Smithfield to reduce sow herd by 5 percent
Smithfield Foods has announced that it will cut its US
sow herd by 4-5% or 40,000 to 50,000 sows â€” a move that will ultimately result
in production of 800,000 to 1 million fewer market hogs
The company raises 18 million market hogs annually at present and will begin
introducing these changes immediately.
"Given the economics for raising hogs today, we
cannot continue on the current path; something has to change," said C. Larry
Pope, president and chief executive officer.
"Grain costs continue at record levels, with the potential of escalating,
given the current US government policy favouring corn for ethanol. Today the
economics are very challenging, and we believe that these increased costs will
translate eventually into still higher food costs for the American consumer. In
the meantime, Smithfield is taking immediate action to improve the efficiencies
of our live production operations."
Smithfield is the leading processor and marketer of fresh pork and packaged
meats in the United States, as well as the largest producer of hogs with sales
â€¢ Smithfield Foods
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