Smithfield Partners with HD3 Farms for Innovative Pork Production Initiative

Smithfield and HD3 Farms Collaborate for Pork Production

In a significant step towards enhancing its pork production capabilities, Smithfield Foods has entered into an agreement with VisionAg, LLC, an affiliate of one of the largest hog growers in the U.S., HD3 Farms. This partnership will not only streamline Smithfield's supply chain but also strengthen its market position as a leading provider of fresh pork across the nation.

Overview of the Agreement

The collaboration will establish a new entity named VisionAg Hog Production, LLC, in which Smithfield will maintain a minority interest. As per the deal, VisionAg will take over the ownership of 28,000 sows previously owned by Smithfield, bringing along the market hogs produced by these sows. This ambitious plan aims to achieve a staggering annual production capacity of 600,000 hogs for Smithfield’s fresh pork operations.

Smithfield will continue to support VisionAg Hog Production by supplying essential resources like feed, transportation, and various hog production services, ensuring a smooth operational flow.

A Long-Standing Partnership

It is noteworthy that HD3 Farms has been a trusted contract growing partner for Smithfield for over two decades. The company successfully manages 250,000 wean-to-finish and finishing spaces across several farms located in counties such as Bladen, Columbus, Duplin, Hoke, Pender, Robeson, Scotland, and Sampson in North Carolina. This established infrastructure will play a pivotal role in the newly formed venture’s growth.

Smithfield’s Vision for the Future

Smithfield Foods, recognized as a leader in the packaged meats and fresh pork sectors, is committed to meeting the global demand for quality protein. With its diverse brand portfolio and robust relationships with U.S. farmers and consumers, this partnership further illustrates Smithfield's dedication to innovation and sustainability in the food supply chain.

The agreement between Smithfield and VisionAg is expected to close in early 2025, marking a new chapter in the realm of independent pork production. By fostering this operational collaboration, both entities anticipate not just enhanced production efficiency but also an elevated standard of quality within the pork industry.

Conclusion

As the industry pivots towards more collaborative models, Smithfield Foods’ partnership with HD3 Farms and VisionAg underscores a strategic move towards independent pork production, establishing a new benchmark for sustainability and efficiency in agriculture. This venture is poised to significantly shape the landscape of pork production in the United States, benefitting both companies and consumers alike.

In conclusion, stakeholders and consumers eagerly await the operational successes that this new joint venture is set to bring in the coming years. Smithfield’s commitment to quality and innovation remains unwavering as it embarks on this exciting journey alongside VisionAg and HD3 Farms.