SMITHFIELD, VA. — Smithfield Foods Inc. announced that it made a deal with Vision Ag LLC, an affiliate of HD3 Farms, a prominent US wean-to-finish and finishing grower that would supply hogs to the company as an independent pork producer.

The agreement between the two sides formed a new company called VisionAg Hog Production LLC, with Smithfield holding a minority interest. 

The new entity would assume ownership of 28,000 sows that are currently owned by Smithfield as well as market hogs that are produced. 

The capacity listed in the announcement would be 600,000 hogs annually for Smithfield’s fresh pork operations.

Smithfield said it will supply the feed, transportation and other production services to VisionAg Hog Production. The transaction is expected to close in early 2025. No other financial terms were made available. 

HD3 Farms has been a contract growing partner for Smithfield for more than 20 years and features 250,00 wean-to-finish spaces on farms in Bladen, Columbus, Duplin, Hoke, Pender, Robeson, Scotland and Sampson Counties in North Carolina. 

Earlier in December, Smithfield made a reestablishment deal with Murphy Family Ventures for that group to take majority ownership in a sow operation. 

Smithfield’s Hong Kong-based parent company, WH Group Ltd., also approved a measure to list Smithfield shares on the New York Stock Exchange or the Nasdaq Stock Market. The first proposals of a possible spin-off came in July 2024.