Premium Standard Farms

Infobox_Company
company_name = Smithfield Foods, Inc.
company_
company_type = Public (NYSE|SFD)
company_slogan =
foundation = 1936
location_city = Smithfield, Virginia
location_country = USA
location = United States, France, Poland, Romania, United Kingdom; joint ventures in Brazil, Mexico, Spain, China
key_people = Joseph W. Luter, III (Chairman), C. Larry Pope (CEO)
num_employees = 51,000
industry = Food
products = Meat
revenue = $11 Billion USD
net_income =
homepage = [http://www.smithfieldfoods.com/] Infobox_Company
company_name = Premium Standard Farms, Inc
company_
company_type = Public (NYSE|SFD)
foundation = 1988
homepage = [http://www.psfarms.com Premium Standard Farms, Inc]

Premium Standard Farms, Inc (PSF) is a subsidiary of Smithfield Foods. PSF was founded in 1988 with the aim of creating a standardized method to produce premium pork. To accomplish this goal, the company decided to pursue full vertical integration-–a first for pork producers in the United States. Premium Standard Farms was the second largest pork producer and the sixth largest processor in the United States until acquired by Smithfield Foods in 2007.

Production

The livestock production segment of Premium Standard Farms involves operations in Missouri and Texas, located on approximately 100,000 acres (400 km²). Its herd size of 221,000 sows can produce about 4.5 million pigs per year; the second largest producer of porcine livestock in the United StatesDubious|date=March 2008.

The North Carolina farms were shifted from PSF to Murphy-Brown after the 2007 Smithfield acquisition.

Missouri production operations

Based in Princeton, the Missouri production operations employ about 1,250 people across northern Missouri. The company has 63 sow farms and nine grow/finish farms that span Mercer, Putnam, Sullivan, Daviess and Gentry counties. Additionally, local farmers operate finishing farms under contract with PSF. The operations in Missouri account for the bulk of the company’s herd with about 108,000 sows in production.

Texas production operations

Based in Dalhart, the Texas production operations employ about 300 people in the extreme northwest region of Texas. A sow herd of about 33,000 are produced in Dallam and Hartley counties. Production takes place on a 40,000 acre (160 km²) farm name High Plains Ranch. Additionally, the company purchased the 14,500 acre (59 km²) Perico Farm from National Hog Farms in 1994.

Processing

Prior to May 2007, Premium Standard Farms consisted of two processing facilities - one in Milan, Missouri, and the other in Clinton, North Carolina. Both facilities utilize similar methodologies and process over 4.6 million hogs per year. Smithfield transferred both facilities to other subsidiaries after the acquisition.

The Missouri plant was built in September 1994 and was the first facility in the United States to use a CO2 anesthetizing system. More than 950 employees in this 300,000 square foot (28,000 m²) facility process over 7,000 pigs per day Fact|date=September 2007. The Milan plant produces fresh and frozen pork products for domestic retailers, further processors, food service providers and export customers to more than 20 countries. After the Smithfield acquisition, the Missouri plant became a member of Farmland Foods.

The North Carolina plant was purchased by PSF (and parent company Contigroup) from The Lundy Packing Group in August 2000. After re-tooling, the facility operates with approximately 1,200 people and processes over 9,000 pigs per day. This 800,000 square foot (74,000 m²) facility produces fresh and frozen pork products to domestic and export customers. Additionally, the Clinton plant specializes in producing further processed pork and other ready-to-eat products such as ham and bacon products. After the Smithfield acquisition, the North Carolina plant became a member of Smithfield Packing.

Brands

Prior to 2007, brands include Premium Farms, Fresh & Tender, Fresh & Natural, and Premium 97 Heart Healthy. Between 5 and 10% of PSF’s pork product was exported to over 20 countries including Japan, China, Singapore, Mexico, Malaysia, the Philippines and Taiwan. Premium Standard Farms currently supports the Smithfield Foods brands.

mithfield Foods acquires Premium Standard Farms

On September 18, 2006, Smithfield Foods announced that it would acquire Premium Standard Farms in a cash and stock deal that would total $810 million including the assumption of about $117 million in debt. The sale of PSF’s open stock still requires approval from the SEC as well as shareholder approval. Smithfield hopes to close the deal by the end of the first quarter in calendar year 2007.

ContiGroup Companies Inc supported the cash and stock buyout and voted its 38.8 percent stake in PSF in favor of the deal.

May 2007, Smithfield completed the acquisition of Premium Standard Farms, converting shares into Smithfield stock at a rate of 0.678 Smithfield shares plus $1.25 in cash per PSF share [cite web
url=http://www.food-business-review.com/article_news.asp?guid=94CEAD81-54F7-44A5-907A-BF25F0621BA6&z=
title=Smithfield completes Premium Standard Farms acquisition
accessdate=2007-08-14
author=Leah Vyse] .

History

* 1988 - Premium Standard Farms founded
* 1989 December - First litter of seven gilts and four barrows born on Wiles farm
* 1994 June - PSF acquired National Hog Farms of Texas
* 1994 September - Construction of first processing plant in Milan, Missouri complete
* 1994 September - 80,000 sow units completed in Missouri
* 1996 - Company emerged from restructuring after market volatility
* 1998 May - PSF merged with ContiGroup’s north Missouri swine operation which added 25,000 sows to the company’s herd.
* 1998 December - PSF is the first pork producer to earn Process Verified accreditation from the United States Department of Agriculture
* 2000 August - PSF purchases the Lundy Packing Company and ContiGroup’s Carolina Farms
* 2003 April – PSF and Johnsonville Sausage form Oldham LLC, a joint venture to produce sausage products
* 2005 August - Initial public offering, NASDAQ: PORK
* 2007 May - Smithfield completes Premium Standard Farms acquisition

ee also

* ContiGroup Companies
* Smithfield Foods

References

* [http://www.psfarms.com Premium Standard Farms, Inc website]
* [http://www.contigroup.com ContiGroup Companies, Inc website]
* Smithfield merger
** [http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B50105880%2D095D%2D478F%2DA684%2D39BF1EA4E1E0%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo MarketWatch article]