----

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|   |   |   |   |   |
|--------|--------|--------|--------|--------|

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

|   |                               |   |                                                   |   |
|--------|------------------------------------|--------|--------------------------------------------------------|--------|
|   | Virginia                           |   | 52-0845861                                             |   |
|   | (State of Incorporation) |   | (I.R.S. Employer Identification Number) |   |

| Large accelerated filer                                x      | Accelerated filer                                     |  ̈ |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Non-accelerated filer                                   ̈ | Smaller reporting company                                                                                                        |  ̈ |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | PAGE                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | PART I—FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                           |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           3  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Consolidated Condensed Statements of Income—Three and Six Months Ended November 1, 2009 and October 26, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           3  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Consolidated Condensed Balance Sheets—November 1, 2009 and May 3, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |           4  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Consolidated Condensed Statements of Cash Flows—Six Months Ended November 1, 2009 and October 26, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |           5  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Notes to Consolidated Condensed Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           6  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |           24 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |           43 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |           43 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | PART II—OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                           |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Legal Proceedings                                                                                                                          |           44 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Risk Factors                                                                                                                               |           44 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |           46 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |           46 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |           47 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other Information                                                                                                                          |           48 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                           |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Exhibits                                                                                                                                   |           48 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| SIGNATURES                                                                                                                                      |           49                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

ITEM 1.                      FINANCIAL STATEMENTS 

|                                                               |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                               |   | November 1,2009    |    |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                                                               |   | (unaudited)        |    |   | (unaudited)      |   |
| Sales                                                              |   | $                  | 2,692.4 |   |             | $      | 3,147.1 |   |   | $ | 5,407.7 |   |   | $ | 6,288.9 |   |
| Cost of sales                                                      |   |               | 2,524.1 |   |             |   | 2,914.5 |   |   |   | 5,140.7 |   |   |   | 5,861.1 |   |
| Gross profit                                                       |   |               | 168.3   |   |             |   | 232.6 |   |   |   | 267.0 |   |   |   | 427.8 |   |
| Selling, general and administrative expenses                       |   |               | 180.0   |   |             |   | 209.7 |   |   |   | 363.8 |   |   |   | 400.3 |   |
| Equity in (income) loss of affiliates                              |   |               | (13.5   | )      |             |   | 21.9 |   |   |   | (23.8 | ) |   |   | 24.0 |   |
| Operating profit (loss)                                            |   |               | 1.8     |   |             |   | 1.0 |   |   |   | (73.0 | ) |   |   | 3.5 |   |
| Interest expense                                                   |   |               | 71.2    |   |             |   | 56.2 |   |   |   | 131.7 |   |   |   | 101.5 |   |
| Loss on debt extinguishment                                        |   |               | 3.6     |   |             |   | - |   |   |   | 11.0 |   |   |   | - |   |
| Loss from continuing operations before income taxes                |   |               | (73.0   | )      |             |   | (55.2 | ) |   |   | (215.7 | ) |   |   | (98.0 | ) |
| Income tax benefit                                                 |   |               | (46.6   | )      |             |   | (22.7 | ) |   |   | (81.6 | ) |   |   | (36.4 | ) |
| Loss from continuing operations                                    |   |               | (26.4   | )      |             |   | (32.5 | ) |   |   | (134.1 | ) |   |   | (61.6 | ) |
| Income from discontinued operations, net of tax of $33.1 and $42.2 |   |               | -       |   |             |   | 34.2 |   |   |   | - |   |   |   | 50.1 |   |
| Net income (loss)                                                  |   | $                  | (26.4   | )      |             | $      | 1.7 |   |   | $ | (134.1 | ) |   | $ | (11.5 | ) |
|                                                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) per basic and diluted share:                         |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                              |   | $                  | (.17    | )      |             | $      | (.23 | ) |   | $ | (.90 | ) |   | $ | (.44 | ) |
| Discontinued operations                                            |   |               | -       |   |             |   | .24 |   |   |   | - |   |   |   | .36 |   |
| Net income (loss)                                                  |   | $                  | (.17    | )      |             | $      | .01 |   |   | $ | (.90 | ) |   | $ | (.08 | ) |
|                                                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average basic and diluted shares                          |   |               | 153.1   |   |             |   | 141.5 |   |   |   | 148.4 |   |   |   | 138.5 |   |

----

SMITHFIELD FOODS, INC. 

