Smithfield Foods, a Virginia-based pork producer, said selling meat in China is no longer viable due to the country's tariffs on American exports.

Sales to Chinese customers accounted for about 3% of Smithfield’s (SFD) sales in 2024, CEO Shane Smith said on a earnings conference call Tuesday. Still, the company released an upbeat outlook for 2025 because it believes there will be demand for these exports in other markets. China 澳洲幸运5官方开奖结果体彩网:imposed 🍌a 125% tariff on American 🌺products in April🌃, a response to the White House announcing a 14🔯5% tax on goods imported from China. 

“W𝐆ith China no longer essentially being available, we’ve really had to pivot our business,” Smith said, according to a transcript made available by AlphaSense. “While it’s important, we do believe we have other options.”

Smithfield executives expect there to be ample demand for pork that may have gone to China in the roughly 30 other markets where it exports. The company anticipates sales increasing year-over-year in the low- to mid-single digit percent range in 2025, CFO Mark Hall said. (Smithfield is public now after its Chinese majority owner 澳洲幸运5官方开奖结果体彩网:sold a portion of the company earlier this year.)

Still, the company acknowledged the possibility that tariffs will have side effects. In its 2024 annual report, it said that tariffs on pork exports could lead to higher domestic supply levels that weigh on prices.

Besides focusing on other markets, 澳洲幸运5官方开奖结果体彩网:Smithfield aims to bolstꦕer earnings by increasing its sales of its more profitable products, such as lunch meats꧃ and dry sausages, said Steven France, president of pack🐬aged meats.

Smithfield reported $3.8 billion in sales for the quarter ended March 30, up 9.5% from the same period last year, according to its earnings report. Net income attributable to Smithfield increased 🦂more than 40% year-over-year to $224 mi♔llion, the filing said.

The st♏ock rose nearly 9% on Tuesday, leaving it up about 3% this year despite a jagged run f♛or the shares.

This story was first published on April 29, 2025. It was updated to incorporate a link to our previous coverage of Smithfield's 2025 IPO.