By Patrick Thomas
Prices for bacon, ham and other deli meats are rising after disease outbreaks earlier in the year crimped hog production in the Midwest, executives at Smithfield Foods said.
Smithfield, the largest pork processor in the U.S., says an outbreak of the PRRS virus has resulted in shortages of certain cuts like pork bellies used to make consumer favorites such as bacon.
Strong export demand is also supporting higher prices for products like ham. Mexico is buying more U.S. pork to make up for a shortage of turkey, due to rising bird flu cases. And despite the U.S.-China trade war, Smithfield CEO Shane Smith said in an interview that China has continued to buy its products.
Prices for Smithfield's packaged meat products, such as sausages and hot dogs, were up 9% for the three-month period that ended Sept. 28. The company's sales volumes were flat during the period despite the sticker shock facing consumers, Smith said.
The company's shares were up about 6% Tuesday.
Pork processors have struggled to find steady profits for years, due to a glut of supply and stagnant demand. In the latest quarter Smithfield's adjusted profit increased from the same period last year.
"I think the industry in my opinion feels pretty balanced right now," Smith said.
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(END) Dow Jones Newswires
October 28, 2025 12:56 ET (16:56 GMT)
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