|                                                                                                            |   | November 1,2009 |    |   | May 3,2009 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------|---------|--------|------------|--------|
|                                                                                                            |   | (Unaudited)     |    |   |       |   |
| ASSETS                                                                                                          |   |            |    |   |       |   |
| Current assets:                                                                                                 |   |            |    |   |       |   |
| Cash and cash equivalents                                                                                       |   | $               | 464.8   |   |       | $      | 119.0 |   |
| Accounts receivable, net                                                                                        |   |            | 700.6   |   |       |   | 595.2 |   |
| Inventories                                                                                                     |   |            | 1,928.8 |   |       |   | 1,896.1 |   |
| Prepaid expenses and other current assets                                                                       |   |            | 159.9   |   |       |   | 207.3 |   |
| Total current assets                                                                                            |   |            | 3,254.1 |   |       |   | 2,817.6 |   |
|                                                                                                            |   |            |    |   |       |   |   |   |
| Property, plant and equipment, net                                                                              |   |            | 2,388.3 |   |       |   | 2,410.4 |   |
| Goodwill                                                                                                        |   |            | 824.4   |   |       |   | 820.0 |   |
| Investments                                                                                                     |   |            | 655.5   |   |       |   | 601.6 |   |
| Intangible assets, net                                                                                          |   |            | 391.1   |   |       |   | 391.7 |   |
| Other assets                                                                                                    |   |            | 207.4   |   |       |   | 158.9 |   |
| Total assets                                                                                                    |   | $               | 7,720.8 |   |       | $      | 7,200.2 |   |
|                                                                                                            |   |            |    |   |       |   |   |   |
| LIABILITIES AND EQUITY                                                                                          |   |            |    |   |       |   |   |   |
| Current liabilities:                                                                                            |   |            |    |   |       |   |   |   |
| Notes payable                                                                                                   |   | $               | 26.0    |   |       | $      | 17.5 |   |
| Current portion of long-term debt and capital lease obligations                                                 |   |            | 78.9    |   |       |   | 320.8 |   |
| Accounts payable                                                                                                |   |            | 438.1   |   |       |   | 390.2 |   |
| Accrued expenses and other current liabilities                                                                  |   |            | 581.2   |   |       |   | 558.3 |   |
| Total current liabilities                                                                                       |   |            | 1,124.2 |   |       |   | 1,286.8 |   |
|                                                                                                            |   |            |    |   |       |   |   |   |
| Long-term debt and capital lease obligations                                                                    |   |            | 2,922.0 |   |       |   | 2,567.3 |   |
| Other liabilities                                                                                               |   |            | 754.6   |   |       |   | 715.5 |   |
|                                                                                                            |   |            |    |   |       |   |   |   |
| Redeemable noncontrolling interests                                                                             |   |            | 40.0    |   |       |   | 8.3 |   |
|                                                                                                            |   |            |    |   |       |   |   |   |
| Commitments and contingencies                                                                                   |   |            |    |   |       |   |   |   |
|                                                                                                            |   |            |    |   |       |   |   |   |
| Equity:                                                                                                         |   |            |    |   |       |   |   |   |
| Shareholders' equity:                                                                                           |   |            |    |   |       |   |   |   |
| Preferred stock, $1.00 par value, 1,000,000 authorized shares                                                   |   |            | -       |   |       |   | - |   |
| Common stock, $.50 par value, 500,000,000 authorized shares; 165,835,632 and 143,576,842 issued and outstanding |   |            | 82.9    |   |       |   | 71.8 |   |
| Additional paid-in capital                                                                                      |   |            | 1,608.5 |   |       |   | 1,353.8 |   |
| Stock held in trust                                                                                             |   |            | (65.3   | )      |       |   | (64.8 | ) |
| Retained earnings                                                                                               |   |            | 1,506.0 |   |       |   | 1,640.1 |   |
| Accumulated other comprehensive loss                                                                            |   |            | (260.8  | )      |       |   | (388.5 | ) |
| Total shareholders’ equity                                                                                |   |            | 2,871.3 |   |       |   | 2,612.4 |   |
| Noncontrolling interests                                                                                        |   |            | 8.7     |   |       |   | 9.9 |   |
| Total equity                                                                                                    |   |            | 2,880.0 |   |       |   | 2,622.3 |   |
| Total liabilities and equity                                                                                    |   | $               | 7,720.8 |   |       | $      | 7,200.2 |   |

----

SMITHFIELD FOODS, INC. 

