What's Happening Now - Everything we're up to throughout the year.

Animal Care

December 7, 2011

Sow Stall Conversion Process Update

I am very pleased to report that our livestock production subsidiary Murphy-Brown, LLC has made major progress toward the conversion from individual gestation stalls to group housing arrangements for pregnant sows on company farms.

While the conversion slowed during the recent recession due to significant operating losses, at our September 2010 shareholders meeting, Smithfield announced that significant resources had again been committed to the conversion. We also resolved to announce our progress on a regular basis.

We are now confident that by December 31, 2011, we will have completed conversions for 30% of the sows on our farms, which was our target for this year.

Smithfield was the first major producer in our industry (which includes over 60,000 producers) to publicly commit to converting sow housing to group pens and remains the only large producer to do so. We will continue the conversion as planned with the goal of completing conversion for all sows on company farms by the end of 2017, and today we are on course to achieve that goal. While we initially had concerns during the recession about whether we could meet the 2017 goal, we are now back on track and barring unforeseen circumstances beyond our control we are confident that we will achieve our stated goal.

C. Larry Pope

President and Chief Executive Officer

Smithfield Foods, Inc.

Conversion from gestation stalls to group housing at a Smithfield farm in Waverly, VA

Murphy Brown employees at a farm in Waverly, Virginia, work on the conversion of a barn to group pens. Following customer requests, the company made a decision in 2007 to convert all its company-owned sow farms to group housing for pregnant sows - 30% of Smithfield's sows on company-owned farms will be in group housing by the end of 2011.

Construction at a Smithfield farm in Waverly, VA as part of an effort to convert gestation stalls to group housing

Construction continues at a Murphy-Brown farm near Waverly, Virginia, as the company persists with its commitment to convert all of its gestation stalls for pregnant sows to group housing. Smithfield made a decision in 2007, in response to customer requests, to convert all its company-owned sow farms to group housing pens and 30% will be finished by the end of 2011.

Progress being made at Waverly, VA farm as part of Smithfield Foods' transition to group housing pens

Workers at a Murphy Brown farm near Waverly, Virginia work on the company’s conversion from gestation stalls for its pregnant sows to group housing. In 2007 the company made a decision, in response to customer requests, to convert all its company-owned farms to group housing - 30% of Smithfield's sows on company-owned farms will be in group housing by the end of 2011.

Animal Care Committee Meeting

Our animal care committee is comprised of members from across our family of companies with varying areas of expertise related to animal care. They meet quarterly to discuss the care of animals on our farms and at our plants.

Pregnant sows in group housing pens at a Smithfield farm in Utah

Pregnant sows at a Circle Four Farms facility near Milford, Utah, are housed in group pens. Circle Four Farms is a subsidiary of Murphy-Brown, the first hog production company to announce a complete phase-out of gestation stalls for pregnant sows at all company-owned farms.

Farrowing area

Our animal care committee visited the farrowing area of one of our Midwestern farms. This is where sows give birth and raise piglets until they are 23 days old, when they are weaned. The bar you see here helps to ensure that the sow doesn't accidentally injure her piglets by lying down on them.

Group housing pens for sows at a Smithfield farm in Milford, Utah

At a Circle Four Farms facility near Milford, Utah, pregnant sows are housed in group pens. Following customer requests, the company made a decision in 2007 to convert all its company-owned sow farms to group housing for pregnant sows. Circle Four Farms is a subsidiary of Murphy-Brown, the first hog production company to announce a complete phase-out of gestation stalls at all company-owned farms.

"Open Pen" Group Housing

One type of newly-converted gestation housing is called “pen gestation.” In this system, sows are housed in small groups in one communal area. You can see a sow here taking a drink—our sows have access to as much clean water as they choose at all times.

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