U.S. hog market drops as flu hits pork sales

By Bob Burgdorfer

CHICAGO (Reuters) - U.S. hog prices fell sharply on Thursday as the market grew more worried that consumers afraid of swine flu will avoid pork, despite scientific evidence the meat is safe and the flu spread by human contact.

Georgia, Minnesota and Nebraska confirmed their first human cases of the H1N1 flu, commonly called swine flu. Other states that have had cases include California, Texas, and Kansas.

In all, 13 countries have banned pork or meat from U.S. states that have had human cases of the flu. That list includes China and Russia, important buyers of U.S. meat that have been working to increase their own meat production.

U.S. wholesale pork prices fell on Wednesday due to an expected slowdown in export sales and to meat companies cutting prices to induce sales in the current flu-sensitive environment, analysts said.

"It is flu-related in that business has slowed down," said Dennis Smith, a livestock broker with Archer Financial.

The flu originated in Mexico, and traders said a sharp slowdown in consumer activity there could hurt U.S. pork sales to that country, a leading buyer of U.S. beef and pork.

More than 176 people have died in Mexico since the first cases were reported there last week. The only U.S. death was a Mexican boy who had travelled to Texas.

Mexico's government on Wednesday called on large segments of the economy to shut down for five days in an effort to stop the disease from spreading further.