|                                                                      |   | Six Months Ended |    |
|---------------------------------------------------------------------------|--------|------------------|---------|
|                                                                      |   | November 1,2009  |    |   | October 26,2008 |   |
|                                                                      |   | (Unaudited)      |    |
| Cash flows from operating activities:                                     |   |             |    |   |   |   |
| Net loss                                                                  |   | $                | (134.1  | ) |   | $ | (11.5 | ) |
| Adjustments to reconcile net cash flows from operating activities:        |   |             |    |   |   |   |   |   |
| Income from discontinued operations, net of tax                           |   |             | -       |   |   |   | (50.1 | ) |
| Impairment of assets                                                      |   |             | 38.5    |   |   |   | - |   |
| Equity in (income) loss of affiliates                                     |   |             | (23.8   | ) |   |   | 24.0 |   |
| Depreciation and amortization                                             |   |             | 120.0   |   |   |   | 137.2 |   |
| Changes in operating assets and liabilities and other, net                |   |             | 119.5   |   |   |   | (337.7 | ) |
| Net cash flows from operating activities                                  |   |             | 120.1   |   |   |   | (238.1 | ) |
|                                                                      |   |             |    |   |   |   |   |   |
| Cash flows from investing activities:                                     |   |             |    |   |   |   |   |   |
| Capital expenditures                                                      |   |             | (98.9   | ) |   |   | (114.7 | ) |
| Disposition                                                               |   |             | -  |   |   |   | 580.0 |   |
| Investments                                                               |   |             | -  |   |   |   | (25.6 | ) |
| Insurance proceeds                                                        |   |             | 20.0    |   |   |   | - |   |
| Other                                                                     |   |             | 5.4     |   |   |   | (0.4 | ) |
| Net cash flows from investing activities                                  |   |             | (73.5   | ) |   |   | 439.3 |   |
|                                                                      |   |             |    |   |   |   |   |   |
| Cash flows from financing activities:                                     |   |             |    |   |   |   |   |   |
| Proceeds from the issuance of long-term debt                              |   |             | 840.1   |   |   |   | 600.0 |   |
| Principal payments on long-term debt and capital lease obligations        |   |             | (313.6  | ) |   |   | (41.6 | ) |
| Net repayments on revolving credit facilities and notes payables          |   |             | (463.0  | ) |   |   | (855.0 | ) |
| Net proceeds from the issuance of common stock and stock option exercises |   |             | 294.8   |   |   |   | 122.3 |   |
| Purchase of call options                                                  |   |             | -       |   |   |   | (88.2 | ) |
| Proceeds from the sale of warrants                                        |   |             | -       |   |   |   | 36.7 |   |
| Debt issuance costs                                                       |   |             | (59.3   | ) |   |   | (11.0 | ) |
| Net cash flows from financing activities                                  |   |             | 299.0   |   |   |   | (236.8 | ) |
|                                                                      |   |             |    |   |   |   |   |   |
| Cash flows from discontinued operations:                                  |   |             |    |   |   |   |   |   |
| Net cash flows from operating activities                                  |   |             | -       |   |   |   | 34.7 |   |
| Net cash flows from investing activities                                  |   |             | -       |   |   |   | (7.0 | ) |
| Net cash flows from financing activities                                  |   |             | -       |   |   |   | (0.8 | ) |
| Net cash flows from discontinued operations activities                    |   |             | -       |   |   |   | 26.9 |   |
|                                                                      |   |             |    |   |   |   |   |   |
| Effect of foreign exchange rate changes on cash                           |   |             | 0.2     |   |   |   | (6.0 | ) |
| Net change in cash and cash equivalents                                   |   |             | 345.8   |   |   |   | (14.7 | ) |
| Cash and cash equivalents at beginning of period                          |   |             | 119.0   |   |   |   | 57.3 |   |
| Cash and cash equivalents at end of period                                |   | $                | 464.8   |   |   | $ | 42.6 |   |
|                                                                      |   |             |    |   |   |   |   |   |
| Non-cash investing and financing activities:                              |   |             |    |   |   |   |   |   |
| Investment in Butterball                                                  |   | $                | -       |   |   | $ | (24.5 | ) |
| Common stock issued for acquisition                                       |   | $                | -       |   |   | $ | (60.4 | ) |

----

SMITHFIELD FOODS, INC. 

----

|              |   | Three Months Ended |   |   | Six Months Ended |   |
|-------------------|--------|--------------------|--------|--------|------------------|--------|
|              |   | November 1,2009    |   |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|              |   | (in millions)      |   |   | (in millions)    |   |
| Sales             |   | $                  | -      |   |             | $      | 884.9 |   |   | $ | - |   |   | $ | 1,699.0 |   |
| Interest expense  |   |               | -      |   |             |   | 7.5 |   |   |   | - |   |   |   | 17.3 |   |
| Net income (loss) |   |               | -      |   |             |   | (16.8 | ) |   |   | - |   |   |   | 0.9 |   |

----

|             |   | Three Months Ended |   |   | Six Months Ended |   |
|------------------|--------|--------------------|--------|--------|------------------|--------|
|             |   | November 1,2009    |   |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|             |   | (in millions)      |   |   | (in millions)    |   |
| Sales            |   | $                  | -      |   |             | $      | - |   |   | $ | - |   |   | $ | 3.8 |   |
| Interest expense |   |               | -      |   |             |   | 0.5 |   |   |   | - |   |   |   | 1.3 |   |
| Net loss         |   |               | -      |   |             |   | (0.9 | ) |   |   | - |   |   |   | (2.7 | ) |

|                     |   | November 1,2009 |    |   | May 3,2009 |   |
|--------------------------|--------|-----------------|---------|--------|------------|--------|
|                     |   | (in millions)   |    |
| Live hogs                |   | $               | 886.5   |   |       | $      | 838.4 |   |
| Fresh and packaged meats |   |            | 811.9   |   |       |   | 789.1 |   |
| Manufacturing supplies   |   |            | 76.9    |   |       |   | 72.7 |   |
| Grains and other         |   |            | 153.5   |   |       |   | 195.9 |   |
| Total inventories        |   | $               | 1,928.8 |   |       | $      | 1,896.1 |   |
|                     |   |            |    |   |       |   |   |   |

