US pork producer Smithfield Foods has said that low hog prices in the third quarter would mean fewer hogs and higher prices in the future, helping to boost the company’s earnings.
In January, the company warned that results for the third quarter to 26 January, would fall well below analysts’ estimates due to low hog prices and a glut of meat on the market.
“We do expect the fourth quarter to improve rather dramatically,” Joseph Luter, Smithfield’s chairman, was quoted as saying by Reuters.
Luter said the low hog prices would force smaller, less-efficient producers out of business, leading to a decrease in hog numbers. Fewer hogs should lift meat prices and help Smithfield results in future, he said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData