Smithfield Foods

Founding and early history , Virginia The company traces its history to 1936, when Joseph W. Luter Sr. and his son, Joseph W. Luter Jr., opened the Smithfield Packing Company in Smithfield, Virginia. The men were working for the meatpacker P. D. Gwaltney, Jr. & Co. when they set up the company; Joseph W. Luter Sr. was a salesman and Joseph W. Luter Jr. the general manager. Financing for the new company came from Peter Pruden of Suffolk and John S. Martin of Richmond. In an interview in 2009, Joseph W. Luter III described how the Luters would buy 15 hog carcasses a day, cut them up, box them, and sell them to small stores in Newport News and Norfolk. They built the Smithfield Packing Company plant in 1946 on Highway 10. By 1959 they had a workforce of 650. Joseph W. Luter Jr. served as Smithfield's chief executive officer (CEO) until his death in 1962. He remained as CEO until 2006 and as chairman until the company was sold to WH Group in 2013. At that point his stock was valued at $21.1 million and Joseph W. Luter III's at $30 million. Mergers and acquisitions (1981–2007) Joseph W. Luter III began his expansion of Smithfield in 1981 with the purchase of its main competitor, Gwaltney of Smithfield, for $42 million. including Esskay Meats/Schluderberg-Kurdle in Baltimore, Valley Dale in Roanoke, Farmland Foods of Kansas City was added in 2003, as were Sara Lee's European Meats, ConAgra Foods Refrigerated Meats, Butterball (the poultry producer), Brown’s of Carolina, and Premium Standard Farms in 2007. Smithfield sold its 49 percent share in Butterball in 2008 for an estimated $175 million. In 2009 Smithfield was assessed a $900,000 penalty by the U.S. Justice Department to settle charges that the company had engaged in illegal merger activity during its takeover of Premium Standard Farms. The acquisitions caused concern among regulators in the United States regarding the company's control of the food supply. After Smithfield's purchase of Murphy Family Farms in 1999, the Agriculture Department described it as "absurdly big". As of 2006 four companies—Smithfield, Tyson Foods, Swift & Company, and Cargill—were responsible for the production of 70 percent of pork in the United States. a sale first suggested in 2009. At the time of the deal, although it had 475 million pigs of its own, roughly 60 percent of the global total. According to Lynn Waltz, the Chinese ate 85.3 pounds of pork per person in 2012, compared to 59.3 in the US. Shuanghui said it would list Smithfield on the Hong Kong Stock Exchange after completing the takeover. On September 6, 2013, the US government approved Shuanghui International Holding's purchase of Smithfield Food, Inc. The deal was valued at approximately $7.1 billion, which included debt. It was the largest stock acquisition by a Chinese company of an American company. The deal included Smithfield's 146,000 acres of land, which made WH Group one of the largest overseas owners of American farmland. Mergers and acquisitions (2016-2019) In 2016, Smithfield purchased the Californian pork processor Clougherty Packing PLC for $145 million, along with its Farmer John and Saag's Specialty Meats brands. Smithfield also acquired PFFJ (Pigs for Farmer John) LLC and three of its farms from Hormel Foods Corporation. In August 2017 Smithfield acquired Pini Polska, Hamburger Pini, and Royal Chicken of Poland, and in September that year it announced that it would purchase two Romanian packaged-meat suppliers, Elit and Vericom. In 2019 it acquired Maier Com in Romania. Nasdaq IPO (2025) On Jan 28, 2025, Smithfield became publicly traded with an initial public offering of 26 million shares and was listed on the Nasdaq, though WH Group retained 90% of the company stock. In September 2025, An additional 19.5 million shares were sold, reducing WH Group's majority ownership to 88% of the company. Nathan's Famous (2026) On January 21, 2026 Smithfield agreed to acquire hot dog brand Nathan's Famous in a deal worth $450 million. Smithfield already had an exclusive license to manufacture, distribute, market and sell Nathan's product, but the licenses had been set to expire in March 2032. Successfully closing the acquisition will secure Smithfield’s rights to this iconic brand into perpetuity. ==Operations==