----

|                                             |   | Assets          |   |   | Liabilities   |   |
|--------------------------------------------------|--------|-----------------|--------|--------|---------------|--------|
|                                             |   | November 1,2009 |   |   | May 3,2009    |   |   | November 1,2009 |   |   | May 3,2009 |   |
|                                             |   | (in millions)   |   |   | (in millions) |   |
| Derivatives using the "hedge accounting" method: |   |            |   |   |          |   |   |   |   |   |   |   |
| Grain contracts                                  |   | $               | 18.6   |   |          | $      | 10.4 |   |   | $ | 18.8 |   |   | $ | 17.7 |   |
| Livestock contracts                              |   |            | 1.2    |   |          |   | - |   |   |   | 0.3 |   |   |   | - |   |
| Interest rate contracts                          |   |            | -      |   |          |   | 0.6 |   |   |   | 10.0 |   |   |   | 10.3 |   |
| Foreign exchange contracts                       |   |            | 2.5    |   |          |   | 2.8 |   |   |   | 0.2 |   |   |   | 14.4 |   |
| Total                                            |   |            | 22.3   |   |          |   | 13.8 |   |   |   | 29.3 |   |   |   | 42.4 |   |
|                                             |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives using the "mark-to-market" method:   |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Grain contracts                                  |   |            | 2.9    |   |          |   | 10.2 |   |   |   | 4.4 |   |   |   | 16.2 |   |
| Livestock contracts                              |   |            | 7.0    |   |          |   | 21.9 |   |   |   | 7.9 |   |   |   | 6.3 |   |
| Energy contracts                                 |   |            | 0.2    |   |          |   | - |   |   |   | 5.4 |   |   |   | 13.0 |   |
| Foreign exchange contracts                       |   |            | 1.3    |   |          |   | 0.3 |   |   |   | 4.1 |   |   |   | 1.6 |   |
| Total                                            |   |            | 11.4   |   |          |   | 32.4 |   |   |   | 21.8 |   |   |   | 37.1 |   |
| Total fair value of derivative instruments       |   | $               | 33.7   |   |          | $      | 46.2 |   |   | $ | 51.1 |   |   | $ | 79.5 |   |

----

|                 |   | Minimum |        |   | Maximum |   | Metric      |
|----------------------|--------|---------|-------------|--------|---------|--------|-------------|
| Commodities:         |   |    |        |   |    |   |        |
| Corn                 |   |    | -           |   |    |   | 79,035,000  |   |  Bushels |
| Soybean meal         |   |    | 78,900      |   |    |   | 403,900     |   |  Tons |
| Lean Hogs            |   |    | -           |   |    |   | 146,480,000 |   |  Pounds |
| Interest rate        |   |    | 200,000,000 |   |    |   | 200,000,000 |   |  U.S. Dollars |
| Foreign exchange (1) |   |    | 48,164,942  |   |    |   | 105,397,976 |   |  U.S. Dollars |

