A BIG BIG DEAL.

WHAT ABOUT THE RIPPLE EFFECTS THROUGHOUT THAT PART OF THE ECONOMY?

>> YEAH, REALLY CAUGHT WHEN I THINK I GOT MY FIRST PHONE CALL THE MORTGAGE IT WAS ANNOUNCED EARLY IN THE MORNING AT 6:30 FROM A HOG FARMER, THAT'S THE FIRST THING WE THOUGHT OF, THOUSAND JOBS IN A TOWN OF EUSETAD.

THE WE HAVE MORE AND MORE BUSINESSES CALL IN AND SAY I TRUCK INTO THAT PLANT, THEY WASH THE TRUCKS ACROSS THE WAY, THE FARMERS, YOU THINK OF ALL JUST THE BACK THAT IT GOES AND THE WORKERS AND, YOU KNOW, THE INSECURITY THAT THAT BRINGS.

AND SO I THINK IT'S REALLY IMPORTANT AS WE TRY TO LOOK FOR A BUYER FOR THAT PLANT AND HOPEFULLY SOMETHING POSITIVE COMES UP SOON.

>> Eric: DOES CONSOLIDATION OF THE INDUSTRY COME INTO PLAY HERE AT ALL?

>> YOU KNOW, IT REALLY DOES.

THIS IS AN INTERESTING PLANT.

THEY PROCESS A LITTLE OVER 5,000 HOGS A DAY, SOME OF THOSE BIGGER PLANTS LIKE J BS IN WORTHINGTON OR SMITHFIELD, THEY DO CLOSE TO 20,000 A DAY SO WHEN YOU LOOK AT IT IT'S REALLY IMPORTANT THAT WE HAVE THOSE MID-SIZED PLANTS TO GET TO THAT CONSOLIDATION ISSUE, SO WE WANT TO WORK REALLY HARD TO SUPPORT THOSE PLANTS.

RIGHT NOW WITH HIGH CORN AND SOYBEAN PRICES, THE DEVALUE DOLLAR IN CANADA OR JAPAN WHERE A LOT OF OUR PORK GOES, THAT'S CREATED SOME CHALLENGES FOR THE INDUSTRY.

>> Cathy: WE SHOULD SAY THAT THE HIGH SOYBEAN AND CORN PRICES, I MEAN, THAT'S WHAT HOGS ARE EATING, RIGHT?

>> CORRECT.

AND, YOU KNOW, SO THAT JUST, YOU KNOW, LOT OF DIFFERENT THINGS HAPPENING THERE, WHETHER YOU HAVE THE WAR IN UKRAINE OR A DROUGHT IN ARGENTINA OR SLOW PLANTING SEASON THIS YEAR ALL THINGS CAN AFFECT THAT AND IT'S GOOD FOR CROP FARMERS BUT NOT ALWAYS GOOD FOR THE HOG MARKET.

IT'S KIND OF INTERESTING, RIGHT NOW THE BEEF MARKET PRICES ARE THE HIGHEST THEY'VE BEEN, PORK IS THE LOWEST IT'S BEEN.

SO A LOT OF THAT IS ALSO COVID BACKED UP AND CHANGED SOME OF OUR FOOD SYSTEM AS WELL.

>> Eric: DOES THIS CREATE A CLARION CALL THAT OTHER OWNER YOU'RE MIGHT COME IN, IN OTHER WORDS IS THIS GOOD ADVERTISEMENT THAT WE NEED A NEW BUYER?

>> YEAH, YOU KNOW, THE HYLIFE AND ALKING WITH THEM AND MEETING WITH LOCAL OFFICIALS OF THIS PLANT WHEN GLEN TAYLOR OWNED IT HE INVESTED A LOT OF MONEY INTO THE PLANT.

TRUST ME, I'VE TOURED A LOT OF PLANTS AROUND THE STATE, COUNTRY AND WORLD, THIS PLANT IS A TOP NOTCH PLANT AND I THINK THAT'S WHAT MAKES IT ATTRACTIVE FOR BUYERS SO WE'RE HOPEFUL SOMEBODY STEPS FORWARD SOON.

>> Cathy: THIS WAS A BEEF PROCESSING PLANT PRIOR, RIGHT?

>> CORRECT.

>> Cathy: AND THEN SWITCHED OVER TO HOGS.

COULD THEY GO BACK TO BEEF AND SAVE THE PLANT?

