Cargill Inc. has completed a deal to purchase a hog production facility near Dalhart, Texas, from Smithfield Foods’
subsidiary Premium Standard Farms LLC.
The terms of the sale of the 21,500-acre production site was for about $33 million, the companies said in separate releases.
Smithfield, the world’s largest hog producer and pork processor, depopulated the facility in August 2009 as part of its herd reduction plan. Hog producers suffered heavy financial losses from late 2007 through early 2010, and many trimmed their breeding herds as a result.
“The sale of this hog production facility is a further extension of our strategy to reduce exposure to commodity businesses and shed non-core assets,” said Larry Pope, Smithfield Foods president and chief executive officer, in a press release.
Cargill’s pork division based in Wichita, KS.-based will repopulate the site with female breeding swine known as sows and make other investments to improve and expand the existing facility. The first group of hogs produced at the Texas facility is expected to be available for slaughter in 2012. The animals will be shipped to Cargill’s two pork plants located in Iowa and Illinois.
View more information: https://www.marketwatch.com/story/cargill-buys-smithfield-texas-hog-farm-2011-04-27