Employees, brands In 2016, Smithfield had 50,200 employees in the United States, Mexico and Europe, and an annual revenue of $14 billion. As of July 2017, the company's brands included Armour, Berlinki, Carando, Cook's, Curly's, Eckrich, Farmland, Gwaltney, Healthy Ones, John Morrell, Krakus, Kretschmar, Margherita, Morliny, Nathan's Famous, and Smithfield. In 2019 it introduced Pure Farmland, a plant-based brand of soy burgers and meatballs. In early 2019 Smithfield re-branded its food-service business, Smithfield Farmland, as "Smithfield Culinary." The company created advisory boards composed of chefs, established partnerships with culinary schools, and engaged in substantial research and development to improve its products. Smithfield Culinary uses the Carando, Curly's, Eckrich, Farmland, Margherita, and Smithfield brand names. Vertical integration, contract farms Smithfield began buying hog-farming operations in 1990, making it a vertically integrated company. As a result, it was able to expand by over 1,000 percent between 1990 and 2005. Smithfield retained ownership of the pigs. Only farmers able to handle thousands of pigs were contracted, which meant that smaller farms went out of business. Joseph W. Luter III said that vertical integration produces "high quality, consistent products with consistent genetics". Smithfield Foods states that the lagoons contain an impervious liner made to withstand leakage. According to Jeff Tietz in Rolling Stone, the waste—a mixture of excrement, urine, blood, afterbirths, stillborn pigs, drugs and other chemicals—overflows when it rains, and the liners can be punctured by rocks. In 2018 it announced an "animal waste-to-energy" plan; the company said it would spend $125 million over ten years, along with Dominion Energy, to cover the lagoons in North Carolina, Utah and Virginia with "high-density plastic and digesters" to capture the methane gas and direct it into a local pipeline. This image was taken inside a Smithfield facility in Virginia in 2010. Smithfield said in 2007 that it would phase out its use of gestation crates by 2017. Pregnant sows spend most of their lives in these stalls, which are too small to allow them to turn around. Pregnancies last about 115 days; the average life span of a sow in the United States is 4.2 litters. When they give birth, they are moved to a farrowing crate for three weeks, then artificially inseminated again and moved back to a gestation crate. The practice has been criticized by animal-welfare groups, supermarket chains, and McDonald's. but in 2011 it returned to its commitment, and to doing the same in Europe and Mexico by 2022. In January 2017 the company said that 87 percent of sows on company-owned farms were no longer in crates, and that it would require its contract farms to phase out crates by 2022. As of January 2018, on company-owned farms in the United States, Smithfield confines pregnant sows in gestation crates for six weeks during the impregnation process. When pregnancy is confirmed, they are moved to pens within a group-housing system for about 10 weeks, then to a farrowing crate, then back to a gestation crate to be impregnated again. It uses two forms of group housing: in one system, 30–40 sows are kept in a pen with access to individual gestation crates; in the other system, five or six sows are housed together in a pen. In July 2017 Direct Action Everywhere filmed the gestation crates at Smithfield's Circle Four Farms in Milford, Utah. The FBI subsequently raided two animal sanctuaries searching for two piglets removed by the activists. In January 2018 Smithfield released a video of the gestation and farrowing areas on one of its farms. California closures In 2020, Smithfield announced the closure of its plant in San Jose, California and the layoff of 139 workers from the site. Smithfield says it closed the plant due to the expiration of its lease and the decision of its landlord to sell. The local union that represented the plant's workers publicly questioned Smithfield's explanation. In June 2022, Smithfield announced the closure of its plant in Vernon, California, by early 2023, and also stated that it is "exploring strategic options to exit its farms in Arizona and California". The company cited the high costs for the company to conduct business within the state of California. Operations in Mexico The earliest confirmed case of the H1N1 virus (swine flu) during the 2009 flu pandemic was in a five-year-old boy in La Gloria, Mexico, near several facilities operated by Granjas Carroll de Mexico, a Smithfield Foods subsidiary that processes 1.2 million pigs a year and employs 907 people. This, together with tension between the company and local community over Smithfield's environmental record, prompted several newspapers to link the outbreak to Smithfield's farming practices. According to The Washington Post, over 600 other residents of La Gloria became ill from a respiratory disease in March that year (later thought to be seasonal flu). The Post writes that health officials found no link between the farms and the H1N1 outbreak. Residents alleged that the company regularly violates local environmental regulations. According to The Washington Post, local farmers had complained for years about headaches from the smell of the pig farms and said that wild dogs had been eating discarded pig carcasses. Smithfield was using biodigesters to convert dead pigs into renewable energy, but residents alleged that they regularly overflowed. Residents also feared that the waste stored in the lagoons would leak into the groundwater. Smithfield's ramp up of exports to China has occurred in the face of headwinds in the form of 62% tariffs designed to protect China's hog farmers, who largely have small operations. Pork industry trade groups claim that the United States could export twice as much pork to China if the tariffs were lifted. Production volume As of 2006 Smithfield raised 15 million pigs a year and processed 27 million, producing over six billion pounds of pork and, in 2012, 4.7 billion gallons of manure. Killing 114,300 pigs a day, it was the top pig-slaughter operation in the United States in 2007; along with three other companies, it also slaughtered 56 percent of the cattle processed there until it sold its beef group in 2008. ==Lawsuits==

