May 16, 2013

Smithfield to convert plant to ractopamine-free hogs

Smithfield Foods will soon raise half of its hogs on feed that does not contain the additive ractopamine.

Two Smithfield plants, which handle 43,000 hogs a day or about 10% of the US industry, already are ractopamine-free, Chief Executive Larry Pope said at the BMO Capital Markets Farm to Market Conference in New York.

On June 1, the company will convert a third plant to be ractopamine free. When that happens "over 50% of our operations will have no ractopamine as part of their feed rations," Pope said.

China, the world's largest pork consumer and the third largest market for US pork with sales of over HKD6.2 billion (US$800 million) last year, wants pork from the US to be verified by a third party from March 1 to be free of ractopamine, an additive that promotes lean muscle growth.

Russia, which imported HKD4.3 billion (US$550 million) worth of US beef, pork and turkey last year, has banned imports of meat from the US due to the presence of the food additive.

Smithfield, which was not immediately available for additional comment, in February said it was in the final stages of converting its plant in Tar Heel, North Carolina, the world's largest pork-processing facility, to be ready to meet China's new requirement before the March 1 deadline.