September 8, 2006

Smithfield to win big when Romania enters EU

US meat producer Smithfield Foods Inc said on Wednesday (Sep 6) Romania's expected entry into the EU next year would benefit the company's pork operations there.

This is because meat imports into that country from outside the EU would have to end.

Smithfield has invested heavily in Poland and Romania, and it is scheduled to open a meat plant in Romania soon.

Half the meat Romania consumes is imported, C. Larry Pope, Smithfield's chief executive officer, said. With EU membership, the country would be forced to buy domestically produced pork and Smithfield currently has a strong presence in the country. 

Smithfield has focused on eastern Europe because of cost advantages there, Pope said. The company also has a presence in Western Europe, most notably the recently purchased European meats business of Sara Lee Corp.

Smithfield is currently the largest pork producer in the US is also its fifth-largest beef producer. The company intends to expand its US beef operations and is working on earlier plans to buy or build a US beef plant.

The company has been working to produce more-profitable processed meat and convenience food items.

Smithfield is also currently eyeing the Butterball turkey unit and other meat units from ConAgra Foods Inc.