New joint entity to significantly boost pork production
Smithfield has recently announced a strategic collaboration with VisionAg, LLC, an affiliate of the renowned HD3 Farms, to form a new company aimed at bolstering its pork production.
The newly formed entity, named VisionAg Hog Production, LLC, marks a significant step in Smithfield's strategy to enhance its fresh pork operations across the United States.
Under the partnership, VisionAg Hog Production will acquire 28,000 sows that were previously under Smithfield’s management, along with their market hogs.
This move is designed to streamline operations and increase annual pork production capacity to 600,000 hogs.
Smithfield will contribute by providing essential services such as feed, transportation, and overall hog production support, ensuring the joint venture operates efficiently and at full capacity.
This collaboration is built on a long-standing relationship between Smithfield and HD3 Farms, which has spanned over two decades, where HD3 Farms has grown into one of the largest wean-to-finish and finishing growers in the U.S.
Their expertise in managing large-scale hog operations makes them an ideal partner for Smithfield in this ambitious project.
The anticipated closure of this transaction by early 2025 sets a definitive timeline for both companies to align their resources and prepare for a seamless transition.
This venture is expected to not only increase Smithfield's pork production capabilities but also reinforce its commitment to meeting the rising demand for pork products in a responsible and sustainable manner.
As Smithfield and VisionAg embark on this new journey, the focus remains on innovation, sustainability, and enhancing the supply chain of high-quality pork products.