Smithfield Foods announced a number of senior management changes in April. The company named George H. Richter president and chief operating officer of its pork group, a new position, effective April 28. The presidents of Smithfield Foods' five pork processing companies will report to him. Smithfield's domestic pork sales this year will exceed $9 billion.

A 34-year veteran of the pork industry, Mr. Richter has spent his entire career with Farmland. He has served as president of Farmland Foods, Inc. since Smithfield acquired the company in October 2003. Previously, he was president of the pork division of Farmland Industries and a member of the senior management council.

In addition, Joseph W. Luter IV, currently president of Smithfield Packing Company, will become an executive vice president of Smithfield Foods and will concentrate on sales and marketing. Mr. Luter has served in several positions within Smithfield Foods since 1993.

James C. Sbarro will become president of Farmland. Mr. Sbarro has 25 years of experience in the food industry and has been senior vice president of sales, marketing, research and development at Farmland since 1999.

Tim Schellpeper, senior vice president of operations at Farmland, will become president of Smithfield Packing Company. A 21-year veteran in the pork industry, Mr. Schellpeper has been with Farmland for 17 years.

"I am very pleased with these changes, for they strengthen our overall management team," said C. Larry Pope, Smithfield Foods president and chief executive officer. "These managers will help in the coordination of the pork subsidiaries to better serve our continually-growing retail and foodservice customers."

Smithfield Foods announced in May that it has extended use of the CHEP pooling program to all shipments to take advantage of environmental and efficiency savings. The company is now using CHEP pallets to transport product from more than 40 Smithfield Specialty Foods, John Morrell & Co., Farmland Foods, Smithfield Beef and Butterball facilities around the country to supermarkets, wholesale distributors, club stores and foodservice distributors across the United States and Canada.

Smithfield Foods, which has been using the CHEP system in parts of the company since 2001, had previously used limited use, whitewood pallets to ship product to customers. The company determined that these pallets produced high supply chain costs, poor quality platforms and needlessly added trashed wood to the waste stream. Customers were also requesting a switch to a pallet they did not have to maintain.

"After reviewing our options and consulting with trading partners, we have moved our operations entirely to CHEP because they provide us with higher quality pallets and improved supply chain efficiencies," said Jack Mandato, Assistant to the President and Director of Strategic Sourcing at Smithfield Foods. "Equally important, the use of CHEP has a positive impact on the environment and is directly aligned with Smithfield's sustainability efforts."

The CHEP Pallet Pooling System generates significantly less solid waste, uses less energy and creates fewer greenhouse gas emissions than other common shipping options, according to a recent Life-Cycle Inventory (LCI) Analysis conducted by Franklin Associates, a division of Eastern Research Group.

Based on LCI findings, as a result of using the CHEP program as opposed to limited use, whitewood pallets, Smithfield Foods is helping to save:

• 20.7 Million pounds of solid waste from entering landfills and waste streams (enough waste to fill 925 dump trucks),
• 64.3 Billion BTUs of energy (enough electricity to power nearly 1,700 homes for a year),
• And 11 Million pounds of greenhouse gas emissions from entering the atmosphere (the annual CO2 emissions equivalent of taking 960 cars of the road).

"Smithfield Foods is a clear leader in the area of sustainability, with programs that promote recycling and reuse and dramatically reduce waste," said Brian Malloy, Senior Vice President, Business Development, CHEP USA. "CHEP is committed to helping the company decrease its environmental footprint even further, while improving the efficiencies of its internal and external supply chains."

CHEP is the global leader in pallet and container pooling services serving many of the world's largest companies. The company has more than 7,700 employees and operates in 45 countries. Combining superior technology and an asset base of more than 285 million pallets and containers, CHEP offers its customers exceptional value, a platform that enables reduction in customer product damage, and an environmentally sustainable logistical solution. Supply chains served include consumer goods, produce, beverage, and the automotive industry. With global partners that include Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World's Most Important Products. Everyday. For more information about CHEP, please visit: www.chep.com.