February 20, 2008

Smithfield cuts US sow herd to save on grain costs

Smithfield Foods Inc plans to reduce its US sow herd by 4 percent to 5 percent, or 40,000 to 50,000 sows, phasing in the reduction immediately.

The Smithfield, Va., pork and pork products processor said the move will result in the production of 800,000 to 1 million fewer market hogs annually.

The company currently raises 18 million market hogs annually.

Smithfield said economic factors such as record-level grain costs and federal ethanol subsidies have made it impossible to sustain its current production levels.