July 4, 2007

Smithfield Foods to increase its prices

The rising cost of raw materials has prompted Smithfield Foods to critically raise its own prices to offset profit losses, Robert Manly, Smithfield's executive president said. 

Manly said the company-- US' largest pork processor -- also plans to expand its international operations, particularly in growing markets like Romania.

He noted Smithfield is also mulling to increase its pig production by 2 million pigs per year to lower costs. The company also hopes to increase its profit to 10 cents per pound of meat produced as the company currently produces about 3 billion pounds of processed meats in the US and makes between 4 cents and 6 cents per pound, he added.

The increasing corn prices due to surging global demand and for ethanol has forced Smithfield to push its prices up. Both ethanol and animal feed are made with the grain.