July 24, 2008
 

Smithfield forms partnership with small farmers in Romania

Smithfield Ferme, the Romanian subsidiary of US-based Smithfield Group, will form partnerships with small pig farmers in Romania to boost the company's development in the Romanian market.

Currently, the company has 50 contracts in various stages of negotiations with small farmers, said Bogdan Mihail, general manager of Smithfield Ferme, adding that 8,000 pigs could be reared per production cycle under the new partnerships.

Smithfield will contribute technology, expertise and raw materials while farmers carry out operations using structural funds, after which Smithfield will buy the livestock reared by them, he said.

This is part of Smithfield's planned investment on the Romanian market, estimated to be worthn US$600 million. By year-end, Smithfield Ferme will receive US$500 million worth of investments. Right now, the company has investments of US$157 million underway in Romania, in the construction of new farms and refurbishing of old ones, and the building of a feed mill.

American giant Smithfield has a global turnover of US$14 billion and is involved in the agriculture, livestock feed and pig-rearing business. Its Romanian farm division, Smithfield Ferme, currently owns 10,000 hectares of land and has rented plots of 10,000 to 15,000 hectares in Western Romania.