A local Missouri news outlet says that Smithfield Foods plans to close 37 sow farms. An employee who requested anonymity said the closures were to begin on May 1.
Smithfield Foods didn’t confirm the story or offer any more details regarding the closures when National Hog Farmer asked for clarification. “We’re always taking steps to enhance our business for consistently strong performance during favorable and unfavorable market conditions,” says Jim Monroe, vice president for corporate affairs with Smithfield.
In April, China’s WH Group informed shareholders and potential investors that it was expecting a 56 percent drop in its first quarter 2023 profit outlook, down from $395 million during the same time last year. “Hog raising costs remain elevated while pork prices have been adversely impacted by softer consumer demand,” Smithfield says.
The company also says the drop was mainly attributable to the challenging market conditions in the U.S. pork segment.