In 2010, a jury in Jackson County, Missouri, awarded 13 plaintiffs $825,000 each against a Smithfield subsidiary, Premium Standard, and two other plaintiffs $250,000 and $75,000. The plaintiffs argued that they were unable to enjoy their property because of the smell coming from the Smithfield facilities. In 2017, in Wake County, North Carolina, nearly 500 residents sued a Smithfield subsidiary, Murphy-Brown, in 26 lawsuits, alleging nuisance and ill health caused by smells, open-air lagoons, and pig carcasses. Residents said their outdoor activities were limited as a consequence, and that they were unable to invite visitors to their homes. Smithfield said the complaints were without merit. On August 3, 2018, a federal jury awarded six North Carolina residents $470 million in damages against Murphy-Brown LLC. The verdict included $75 million each in punitive damages, plus $3–5 million in compensatory damages for loss of enjoyment in their properties. A state law capping punitive damages lowered that amount to $94 million. The plaintiffs had filed suit for "stench odor, truck noise and flies generated near their homes on Kinlaw Farm in Bladen County." In December 2018, several plaintiffs living near a Smithfield contract farm in Sampson County received compensatory damages ranging from $100 to $75,000. In March 2019, 10 plaintiffs were awarded $420,000 for nuisance by a jury in North Carolina. State representatives of agriculture in North Carolina accused lawyers and their plaintiffs of attempting to put farmers out of business. Steve Troxler, North Carolina's agricultural commissioner, said the litigation could harm farm production across the country; he argued that legal abuse of the word nuisance is a mounting concern. In 2018, the Humane Society of the United States sued Smithfield for false and misleading advertising, alleging that Smithfield had continued to confine sows in gestation crates despite public claims to the contrary. A 2021 motion to dismiss the case from Smithfield was denied. In 2024, Smithfield agreed to pay $2 million after violating child labor laws. Due to hazardous conditions, meat processing plants are prohibited from employing people under the age of 18 in the U.S. According to the Minnesota Department of Labor and Industry, Smithfield employed at least 11 people aged 14-17 between 2021 and 2023, all of whom performed hazardous work. ==Environment impact==

