INDIAN WELLS, CALIF. While assessing the state of the industry at the National
Meat Association’s annual convention, Smithfield Foods Inc. CEO, Larry Pope,
admitted it’s difficult to summarize in one fell swoop. When taking into account
the state of the beef, pork and the poultry industries independent of each
other, one broad brush stroke doesn’t really tell the story.
Each species now has its own set of circumstances and factors and therefore the
status of each is quite different, he said. Additionally, consideration must be
given to the state of the production of livestock as well as the processing
business. All of these segments have very different dynamics impacting their
current status.
Addressing the state of the meat-processing industry, Mr. Pope said the past
year has likely been positive for many companies.
The reason it’s been good is partially because the livestock business has been
so bad, he added. You’ve probably made some pretty darn good margins, he said
to his processing counterparts in attendance about the past year’s performance.
I’m not sure that’s going to continue, he added, because the losses endured by
livestock producers cannot continue much longer.
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