WALLACE and SMITHFIELD, Va. — Smithfield Foods, the world’s largest pork producer, has signed an agreement with Wallace-based agribusiness leader Murphy Family Ventures. According to a statement, the agreement will establish a Murphy-owned farming company with the capacity to produce nearly 3.2 million hogs annually for Smithfield’s fresh pork operations.
The new enterprise, which will be majority-owned by the Murphy family, will assume ownership of 150,000 female sows — and the market hogs they produce — currently owned by Smithfield. Smithfield will provide production services, including supplying feed and transportation services, the statement said.
“Smithfield has evolved over the last 10 years into a more streamlined consumer packaged goods company focused on value-added fresh pork and packaged meats delivered from a portfolio of popular brands recognized for quality and taste,” said Shane Smith, president and CEO of Smithfield Foods.
Smithfield announced last year that it had plans to end contracts with 26 farms in Utah, permanently close 35 farm sites in Missouri, and close one plant in North Carolina. The Virginia-based firm also announced the separation of its European operations.
“The Murphy family has enjoyed the past 24 years as a contract growing partner with Smithfield and we look forward to restoring our heritage as an independent producer,” Dell Murphy, president and CEO of Murphy Family Ventures, said in a statement.
“This agreement represents a generational transfer of independently owned swine production capabilities in North Carolina.”
Murphy Family Ventures began in 1962 as a small farm in Rose Hill. MFV opened as a management operation in 2004 and provides a variety of support services owned by the Murphy family and others. Since its inception, the organization has expanded to provide those services to a diverse group well beyond its heritage of agriculture, including agribusiness, land and nutrient management, boat building, hospitality and gold maintenance.
Murphy Family Ventures and Smithfield expect to close the transaction by the end of the year.
