Murphy Family Ventures and Smithfield announced a definitive agreement on Monday that will re-establish the Murphy family farming business, founded by Wendell Murphy in 1962.
Murphy, largely credited with creating the modern swine industry, was one of the largest independent pork producers in the U.S., Smithfield said in a release.
Murphy Family Ventures and Smithfield will establish a Murphy-owned farming business with capacity to produce approximately 3.2 million hogs annually for Smithfield’s fresh pork operations, the release said.
The company, which will be majority owned by the Murphy family, will assume ownership of 150,000 sows and the market hogs they produce that are currently owned by Smithfield. Production services, including the supply of feed and transportation services, will be provided by Smithfield.
“The Murphy family has enjoyed the past 24 years as a contract growing partner with Smithfield and we look forward to restoring our heritage as an independent producer,” Dell Murphy, president and CEO of Murphy Family Ventures, said in a release. “This agreement represents a generational transfer of independently owned swine production capabilities in North Carolina.”
Over the last 10 years, Shane Smith, president and CEO of Smithfield Foods, pointed out that the company has evolved into a more streamlined consumer packaged goods company focused on value-added fresh pork and packaged meats.
“With this agreement, we continue this transformation while ensuring a supply of hogs from a family farming operation with a long history in and a strong commitment to best practices in American pork production,” Smith said.
Murphy Family Ventures and Smithfield said they expect to close the transaction by the end of 2024.
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