Smithfield Foods Expands CHEP Program; Sustainability, Productivity Gains Cited

Smithfield Foods, Inc. (NYSE: SFD), the world's largest hog producer and pork processor, today announced 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. "As a company that has grown both organically and through acquisition during the past few decades, Smithfield was using a variety of shipping platforms to deliver our products to market. 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. Equally important, the use of CHEP has a positive impact on the environment and is directly aligned with Smithfield’s sustainability efforts,” said Jack Mandato, Assistant to the President and Director of Strategic Sourcing at Smithfield Foods. 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 off the road). "Smithfield Foods is a clear leader in the area of sustainability, with programs that promote recycling and reuse and dramatically reduce waste. CHEP is committed to helping the company decrease its environmental footprint even further, while improving the efficiencies of its internal and external supply chains,” said Brian Malloy, Senior Vice President, Business Development, CHEP USA. *Source: Franklin Associates, "Solid Waste Analysis And Life Cycle Inventory Of Pallet Systems," 2006 Update Calculations based on third-party Life-Cycle Inventory Analysis results which compared the CHEP USA pallet pooling program against common industry platform options. The LCI Analysis was conducted by Franklin Associates, a leading provider of life-cycle analysis and solid waste management consulting services. About Smithfield Foods With sales of $14 billion, Smithfield Foods is the leading processor and marketer of fresh pork and packaged meats in the United States, as well as the largest producer of hogs. For more information, visit www.smithfieldfoods.com. About CHEP 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.