Smithfield Foods reports 20% drop in hog output (updated)

WH

27/09/2024 17:45

(Adds company statement in paragraph 2)
       Sept 27 (Reuters) - Smithfield Foods has reduced its hog
production by about 20% by cutting farm operations in multiple
U.S. states, the world's largest pork processor said on Friday.
        In an emailed statement, the company attributed the
decline to the closure of its slaughtering plant in Vernon,
California, in early 2023 and other strategic decisions to
improve and optimize the hog production business unit.
  
    Earlier this year, the Virginia-based firm also announced
the separation of its European operations as it plans to list in
the U.S., but it has not revealed a timeline yet.
    "Smithfield's footprint has changed significantly as it has
streamlined and optimized operations to focus on the North
American market," the company said in a statement on greenhouse
gas reporting.
    It has reduced farm operations in Missouri, Utah, Arizona,
California and the East Coast, it added.
    Pork producers lost money last year as pig prices and
consumer demand for pork struggled at a time of high costs for
labor and other expenses, leading them to cut down supply. 
    Last year, Smithfield, owned by Hong Kong's WH Group
 0288.HK , said it would end contracts with 26 farms in Utah,
permanently close 35 farm sites in Missouri, and close a
processing plant in North Carolina. 
    Tyson Foods, the biggest U.S. meat company by sales, shut an
Iowa pork plant this year.
    

 (Reporting by Seher Dareen in Bengaluru; Editing by Janane
Venkatraman)
 ((Seher.Dareen@thomsonreuters.com;))