What Smithfield Foods, Inc. told the SEC could break it.

Walmart alone was ~15% of FY2025 consolidated sales and the top ten customers were 42%; an extended loss of Walmart, if not replaced, would materially hurt results.

“Cumulatively, our top ten customers accounted for 42%, 39% and 39% of our consolidated sales in fiscal years 2025, 2024 and 2023.”

Smithfield's exports to China (mainly fresh pork offal) already face 25%–47% tariffs, and China had proposed 140%–172% rates (repeatedly paused); a steep increase could force Smithfield to cut or cease China sales (U.S. exports were 11% of total sales).

“As of December 28, 2025, products we export to China faced tariffs that ranged from 25% to 47%, with most products subject to 47% tariff rates. China previously had proposed imposing tariff rates on our products ranging from 140% to 172%, but implementation of those increased rates have been repeatedly paused.”

Smithfield's margins depend on managing live-hog and feed raw-material cost movements via its hog-production operations, hedging, forward purchasing and passing inflation to customers.

“Our results of operations will continue to depend on our ability to (1) manage raw material cost movements through optimizing our hog production operations, hedging, forward purchasing, strategic sourcing negotiations and passing inflationary cost increases to customers, (2) operate our manufacturing and logistics footprint efficiently and competitively and (3) continue to attract and retain customers and consumers through effective sales and marketing spend.”

About 44% of Smithfield's ~34,500-person workforce is covered by collective bargaining agreements or union membership; labor availability, cost and union relations are critical to its processing operations.

“As of December 28, 2025, we had approximately 32,000 employees in the U.S. and approximately 2,500 in Mexico, with approximately 44% of our total workforce covered by collective bargaining agreements or are members of labor unions.”