A Message from Bo Manly--Spring/Summer 2011 Edition

Dear Smithfield Foods Employees:

"Oh, what a difference a year or two can make." Ain't that the truth!

As we close the books on our fiscal 2011, I can report the best performance in the history of Smithfield Foods..  As you are all aware, this year's performance follows two years of record losses, the only losses in over thirty years.  Oh, what a difference……

On behalf of senior management and the Board of Directors, I want to thank every associate at all of our locations for their tireless efforts to make these results possible.Equally as important, you have contributed greatly to evolving the company into a more competitive organization with a greater focus on packaged meat.    Oh, what a difference……

We continue to work hard to restructure all our business groups more competitive and more focused.  The recent outstanding results in fresh meat demonstrate that all our business segments, production, processing and packaged meat, are now capable of making significant  contribution to the bottom line..  Oh, what a difference……

I was recently rummaging through some old personal stuff, when I ran across an article from 1979, entitled "Luter To the Rescue At Smithfield Foods".  Most people around Smithfield  remember the history Joe III returning to the family business in 1976.  It is humbling to realize he re-took control of a company with sales of $180 million and losing 8 cents on every dollar and had a balance sheet with 20 dollars of debt for every dollar of equity.    Oh, what a difference……

Today, under the leadership of Joe and Larry, you have all built one of the strongest, integrated consumer packaged meats company in the industry.  Our core businesses are all delivering very solid result.   Today, our outlook points to having another outstanding year in FY 2012.  We are finally now able to look outwardly for prudent growth though acquisitions  to compliment strong organic growth in our core businesses.

Oh, what a difference!

Bo Manly

Executive Vice President and Chief Financial Officer

May 19, 2011