June 15, 2007

Smithfield Foods to honour agreements by Premium Standard Farms

US' biggest hog producer Smithfield Foods says it will abide on the restrictions placed on swine producer Premium Standard Farms by the state of Missouri.

Premium Standard Farms, which was acquired by Smithfield last month, was ordered in 1999 by Missouri court to install new technology to reduce odour and waste coming from pig farms in five northern Missouri counties, which Smithfield has agreed to honour.

Smithfield has also agreed to the following provisions: buying a certain percentage of pigs from Missouri farms, honour current contracts with Missouri supplies, and employ 75 full-time workers at its expanded Milan plant. The plant will also use the Department of Homeland Security's Electronic Employer Verification System to ensure workers are legal US residents.

In addition Smithfield is to give US$250,000 to the University of Missouri-Columbia for veterinary medicine and agricultural economic scholarships. The company is also to donate US$100,000 for community groups in towns where it operates plants.