Smithfield Foods Will End Grower Contracts in Utah
Smithfield Foods will end contracts with 26 hog farms in Utah to optimize its supply chain for more efficient operations in the face of an industry oversupply of pork, weaker consumer demand and high feed prices, the company said in a release.
“Our industry and company are experiencing historically challenging hog production market conditions,” Shane Smith, president and CEO of Smithfield Foods said in a release.
The contract terminations will result in the elimination of Smithfield positions that support contract farm relationships, Smithfield said. However, the company will offer relocation opportunities for affected employees and provide transition assistance. Although the exact number of positions is not yet determined, the company says the number of positions eliminated may be up to one-third of the 210 currently employed in its Utah hog production operations.
“Smithfield continues to take steps to improve operational efficiency and optimize our hog supply chain," Smith said. "These actions have included rebalancing production with East Coast harvest capacity, reducing our sow herd in Missouri and closing finishing operations in Utah. These are difficult decisions, but they are necessary to help our company remain competitive in this operating environment.”
Smithfield Foods is headquartered in Smithfield, Va. This U.S. food company employs nearly 60,000 people in seven countries and partners with thousands of American farmers.
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