April 19, 2006

Smithfield increases stake in UK pig-breeding company

Smithfield Foods, the top producer of pork in the US, is extending its reach abroad and taking an undisclosed equity stake in UK-based pig-breeding company ACMC.

This move follows close cooperation between the two companies in major projects in eastern Europe.

ACMC have shipped great grandparent stock to countries like Poland and Romania, spawning herds through agreements with farms in both countries. Both Polish and Romanian staff were trained in the United Kingdom to ensure standardised protocols and procedures.

The company is responsible for genetic monitoring and assisting in on-going breeding development through a breeder's license and technology agreement. It is repaid through genetic fees paid on slaughter pigs.

ACMC has enjoyed a successful working relationship with Smithfield Foods and the company sees Smithfield's increased equity stake as a positive step for the future development of ACMC, chairman Stephen Curtis commented.