A Message From Larry Pope---Fall/Winter 2010 Edition

Dear Smithfield Foods Employees:

This is a new era for Smithfield. Over the past several years, we have embarked on a journey to fundamentally change the business. Today, Smithfield is evolving into a Consumer Packaged Goods company. Our restructured Pork Group has a competitive cost structure that is driving profitability. In addition, our sales & marketing efforts are more structured and coordinated across all trade channels and focused on a consolidated brand portfolio. We have embarked on a Hog Production Cost Savings Initiative to deliver a competitive cost structure in all of our operating segments.

The first half of fiscal 2011 has been terrific for Smithfield. After two years of losses and an extremely difficult business environment, I am extremely pleased that Smithfield reported record earnings for the first half of fiscal 2011 in December. This organization is delivering strong results and I am extremely proud of our management team and all of our employees. Not only did we report a sharp turnaround, but the outlook for the remainder of this fiscal year is very favorable as well.

Here at Smithfield, we also understand that our success as a business hinges on our ability to demonstrate that we are operating appropriately and responsibly, in areas ranging from our impacts on the environment to how we treat our animals. Customers and investors are increasingly interested in these issues, and we need to make continual improvement, so that we can maintain our status as a leader in our industry.

In the past, Smithfield has not operated as a closely coordinated organization. Today Smithfield is acting as a unified $11 billion consumer packaged meats company, which is an important part of our strategy in this New Era of Smithfield. I am more optimistic than I have been in a very long time.

Sincerely,

C. Larry Pope

President and Chief Executive Officer

Smithfield Foods, Inc.

February 11, 2011