Emissions , October 2017 Smithfield has come under criticism for the millions of gallons of untreated fecal matter it produces and stores in its lagoons. In 2012 it produced at least 4.7 billion gallons of manure in the United States; during their lifetimes, every pig will produce 1,100–1,300 liters. Its facilities in North Carolina came under scrutiny in 1999 when Hurricane Floyd flooded lagoons holding fecal matter; many of Smithfield's contract farms were accused of polluting the rivers. Smithfield reached a settlement in 2000 with the state of North Carolina, agreeing to pay the state $50 million over 25 years. In 2005 the company received ISO 14001 certification for its hog production and processing facilities in the US, with the exception of new acquisitions, and, in 2009, 14 plants in the US and 21 in Romania received certification. By 2011, 578 Smithfield facilities (95 percent of the company's global operations) were ISO 14001-certified. Smithfield subsidiary Murphy-Brown reached an agreement in 2006 with the Waterkeeper Alliance, once one of Smithfield's biggest critics, to enhance environmental protection at the Murphy-Brown's facilities in North Carolina. In 2009 the company said it had reduced its emissions since 2007, including its greenhouse-gas emissions by four percent; it attributed this to the divestiture of the beef group. In 2018, Smithfield Foods faced criticism for widely publicized failures of its hog waste lagoons, this time in the wake of Hurricane Florence. Despite statewide attempts to modernize facilities after Hurricane Floyd, more than a hundred and thirty of North Carolina's hog waste lagoons were compromised by floodwaters during Hurricane Florence. Thirty-three lagoons overflowed entirely, discharging their contents into the Cape Fear River watershed. Packaging reduction In 2009 Armour-Eckrich introduced smaller crescent-style packaging for its smoked sausages, which reduced the plastic film and corrugated cardboard the company used by over 840,000 pounds per year. In 2010 the John Morrell plant in Sioux Falls, South Dakota, reduced its use of plastic by 40,600 pounds a year, and Farmland Foods reduced the corrugated packaging entering waste streams by over five million pounds a year. Smithfield Packing used 17 percent less plastic for deli meat. The company also eliminated 20,000 pounds of corrugated material a year by using smaller boxes to transport chicken frankfurters to its largest customer. Smithfield Renewables Smithfield and Dominion Energy formed a joint venture, Align Renewable Natural Gas, in 2018 to make and distribute renewable natural gas from biological sources. The two sides they will invest $500 million by 2028. Align harvests methane from Smithfield's farms. It can be mixed and used entirely interchangeably with conventionally produced natural gas. Align will sell gas collected in Utah to California's low carbon fuel standard market. The two companies aspire to produce enough gas through Align to power 70,000 homes by 2028. Align's first project started serving 3,000 homes in Milford, Utah in 2019. Dominion allows its customers to buy blocks or renewable natural gas from Align in increments of $5 on a voluntary basis. One $5 increment is worth about half a dekatherm of energy. In 2019, a joint venture, called Monarch Bioenergy, in Northern Missouri with Roeslein Alternative Energy constructed a "low-pressure natural gas transmission line" between a Smithfield farm and the city of Milan, Missouri. The construction was part of Smithfield Renewables' "manure-to-energy" project. In early 2020, Smithfield and Roeslein announced an additional $45 million investment in their joint venture. This investment will fund adding gas harvesting infrastructure to at least 85% of Smithfield's hog farms in Missouri. Smithfield also has other gas projects located in North Carolina, Utah, and Virginia. Smithfield also has a deal with Duke Energy to harvest renewable natural gas from its farms in North Carolina. Antibiotics Concerns have been raised about Smithfield's use of low doses of antibiotics to promote the pigs' growth, in addition to using antibiotics as part of a treatment regimen. The concern was that the antibiotics were harmful to the animals and were contributing to the rise of antibiotic-resistant strains of bacteria. Smithfield said in 2005 that it would administer antibiotics only to animals who were sick themselves, or who were in close proximity to sick animals; however, in CAFOs all pigs are in close proximity to each other. The company introduced an antibiotic-free Pure Farms brand in 2017; it promoted the brand as free of antibiotics, artificial ingredients, hormones, and steroids. ==Animal welfare==

2006 CIWF investigation In Poland, Smithfield Foods purchased former state farms for what its CEO said were "small dollars" and turned them into CAFOs using grants from the European Bank for Reconstruction and Development. Compassion in World Farming (CIWF) conducted an undercover investigation into Smithfield CAFOs there in 2006, and found sick and injured animals in the barns, and dead animals rotting. The CAFOs were run by Animex, a Smithfield subsidiary. In one barn, 26 pigs were reported to have died in a five-week period. The CIWF report said of a Smithfield lagoon in Boszkowo that the surrounding land was littered with waste including dangerous objects such as needles." 2010 HSUS investigation In December 2010 the Humane Society of the United States (HSUS) released an undercover video taken by one of its investigators inside a Smithfield Foods facility. The Associated Press (AP) reported that the investigator videotaped 1,000 sows living in gestation crates. According to the AP, the material shows a pig being pulled by the snout, shot in the head with a stun gun, and thrown into a bin while trying to wriggle free. The investigator said he saw sows biting their crates and bleeding; staff jabbing them to make them move; staff tossing piglets into carts; and piglets born prematurely in gestation crates falling through the slats into the manure pits. In response, Smithfield stated that it does not tolerate abuse or otherwise improper care of animals. Smithfield announced on December 21 that it had fired two workers and their supervisor. At the company's invitation, the Virginia state veterinarian Richard Wilkes visited the facility on December 22. He praised Smithfield for its efforts to improve animal welfare and said he saw no signs of abuse. The Humane Society criticized the tour. 2017 DxE investigation A 2017 investigation by animal advocacy group Direct Action Everywhere (DxE) filmed "piles of dead baby pigs rotting in feces while others drank from bloody, mutilated nipples of sows” and found that some pigs were still being housed in gestation crates, despite claims by Smithfield that the practice had ceased. ==Labor relations==