|                       |   | Gain (Loss) Recognized in OCI on Derivative (Effective Portion) |   |   | Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) |   |   | Loss Recognized in Earnings on Derivative (Ineffective Portion) |   |
|----------------------------|--------|-----------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                       |   | Three Months Ended                                              |   |   | Three Months Ended                                                                   |   |   | Three Months Ended                                              |   |
|                       |   | November 1,2009                                                 |   |   | October 26,2008                                                                      |   |   | November 1,2009                                                 |   |   | October 26,2008 |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                       |   | (in millions)                                                   |   |   | (in millions)                                                                        |   |   | (in millions)                                                   |   |
| Commodity contracts:       |   |                                                            |   |   |                                                                                 |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Grain contracts            |   | $                                                               | 16.3   |   |                                                                                 | $      | (39.5  | )                                                               |   | $  | (24.2 | )  |   | $  | (1.7 | ) |   | $  | (4.3 | ) |   | $  | (2.0 | ) |
| Lean hog contracts         |   |                                                            | 3.9    |   |                                                                                 |   | -      |                                                            |   |   | 3.2 |   |   |   | - |   |   |   | (0.1 | ) |   |   | - |   |
| Interest rate contracts    |   |                                                            | (1.3   | )      |                                                                                 |   | (5.0   | )                                                               |   |   | (1.1 | ) |   |   | (0.3 | ) |   |   | - |   |   |   | - |   |
| Foreign exchange contracts |   |                                                            | 4.5    |   |                                                                                 |   | (1.8   | )                                                               |   |   | 2.9 |   |   |   | (0.3 | ) |   |   | - |   |   |   | - |   |
| Total                      |   | $                                                               | 23.4   |   |                                                                                 | $      | (46.3  | )                                                               |   | $ | (19.2 | ) |   | $ | (2.3 | ) |   | $ | (4.4 | ) |   | $ | (2.0 | ) |
|                       |   |                                                            |   |   |                                                                                 |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                                            |   |   |                                                                                 |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | Six Months Ended                                                |   |   | Six Months Ended                                                                     |   |   | Six Months Ended                                                |   |
|                       |   | November 1,2009                                                 |   |   | October 26,2008                                                                      |   |   | November 1,2009                                                 |   |   | October 26,2008 |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                       |   | (in millions)                                                   |   |   | (in millions)                                                                        |   |   | (in millions)                                                   |   |
| Commodity contracts:       |   |                                                            |   |   |                                                                                 |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grain contracts            |   | $                                                               | 2.8    |   |                                                                                 | $      | (216.7 | )                                                               |   | $ | (83.7 | ) |   | $ | (0.9 | ) |   | $ | (6.8 | ) |   | $ | (8.1 | ) |
| Lean hog contracts         |   |                                                            | 5.7    |   |                                                                                 |   | -      |                                                            |   |   | 3.2 |   |   |   | - |   |   |   | (0.1 | ) |   |   | - |   |
| Interest rate contracts    |   |                                                            | 1.4    |   |                                                                                 |   | (5.0   | )                                                               |   |   | (2.6 | ) |   |   | (0.3 | ) |   |   | - |   |   |   | - |   |
| Foreign exchange contracts |   |                                                            | 10.6   |   |                                                                                 |   | (1.0   | )                                                               |   |   | (4.6 | ) |   |   | 0.5 |   |   |   | - |   |   |   | - |   |
| Total                      |   | $                                                               | 20.5   |   |                                                                                 | $      | (222.7 | )                                                               |   | $ | (87.7 | ) |   | $ | (0.7 | ) |   | $ | (6.9 | ) |   | $ | (8.1 | ) |

----

|                 |   | Minimum |       |   | Maximum |   | Metric     |
|----------------------|--------|---------|------------|--------|---------|--------|------------|
| Corn                 |   |    | 7,510,000  |   |    |   | 11,610,000 |   |  Bushels |
| Interest rate        |   |    | -          |   |    |   | 50,000,000 |   |  U.S. Dollars |
| Foreign exchange (1) |   |    | 16,051,549 |   |    |   | 19,822,036 |   |  U.S. Dollars |

|                       |   | Gain (Loss) Recognized in Earnings on Derivative |   |   | Gain (Loss) Recognized in Earnings on Related Hedged Item |   |
|----------------------------|--------|--------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|
|                       |   | Three Months Ended                               |   |   | Three Months Ended                                        |   |
|                       |   | November 1,2009                                  |   |   | October 26,2008                                           |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                       |   | (in millions)                                    |   |   | (in millions)                                             |   |
| Commodity contracts        |   | $                                                | 3.7    |   |                                                      | $      | 1.7 |   |   | $ | (2.8 | ) |   | $ | (0.4 | ) |
| Interest rate contracts    |   |                                             | -      |   |                                                      |   | (0.2 | ) |   |   | - |   |   |   | 0.2 |   |
| Foreign exchange contracts |   |                                             | 2.0    |   |                                                      |   | (0.7 | ) |   |   | (0.9 | ) |   |   | - |   |
| Total                      |   | $                                                | 5.7    |   |                                                      | $      | 0.8 |   |   | $ | (3.7 | ) |   | $ | (0.2 | ) |
|                       |   |                                             |   |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                             |   |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | Six Months Ended                                 |   |   | Six Months Ended                                          |   |
|                       |   | November 1,2009                                  |   |   | October 26,2008                                           |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                       |   | (in millions)                                    |   |   | (in millions)                                             |   |
| Commodity contracts        |   | $                                                | 6.0    |   |                                                      | $      | (0.9 | ) |   | $ | (4.8 | ) |   | $ | (0.3 | ) |
| Interest rate contracts    |   |                                             | 0.6    |   |                                                      |   | 2.0 |   |   |   | (0.6 | ) |   |   | (2.0 | ) |
| Foreign exchange contracts |   |                                             | 3.1    |   |                                                      |   | (1.2 | ) |   |   | (1.4 | ) |   |   | - |   |
| Total                      |   | $                                                | 9.7    |   |                                                      | $      | (0.1 | ) |   | $ | (6.8 | ) |   | $ | (2.3 | ) |

