SMITHFIELD, VA. – Smithfield Foods announced on Dec. 2 that it plans to re-establish the Murphy Family Ventures as an independent farming business.

The Murphy family, based in Wallace, NC, will take majority ownership of 150,000 sows and the market hogs currently produced that are owned by Smithfield. The capacity of the farming business would be approximately 3.2 million hogs annually for Smithfield’s fresh pork operations.

“Smithfield has evolved over the last 10 years into a more streamlined consumer packaged goods company focused on value-added fresh pork and packaged meats delivered from a portfolio of popular brands recognized for quality and taste,” said Shane Smith, president and chief executive officer of Smithfield Foods. “With this agreement, we continue this transformation while ensuring a supply of hogs from a family farming operation with a long history in, and a strong commitment to, best practices in American pork production.” 

The Murphy Family farming business, started by Wendell Murphy in 1962, expects to close the transaction between the two sides by the end of 2024. 

“The Murphy family has enjoyed the past 24 years as a contract growing partner with Smithfield and we look forward to restoring our heritage as an independent producer,” said Dell Murphy, president and CEO of Murphy Family Ventures. “This agreement represents a generational transfer of independently owned swine production capabilities in North Carolina.” 

Smithfield’s parent company, WH Group Ltd., recently stated that it wants to list up to 20% of Smithfield shares on the New York Stock Exchange or NASDAQ. The first proposals of a possible spin-off came in July 2024.

Last September, Smithfield began to close 35 hog farms in Missouri.