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Ag News

Smithfield Selling Paylean-Free Pork to China

Published Thursday, August 30, 2007 at 05:26 AM

Smithfield Foods has agreed to sell 60-million pounds of Paylean-Free pork to China. The company controls their own swine production so all they have to do is stop feeding Paylean. Three weeks later they will have Paylean-Free pork.

60-million pounds of U.S. pork would be equivalent to abut 300-thousand hogs being exported. That pencils out to about 15 percent of the weekly U.S. kill. Every week the Chinese slaughter about 10- million hogs.

China has a pork shortage. Some observers believe Chinese hog production could have declined 20 percent from a year ago. Hog prices have about doubled. The company says there will be further sale opportunities in the coming months.