Growth in Sales and Profitability
For the quarter ending September 28, 2025, Smithfield’s total sales rose 12.4%, reaching $3.75 billion, compared with the same period last year.
Average sales prices for packaged meats climbed 9.2%, while prices for fresh pork increased 12%, a result of lower U.S. pork production and continued strong demand.
CEO Shane Smith told Reuters:
“It’s really all about consumer behavior and how they respond to pricing pressures. We believe we have the right strategies in place to navigate these conditions.”
Smithfield raised the midpoint of its full-year adjusted operating profit forecast to a range of $1.23 billion to $1.33 billion (previously $1.15–$1.35 billion). The company noted that the forecast includes potential impacts from delays in federal food aid programs caused by temporary government shutdowns.
High Protein Prices
Donovan Owens, president of Smithfield’s Fresh Pork Division, said the pork market is expected to remain strong:
“Given how high beef prices are, we anticipate continued elevated demand for pork.”
Although inflation has made consumers more cautious in their spending, demand for protein remains robust.
U.S. President Donald Trump recently stated that his administration is working to lower beef prices and may allow increased imports from Argentina. Smithfield noted that this could positively impact its Nathan’s Famous hot dog brand, which uses beef trimmings, though the company does not expect it to result in significant price reductions for consumers.
Trade Tensions With China
Smithfield also reported that tariff disputes between the U.S. and China have restricted exports of certain pork by-products to the Chinese market. Smith said the company exported fewer such products in 2025 than in the previous year.
These exports primarily include offal—such as pig stomachs and hearts—which are not typically consumed in the U.S. but are in high demand in China. The company stated that most of these shipments were subject to tariffs of up to 57% during the quarter.
President Trump is expected to meet with Chinese President Xi Jinping later this week to discuss trade issues, including agricultural exports.
PigUA.info based on Reuters materials