Mike Pearson takes a look at some big changes on the horizon for Smithfield Foods and the hog industry.

Smithfield Foods is the world's largest hog processor and hog producer. The company producers 30 million hogs a year.

In 2013, Smithfield Foods was acquired by the WH Group and at the time was the largest U.S. company to be sold to a company in China.

Shareholders voted to spin off U.S. Smithfield Foods in the United States which passed with 99 percent of the votes.

This means Smithfield Foods will be a separately traded company.

This will mean a change in business strategy that could allow more concentration on the U.S. company

Critics point out the challenges it could face. Including being impacted more by the volatility in the hog markets. It also exposes it to more volatility in the commodity market and increasing regulatory scrutiny. However, it will provide, greater capital flexibility.

On the production side, a groundbreaking deal has been announced.

Murphy Family Ventures will take ownership of 150,000 sows and 3.2 million hogs from Smithfield Foods. This will make them one of the largest established pork producers.

It keeps Smithfield as a partner and will provide transportation and feed services. But allows Murphy Family Ventures to operate independently.

Related:Farm Progress America, Jan. 16, 2025

It's a return to their roots and restores their heritage as a hog producer.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.