Smithfield Foods Inc. announced it lost
$12.6 million in the first quarter. Increased exports by the pork company to China, Russia, Japan and Europe helped boost sales 19%, to $3.1 billion, but rising feed and energy costs took their toll.
Meanwhile Smithfield's global restructuring continues. The company
is selling nearly 5% of its stock to Cofco Ltd., China's largest national agricultural-trading and processing company and is also selling its beef-processing and cattle-feeding business to
Brazil's JBS SA, which is making a stronger push into the U.S. It has also agreed to sell its Groupe Smithfield Holdings to Spain's Campofrio Alimentacion SA, a meat processor in which Smithfield already owns 24%, and in the process will increase its stake in Campofrio to 36%.
Other meat and poultry companies, such as
Tyson Foods Inc., are dealing with the same set of issues
- Maria Woehr
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