1994–2008 union dispute meets Smithfield workers, Chapel Hill, North Carolina, June 2007. The Smithfield Packing plant in Tar Heel, North Carolina, was the site of an almost 15-year dispute between the company and the United Food and Commercial Workers Union (UFCW), which had tried since 1994 to organize the plant's roughly 5,000 hourly workers. Workers voted against the union in 1994 and 1997, but the National Labor Relations Board (NLRB) alleged that unfair election conduct had occurred and ordered a new election. During the 1997 election the company is alleged to have fired workers who supported the union, stationed police at the plant gates, and threatened plant closures. In 2000, according to Human Rights Watch, Smithfield set up its own security force, with "special police" status under North Carolina law, and in 2003 arrested workers who supported the union. After demonstrations, lockouts, and a shareholder meeting that was disrupted by shareholders supporting the union, the union called for a boycott of Smithfield products. In 2007 Smithfield countered by filing a federal RICO Act lawsuit against the union. According to the report, the speed at which the pigs are killed and processed makes the job inherently dangerous for workers. A Smithfield manager testified in 1998, during an unfair labor practices trial, that at the Tar Heel plant in North Carolina it takes 5–10 minutes to slaughter and complete the process of "disassembly" of an animal, including draining, cleaning, and cleaving. One worker told HRW that the disassembly line moves so fast that there is no time to sharpen the knives, which means harder cuts have to be made, with the resultant injuries to workers. Similar criticism was made by other groups about Smithfield facilities in Poland and Romania. The American Meat Institute, a trade group of which Smithfield is a member, disputed the claims in the report. The United Food and Commercial Workers Union used the report in its appeals to consumers and civil rights groups during its dispute with Smithfield. ==Coronavirus outbreak==

Smithfield closed numerous plants in order to help control the spread of the coronavirus. In mid-April 2020 the Smithfield plant in Sioux Falls, South Dakota became a "hotspot" for the COVID-19 pandemic. 300 of the plant's 3,700 employees tested positive. On April 12 the company announced the indefinite closure of the plant, which processes 4 to 5 percent of the pork products in the United States. Smithfield has stated that plant closures could cause a meat shortage. By April 14, 438 workers in Smithfield's Sioux Falls plant were confirmed to be infected with the coronavirus, with Sullivan stating, "We have to operate these processing plants even when we have COVID." On April 15, the company announced the closure of a plant in Cudahy, Wisconsin that makes bacon and sausage, and a plant in Martin City, Missouri that makes hams. Both plants were dependent on the Sioux Falls slaughterhouse. Employees in both facilities had tested positive for coronavirus, and by April 15, 28 workers at the plant in Cudahy had tested positive. By April 17, the Sioux Falls outbreak had grown to 777 cases, of whom 634 were Smithfield employees and 143 were other people who got infected after contact with a Smithfield employee. In 2020, Smithfield was cited by OSHA for violating workplace safety rules relevant to the pandemic. Smithfield says OSHA's accusations are without merit and is disputing the citation. By September 11, 2020, the Sioux Falls plant was tied to nearly 1,300 worker infections and four worker deaths. On December 23, 2020, animal rights activist Matt Johnson of Direct Action Everywhere was interviewed on Fox Business posing as the CEO Smithfield Foods Dennis Organ and made claims that the factories were petri dishes for the coronavirus. In the interview, he said the meat industry could be "effectively bringing on the next pandemic, with CDC data showing that three of four infectious diseases come from animals and the conditions inside of our farms can sometimes be petri dishes for new diseases". Fox Business later had to issue an acknowledgement and retraction of the interview with host Maria Bartiromo, admitting they "were punked." ==Medical supplies==

Smithfield is a supplier of heparin, which is extracted from pigs' intestines and used as a blood thinner, to the pharmaceutical industry. In 2017 the company opened a bioscience unit and joined a tissue engineering group funded by the United States Department of Defense to the tune of $80 million. According to Reuters, the group included Abbott Laboratories, Medtronic and United Therapeutics. ==Marketing==

Sports sponsorships In 2012, Smithfield announced a 15-race sponsorship with Richard Petty Motorsports (RPM) and driver Aric Almirola driving the No. 43 Ford Fusion in the NASCAR Sprint Cup Series. The sponsorship was increased to 30 races beginning in 2014. Smithfield rotates its brands on the car, featuring Smithfield, Eckrich, Farmland, Gwaltney, and Nathan's Famous. Smithfield and RPM parted ways in September 2017, allowing Smithfield to sponsor Stewart–Haas Racing in 2018. As of 2023, Smithfield continues to sponsor Almirola in the NASCAR Cup Series with Stewart–Haas Racing. Almirola, who was set to retire from racing competition at the conclusion of the 2022 season, was coaxed by Smithfield to continue with his racing career and their partnership for 2023 and beyond in a multi-year agreement with the company. ==Meat substitutes==

With a launch in 2019 Smithfield began marketing meat substitutes similar to those sold by Impossible Foods. Smithfield sells these products under the Pure Farmland brand. ==Notes==