Smithfield eyeing US listing amid challenging industry conditions

Smithfield Foods was acquired by a leading Chinese MEAT producer in 2013, resulting in the company being delisted from the New York Stock Exchange. Following the acquisition, the combined company became the world's largest pork producer and went public in Hong Kong in 2014. However, WH Group shares have struggled and are currently trading near record lows, primarily due to the 2018 African swine fever outbreak in Hong Kong, which significantly impacted the pig herd . Following the outbreak, the US pork industry saw an increase in exports, but these exports have declined in recent years as CHINA has rebuilt its hog herd, leading to a pork glut in the US. High livestock feed prices due to global events have added to the industry's woes.

Smithfield's potential return to the U.S. stock market comes amid concerns in Washington about China's ownership of key components of the U.S. food supply chain. Smithfield CEO Shane Smith defended the company's Chinese ownership, saying it had helped boost sales.

Notably, while Smithfield's listing discussions continue, other major meat companies, such as Brazil'sJBS is also considering a US listing amid challenging conditions in the meat industry.