Smithfield Foods to Sell Hogs to Murphy Family Ventures

Smithfield Foods has entered into a landmark agreement with Murphy Family Ventures to restore the Murphy family as an independent pork producer, acquiring 150,000 sows and the associated market hogs. This deal will boost Murphy's capacity to produce around 3.2 million hogs annually for Smithfield's fresh pork operations and is part of Smithfield's broader strategy to streamline its business as it prepares for a potential U.S. stock market listing. The Murphy family, with a legacy in pork production since 1962, aims to innovate and uphold sustainable farming practices. Smithfield will continue to support operations through feed and transportation services, while Murphy Family Ventures anticipates closing the transaction by the end of 2024. This agreement reflects a generational shift in pork production capabilities and underscores the importance of independent operations in promoting competition and innovation in the industry. Smithfield's operational adjustments come in response to recent financial pressures within the pork sector, leading to reductions in hog production and farm closures across various states.