February 29, 2008

Smithfield looks on Chinese market, no decision on beef

US meat producer, Smithfield Foods Inc., is seriously considering investments in China, but no decisions have been made, chief executive C. Larry Pope said Thursday.

Pope spent 10 days in China in January to meet with government and corporate officials.

China, he said, is a market the company has not paid attention in the past but is gaining more attention nowadays.

The country's gargantuan need for meat has spurred Smithfield's interest.

Currently, Smithfield has extensive hog and meat processing operations in Europe.

Pope also said that no decision has been reach on the company's beef business, which includes several beef processing plants and joint ownership in the nation's largest cattle feeding operation.

The problem, according to past comments by Pope, is that the beef plants are not located near the company's cattle supplies.

Smithfield reported Thursday that the beef unit had third quarter revenues of almost US$675 million, up from US$638 million a year earlier, and that operating profit increased to US$12.2 million from US$1.3 million a year before.