View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 14, 2021

Meat giant Smithfield Foods to reconfigure East Coast US operations

As a result, its hometown facility in the namesake town of Smithfield, Virginia, will no longer be used to slaughter hogs.

US meat major Smithfield Foods is to reconfigure its East Coast operations as a result of an internal review.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

As a consequence, its hometown facility in the namesake town of Smithfield, Virginia, will no longer be used to slaughter hogs but will instead be set up to manufacture more packaged bacon, ham and other pork products.

The slaughtering function will be re-allocated to some of its 47 other US facilities. Work on the reconfiguration is already under way.

The company, owned by China’s WH Group, said it is spending US$5m upgrading the plant in Smithfield where the business was founded 85 years ago.

In a statement sent to Just Food, Keira Lombardo, Smithfield’s chief administrative officer, said: “The planned retooling is the result of a months-long internal review of the company’s East Coast operations, which include a significant presence in Virginia. At the conclusion of the internal review, it was determined that the company’s harvest volume in Smithfield would be shifted to other existing US facilities.

“The company does not anticipate any lay-offs as a result of the retooling. All impacted hourly and the vast majority of salaried employees will be reassigned to other positions within the plant. A small number of impacted salaried employees will have opportunities available to them across Smithfield’s network of facilities.”

Smithfield said the meat processing facility will continue to provide approximately 1,900 jobs. In total, the company has 2,500 employees in Smithfield with the other 600 working in its innovation centre and corporate headquarters.

Attempting to explain Smithfield’ decision to shift its slaughtering operation away from Virginia, news agency Reuters quoted an agriculture economist as saying there are now fewer hogs along the eastern seaboard after farm closures.

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food