Greenhouse Gas Emissions

• Farms emit methane (CH₄) and nitrous oxide (N₂O) from animal manure, treatment systems, and crop production, as well as CO₂ from energy use.
• Our transportation fleet emits CO₂.
• Processing plants emit CO₂ and N₂O as a result of energy use, and methane as a wastewater treatment byproduct.

As an agriculture-based company, changes to the climate could affect key inputs to our business through shifts in temperatures, water availability, precipitation, and other variables. The availability and price of corn and other feed crops, for example, could be affected. The regulation or taxation of carbon emissions could also influence the prices of commodities, energy, and other inputs to our business. Some of our stakeholders have shown interest in the related issues of food miles and the carbon footprint of our products.

We are working to better understand the significance of our industry’s contribution and the potential impacts of climate change on our business. For example, we participated in a project with the Pork Board to quantify the carbon footprint of a 4-ounce serving of pork.

While climate change poses potential risks, it also offers opportunities for Smithfield, through the development of renewable energy sources. These include, but are not limited to, those derived from manure (biogas) and wind farms, and participation in future carbon markets. Through our Energy Technology Review Committee (formerly called our Bioenergy Task Force), we research technologies that could harness the renewable energy potential of our operations. We actively work with technology providers, utilities, and government agencies to help guide us toward the use of pioneering technologies at our farms and processing facilities in a sustainable and cost-effective manner. For instance, we leased a section of Murphy-Brown property in Utah to a wind energy developer. Since December 2009, wind turbines have been generating 119 megawatts of electricity—enough to power approximately 3,400 homes in the area.

Reducing GHG Emissions¹

We held our normalized greenhouse gas (GHG) emissions steady over the past four years, largely through our efforts to use energy efficiently. In 2011, our normalized GHG emissions were 5 percent below 2008 levels due to the type of fuels utilized. Absolute GHG emissions rose slightly over the same period, due to improved reporting and increased production of ready-to-eat products. The following chart illustrates our GHG emissions efficiency.

Absolute Greenhouse Gas Emissions from Processing Operations

Company plants emitted a total of 1.3 million metric tons of GHGs, up 2 percent from 2008. Overall GHG emissions at Smithfield have fluctuated over the past five years, due to organizational changes, increased production levels, fuel choices, and improved reporting. These four factors have impacted the absolute emissions of carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) we report. Unlike our normalized sustainability metrics, which are reported per 100 pounds of production (cwt), the following data represent overall emissions, and do not account for Smithfield’s increased production levels, changes in product type, or improved GHG emissions management.

The divestiture of our emissions-intensive beef group in 2008 significantly reduced emissions in 2009. The switch at some plants from fuel oil to natural gas, a cost-effective fuel with lower GHG emissions, also contributed to the decrease.

Between 2009 and 2011, GHG emissions rose as output increased, and as our product line shifted toward ready-to-eat products, which require more energy to make. Absolute CH₄ and N₂O emissions fell in 2011, and CO₂ emissions didn’t grow as quickly as energy use, thanks to our recent energy efficiency efforts and use of natural gas.

Total Direct & Indirect CO₂ Emissions (Metric Tons)

Carbon dioxide (CO₂) emissions increased nearly 13 percent over the past five years, due to increased production and more accurate reporting.

Direct Methane (CH₄) Emissions (Metric Tons CO₂e)

Methane emissions rose by nearly 73 percent between 2007 and 2010 but fell in 2011. However, they comprise a small portion of overall GHG emissions.

Direct Nitrous Oxide (N₂O) Emissions (Metric Tons CO₂e)

Nitrous oxide emissions grew by over 39 percent between 2007 and 2010, but remained steady over the past two years.

GHG Emissions from Transportation

Transporting raw materials, livestock, and finished products around the world contributes to the total carbon footprint of our products. We continue working to improve the efficiency of our company-owned trucking fleets.

The data on GHG emissions from company-owned trucks were assembled from Murphy-Brown and Smithfield Packing.² Fuel use reported for Smithfield Packing, which also includes refrigeration units, does not cover all of 2010. The company sold its truck fleet in October 2010. Because all subsidiaries other than Murphy-Brown use contracted trucks, they are not included in this report. Declines in GHG emissions are the result of packaging reduction efforts, improved routing, and other efforts to improve fuel economy and shipping efficiency. Calendar 2007 included the Beef Group; the 2008 reduction was due to the divesture of the Beef Group.