Smithfield Foods, the largest pork producer in the United States, has recently filed a proposal to return to the public market. The proposal involves offering shares on the Nasdaq Global Select Market, with the company trading common stock under the ticker symbol “SFD”. The timing, number of shares, and price range for the proposed offering have yet to be determined.
This move comes at a time of pricing pressures in the pork industry and increased scrutiny over U.S. companies’ ties to China. By returning to the public market, owner WH Group, the world’s largest pork producer, can focus on its Chinese operations while providing Smithfield with the flexibility to raise capital in a challenging economic environment.
Smithfield plans to use the proceeds from the listing to expand its packaged meats capacity, invest in infrastructure and automation, and cut operating costs by offloading a significant portion of its hog supply. The company has been facing declining margins due to falling pork prices, rising livestock costs, and a stronger U.S. dollar, which have impacted exports.
Questions have also been raised about Smithfield’s relationship with China, as WH Group’s acquisition of the company in 2013 made it one of the largest Chinese landholders of U.S. farmland. With trade tensions between the U.S. and China escalating, lawmakers are considering restrictions on farmland access for entities associated with the country.
By spinning off its U.S. and Mexico businesses, Smithfield aims to enhance its market reputation and credibility by providing more transparency to investors in the United States. The company has already carved out its European operations in preparation for the proposed listing.
Smithfield employs approximately 34,000 people in the U.S. and 2,500 in Mexico, operating 400 company-owned farms and collaborating with over 1,900 contract farms. The company reported gross profits of $1.4 billion for the nine months ending Sept. 29, compared to $604 million in the same period in 2023. The move to return to the public market signals a strategic shift for Smithfield as it navigates challenges in the pork industry and addresses concerns over its ties to China.