>> YOU KNOW, WE COULD AND I THINK THAT WHEN THINKING ABOUT THE WORKERS A LOT THAT WE WANT TO TRY TO KEEP AS MANY AS POSSIBLE AND I THINK THAT KEEPING IT IN PORK WOULD WORK WITH A LOT OF THE, IT'S SET UP FOR PORK PRODUCTION AND ALSO WITH WORKERS.

BUT IT COULD, BECAUSE THE PLANT IS IN SUCH GOOD CONDITION AND DIFFERENT THINGS THAT IT COULD POTENTIALLY DO THAT OR SOMETHING ELSE.

>> Eric: ARE THE DAYS OF THE STATE OFFERING INCENTIVE PACKAGES TO NEW COMPANIES TO COME HERE, ARE THOSE DAYS GONE, OR IS THAT STILL A POSSIBILITY, OR?

>> NO, ABSOLUTELY.

I THINK THAT'S SOMETHING, I WORK CLOSELY WITH OUR ACTING D.E.E.D.

OMMISSIONER KEVIN MACKINNON AND COUNTY OFFICIALS AND OTHERS THAT WE ALWAYS ARE TRYING TO BE AGGRESSIVE AND BRING PEOPLE INTO MINNESOTA AND SO, NO, THOSE DAYS ARE STILL HERE.

WE ALWAYS WISH WE HAD MORE MONEY AND RESOURCES BECAUSE WE COMPETE AGAINST OTHER STATES AND THINGS, BUT, NO, WE TRY TO BE AS AGGRESSIVE AS POSSIBLE TO BRING THOSE BUSINESSES HERE.

>> Cathy: SO IF A BUSINESS LOOKS AT THIS AND SAY, YOU KNOW WHAT, THERE'S NO UPSIDE US GETTING INTO THIS AND IT CLOSES, WHAT HAPPENS TO THE HOGS THAT ARE OUT THERE WITH SOME OF THESE FARMERS?

>> YEAH, IT'S A GOOD QUESTION.

AS WE LOOK AT THE MARKET AND WHERE THESE WILL GO, THEY'LL HAVE TO FIND OTHER HOMES, SOME PEOPLE MAY CHOOSE TO EXIT THE BUSINESS AND THAT'S TOO BAD.

WE HAVE FARMERS THAT HAVE LOANS THAT THIS WOULD BE VERY DIFFICULT ON THEM.

AND SO WE WILL WORK WITH THAT TOO TO TRY TO FIND HOMES FOR THOSE HOGS AS QUICKLY AS POSSIBLE AND ALREADY LOOKING AT THAT.

>> Eric: HAVE THEY GIVEN YOU A TIMELINE?

>> I THINK THAT WHAT THE PROCESS WAS ON THIS HYLIFE PLANT WAS THEY HAD TO GIVE A WARNING.

IT COULD BE AS EARLY AS A WEEK TO JUNE 2ND ON WHAT IT WOULD BE.

MY GUESS IS IT WILL BE A COUPLE OF WEEKS, HOPEFULLY THAT WE CAN -- HYLIFE IS KEEPING THE PLANT RUNNING, KEEPING EMPLOYEES AND ACTIVELY LOOKING FOR A NEW BUYER.

>> Cathy: WE'RE TALKING HOGS RIGHT NOW BUT REALLY QUICKLY HERE, HOW ABOUT OF COURSE BIRD FLU IS OUT THERE AGAIN.

WHAT ARE YOU HEARING FROM YOUR POULTRY PRODUCERS?

>> YEAH, KNOCK ON WOOD WE ONLY HAD ONE CASE TWO WEEKS AGO.

LAST YEAR AT THIS TIME WE HAD SEVERAL CASES.

AND THIS WAS A BACKYARD FLOCK, NOT A BIGGER COMMERCIAL FLOCK.

THE ONLY THING I CAUTION WITH WAS THAT WE HAVE FOUND WILD BIRDS HAVE EEN TURNED INTO THE RAPTOR CENTER AND WE KNOW THE VIRUS IS CIRCULATING, FARMERS BIG AND SMALL WHETHER YOU HAVE TEN BIRDS OR A THOUSAND BIRDS, TOUGH BIOSECURITY MEASURES AND GREAT THINGS IN PLACE.

FINGERS CROSSED BECAUSE THAT'S VERY STRESSFUL FOR FARMERS TO DEAL WITH THAT.