----

|                 |   | Minimum |       |   | Maximum |   | Metric      |
|----------------------|--------|---------|------------|--------|---------|--------|-------------|
| Commodities:         |   |    |       |   |    |   |        |
| Lean hogs            |   |    | 9,000,000  |   |    |   | 248,960,000 |   |  Pounds |
| Corn                 |   |    | 3,832,500  |   |    |   | 27,560,000  |   |  Bushels |
| Soybean meal         |   |    | 87,500     |   |    |   | 166,350     |   |  Tons |
| Soybeans             |   |    | 140,000    |   |    |   | 345,000     |   |  Bushels |
| Wheat                |   |    | -          |   |    |   | 360,000     |   |  Bushels |
| Live cattle          |   |    | -          |   |    |   | 640,000     |   |  Pounds |
| Pork bellies         |   |    | -          |   |    |   | 1,080,000   |   |  Pounds |
| Natural gas          |   |    | 3,970,000  |   |    |   | 5,040,000   |   |  Million BTU's |
| Foreign exchange (1) |   |    | 69,005,721 |   |    |   | 141,575,138 |   |  U.S. Dollars |

|                       |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------|--------|--------------------|--------|--------|------------------|--------|
|                       |   | November 1,2009    |   |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                       |   | (in millions)      |   |   | (in millions)    |   |
| Commodity contracts        |   | $                  | 2.4    |   |             | $      | 40.7 |   |   | $ | 14.5 |   |   | $ | 51.3 |   |
| Interest rate contracts    |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | 0.2 |   |
| Foreign exchange contracts |   |               | (4.8   | )      |             |   | 0.6 |   |   |   | (11.0 | ) |   |   | 1.0 |   |
| Total                      |   | $                  | (2.4   | )      |             | $      | 41.3 |   |   | $ | 3.5 |   |   | $ | 52.5 |   |

----

|                                       |   | Accrued BalanceMay 3, 2009 |   |   | 1st Quarter FY 2010 Expense |   |   | 2nd Quarter FY 2010 Expense |   |   | Payments |   |   | Accrued BalanceNovember 1, 2009 |   |   | Cumulative Expense-to-Date |   |   | Estimated Remaining Expense |   |
|--------------------------------------------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|----------|--------|--------|---------------------------------|--------|--------|----------------------------|--------|--------|-----------------------------|--------|
| Restructuring charges:                     |   | (in millions)              |   |
| Employee severance and related benefits    |   | $                          | 11.9   |   |                        | $      | (0.2   | )                           |   | $      | 0.4      |   |   | $                               | (2.7   | )      |                       | $      | 9.4    |                        |   | $ | 12.5 |   |   | $ | 0.6 |   |
| Other associated costs                     |   |                       | 0.5    |   |                        |   | 6.5    |                        |   |   | 3.0      |   |   |                            | (9.1   | )      |                       |   | 0.9    |                        |   |   | 11.2 |   |   |   | 10.2 |   |
| Total restructuring charges                |   | $                          | 12.4   |   |                        | $      | 6.3    |                        |   | $      | 3.4      |   |   | $                               | (11.8  | )      |                       | $      | 10.3   |                        |   |   | 23.7 |   |   | $ | 10.8 |   |
|                                       |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   |   |   |   |   |   |   |
| Impairment charges:                        |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   |   |   |   |   |   |   |
| Property, plant and equipment              |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   | 69.4 |   |   |   |   |   |
| Inventory                                  |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   | 4.8 |   |   |   |   |   |
| Total impairment charges                   |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   | 74.2 |   |   |   |   |   |
| Total restructuring and impairment charges |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   | $      | 97.9                        |   |   |   |   |   |

| Equity Investment                             |   | % Owned |   |   | November 1,2009 |   |   | May 3,2009 |   |
|-----------------------------------------------|--------|--------------|--------|--------|-----------------|--------|--------|------------|--------|
|                                          |   |         |   |   | (in millions)   |   |
| Campofrío Food Group (CFG) (1) |   |  37%    |   | $      | 456.7           |   |   | $          | 417.8  |   |
| Butterball, LLC (Butterball)                  |   |  49%    |   |   | 85.6            |   |   |       | 78.2   |   |
| Mexican joint ventures                        |   | Various      |   |   | 60.8            |   |   |       | 53.9   |   |
| Other                                         |   | Various      |   |   | 52.4            |   |   |       | 51.7   |   |
| Total investments                             |   |         |   |   |            | $      | 655.5  |       |   | $ | 601.6 |   |

