Smithfield Foods is forecasting a third quarter operating loss between US$70 million and US$90 million for its fresh pork division. According to Food Business Africa, this downturn is being driven by a combination of lower hog prices and reduced pork cutout values, which are putting pressure on industry margins.
Despite the struggles in the fresh meat sector, the company anticipates that its packaged meats business will stay profitable. This comes at a time when consumer spending patterns remain cautious.
