Company turns to Brazil for cornCosts in the United States are beginning to increase drastically for feed grains, which is having a detrimental outcome on the livestock and meat industry. This spike in prices can be attributed in large part to a severe drought affecting the Midwest, and has prompted supply chain management decisions regarding alternative sourcing options.

Smithfield Foods Inc., one of the world's largest pork producers, recently announced that it will begin importing corn from Brazil, which is a reflection of the rising costs in the United States, according to the Wall Street Journal.

The company will use the corn in its hog-raising operations, a Smithfield spokeswoman recently confirmed after the Financial Times reported that companies including Smithfield had arranged to have Brazilian corn shipped to the East Coast, the WSJ reported.

"There's never been this big of a difference in price," said Paulo Molinari, a consultant at Brazil's Safras & Mercado, according to the Journal. "Brazilian corn is almost always at the same level as in the Gulf of Mexico, if not higher."
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