| (1) | Prior to the third quarter of fiscal 2009, we owned 50% of Groupe Smithfield S.L. (Groupe Smithfield) and 24% of Campofrío Alimentación, S.A. (Campofrío).  Those entities merged in the third quarter of fiscal 2009 to form CFG, of which we currently own 37%.  The amounts presented for CFG throughout this Quarterly Report on Form 10-Q represent the combined historical results ofGroupe Smithfield and Campofrío. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   |          |   | Three Months Ended |   |   | Six Months Ended |   |
|---------------------------------------|--------|---------------|--------|--------------------|--------|--------|------------------|--------|
| Equity Investment                     |   | Segment       |   | November 1,2009    |   |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                                  |   |          |   | (in millions)      |   |   | (in millions)    |   |
| Butterball                            |   | Other         |   | $                  | (8.0   | )      |             | $      | 14.0 |   |   | $ | (7.4 | ) |   | $ | 20.5 |   |
| Campofrío Food Group (2)         |   | International |   |               | (4.2   | )      |             |   | (0.1 | ) |   |   | (7.8 | ) |   |   | 3.6 |   |
| Mexican joint ventures                |   | Various       |   |               | (1.3   | )      |             |   | 8.6 |   |   |   | (6.9 | ) |   |   | 1.2 |   |
| All other equity method investments   |   | Various       |   |               | -      |   |             |   | (0.6 | ) |   |   | (1.7 | ) |   |   | (1.3 | ) |
| Equity in (income) loss of affiliates |   |          |   | $                  | (13.5  | )      |             | $      | 21.9 |   |   | $ | (23.8 | ) |   | $ | 24.0 |   |

| (2)  | CFG prepares its financial statements in accordance with International Financial Reporting Standards. Our share of CFG’s results reflects U.S. GAAP adjustments and thus, there may be differences between the amounts we report for CFG and the amounts reported by CFG. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                    |   | As Originally Presented May 3, 2009 |    |   | Adjustments |   |          | As Adjusted May 3, 2009 |   |
|---------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------|--------|---------------|-------------------------|--------|
|                                                    |   |                                |    |   |        |   | (in millions) |                    |   |   |   |   |
| Other assets                                            |   | $                                   | 161.2   |   |        | $      | (2.3          | )                       |   | $ | 158.9 |   |
| Total assets                                            |   |                                | 7,202.5 |   |        |   | (2.3          | )                       |   |   | 7,200.2 |   |
| Long-term debt and capital lease obligations            |   |                                | 2,649.9 |   |        |   | (82.6         | )                       |   |   | 2,567.3 |   |
| Other liabilities                                       |   |                                | 686.2   |   |        |   | 29.3          |                    |   |   | 715.5 |   |
| Additional paid-in capital                              |   |                                | 1,294.7 |   |        |   | 59.1          |                    |   |   | 1,353.8 |   |
| Retained earnings                                       |   |                                | 1,648.2 |   |        |   | (8.1          | )                       |   |   | 1,640.1 |   |
| Total Smithfield Foods, Inc. shareholders’ equity |   |                                | 2,561.4 |   |        |   | 51.0          |                    |   |   | 2,612.4 |   |
| Total liabilities and shareholders’ equity        |   |                                | 7,202.5 |   |        |   | (2.3          | )                       |   |   | 7,200.2 |   |

|                                                |   | As Originally Presented Fiscal 2009                    |   |   | Adjustments |   |   | As Adjusted Fiscal 2009 |   |
|-----------------------------------------------------|--------|--------------------------------------------------------|--------|--------|-------------|--------|--------|-------------------------|--------|
|                                                |   |  (in millions, except per share data)   |   |
| Interest expense                                    |   | $                                                      | 209.1  |   |        | $      | 12.7   |                    |   | $ | 221.8 |   |
| Loss from continuing operations before income taxes |   |                                                   | (369.5 | )      |        |   | (12.7  | )                       |   |   | (382.2 | ) |
| Income tax benefit                                  |   |                                                   | (126.7 | )      |        |   | (4.6   | )                       |   |   | (131.3 | ) |
| Loss from continuing operations                     |   |                                                   | (242.8 | )      |        |   | (8.1   | )                       |   |   | (250.9 | ) |
| Net loss                                            |   |                                                   | (190.3 | )      |        |   | (8.1   | )                       |   |   | (198.4 | ) |
|                                                |   |                                                   |   |   |        |   |   |                    |   |   |   |   |
| Loss per basic and diluted share:                   |   |                                                   |   |   |        |   |   |                    |   |   |   |   |
| Continuing operations                               |   | $                                                      | (1.72  | )      |        | $      | (.06   | )                       |   | $ | (1.78 | ) |
| Net loss                                            |   |                                                   | (1.35  | )      |        |   | (.06   | )                       |   |   | (1.41 | ) |

