WH Group to leverage Smithfield supply in 2015WH Group to leverage Smithfield supply in 2015
April 3, 2015
WH Group, the world's largest hog producer, produced 17.7 million hogs in 2014 — a 223.9% increase over the previous year.
The surge in production was due to the company's 2013 acquisition of Smithfield, and WH Group said plans are in the works to continue leveraging that increased supply.
The company's hog production volume in China was 311,000 head in 2014, but Smithfield contributed 17.4 million more hogs to WH Group's hog production volume in 2014, representing a year-over-year growth of 237.4%.
Additionally, the company said turnover from its hog production operations increased from $191 million in 2013 to $587 million in 2014 as a result of the full-year effect of the Smithfield contribution and high hog prices in the U.S. Turnover from hog production operations in China reached $7 million, while the other $580 million came from Smithfield, representing a year-over-year increase of 231.4%.
"Since the Smithfield acquisition in 2013, WH Group fully leveraged the synergies between its businesses in China and the United States," the company said. "To capture the huge Chinese consumer demand for high-quality meat products, the company's first factory for the production of Smithfield-branded products will be completed soon and is expected to commence operations in 2015."
The new factory will produce American-style, low-temperature meat products, including bacon, ham, hamburgers, sausages, etc.
WH Group said it will also continue to adopt a flexible strategy to identify the optimal timing of trades to increase Smithfield's fresh pork exports to China in order to expand Smithfield's business in the Chinese market.
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