|                                                |   | Three Months Ended October 26, 2008                          |   |   | Six Months Ended October 26, 2008                                  |   |
|-----------------------------------------------------|--------|--------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|
|                                                |   | As Originally Presented                                      |   |   | Adjustments                                                        |   |   | As Adjusted |   |   | As Originally Presented |   |   | Adjustments |   |   | As Adjusted |   |
|                                                |   |  (in millions, except per share data)    |   |   |   (in millions, except per share data)    |   |
| Interest expense                                    |   | $                                                            | 52.1   |   |                                                               | $      | 4.1 |   |   | $ | 56.2 |   |   | $ | 96.6 |   |   | $ | 4.9 |   |   | $ | 101.5 |   |
| Loss from continuing operations before income taxes |   |                                                         | (51.1  | )      |                                                               |   | (4.1 | ) |   |   | (55.2 | ) |   |   | (93.1 | ) |   |   | (4.9 | ) |   |   | (98.0 | ) |
| Income tax benefit                                  |   |                                                         | (21.1  | )      |                                                               |   | (1.6 | ) |   |   | (22.7 | ) |   |   | (34.6 | ) |   |   | (1.8 | ) |   |   | (36.4 | ) |
| Loss from continuing operations                     |   |                                                         | (30.0  | )      |                                                               |   | (2.5 | ) |   |   | (32.5 | ) |   |   | (58.5 | ) |   |   | (3.1 | ) |   |   | (61.6 | ) |
| Net income (loss)                                   |   |                                                         | 4.2    |   |                                                               |   | (2.5 | ) |   |   | 1.7 |   |   |   | (8.4 | ) |   |   | (3.1 | ) |   |   | (11.5 | ) |
|                                                |   |                                                         |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) per basic and diluted share:          |   |                                                         |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                               |   | $                                                            | (.21   | )      |                                                               | $      | (.02 | ) |   | $ | (.23 | ) |   | $ | (.42 | ) |   | $ | (.02 | ) |   | $ | (.44 | ) |
| Net income (loss)                                   |   |                                                         | .03    |   |                                                               |   | (.02 | ) |   |   | .01 |   |   |   | (.06 | ) |   |   | (.02 | ) |   |   | (.08 | ) |

----

|                                                |   | Three Months Ended November 1, 2009  |   |   | Six Months Ended November 1, 2009 |   |
|-----------------------------------------------------|--------|--------------------------------------|--------|--------|-----------------------------------|--------|
|                                                |   | (in millions, except per share data) |   |
| Interest expense                                    |   | $                                    | 4.2    |   |                              | $      | 8.1 |   |
| Loss from continuing operations before income taxes |   |                                 | (4.2   | )      |                              |   | (8.1 | ) |
| Income tax benefit                                  |   |                                 | (1.6   | )      |                              |   | (3.0 | ) |
| Loss from continuing operations                     |   |                                 | (2.6   | )      |                              |   | (5.1 | ) |
| Net loss                                            |   |                                 | (2.6   | )      |                              |   | (5.1 | ) |
|                                                |   |                                 |   |   |                              |   |   |   |
| Loss per basic and diluted share:                   |   |                                 |   |   |                              |   |   |   |
| Continuing operations                               |   | $                                    | (.02   | )      |                              | $      | (.03 | ) |
| Net loss                                            |   |                                 | (.02   | )      |                              |   | (.03 | ) |

----

|                           |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                           |   | November 1,2009    |   |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                           |   | (in millions)      |   |   | (in millions)    |   |
| Service cost                   |   | $                  | 5.7    |   |             | $      | 6.4 |   |   | $ | 11.3 |   |   | $ | 12.8 |   |
| Interest cost                  |   |               | 18.5   |   |             |   | 17.2 |   |   |   | 36.9 |   |   |   | 34.3 |   |
| Expected return on plan assets |   |               | (12.3  | )      |             |   | (17.5 | ) |   |   | (24.6 | ) |   |   | (34.9 | ) |
| Net amortization               |   |               | 5.0    |   |             |   | 1.6 |   |   |   | 10.1 |   |   |   | 3.2 |   |
| Net periodic pension cost      |   | $                  | 16.9   |   |             | $      | 7.7 |   |   | $ | 33.7 |   |   | $ | 15.4 |   |

----

----

|                              |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                              |   | November 1,2009    |   |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                              |   | (in millions)      |   |   | (in millions)    |   |
| Net income (loss)                 |   | $                  | (26.4  | )      |             | $      | 1.7 |   |   | $ | (134.1 | ) |   | $ | (11.5 | ) |
| Hedge accounting                  |   |               | 17.3   |   |             |   | (112.1 | ) |   |   | 63.1 |   |   |   | (140.3 | ) |
| Foreign currency translation      |   |               | 12.3   |   |             |   | (108.5 | ) |   |   | 59.1 |   |   |   | (95.4 | ) |
| Pension accounting                |   |               | 3.0    |   |             |   | - |   |   |   | 5.5 |   |   |   | 0.7 |   |
| Total comprehensive income (loss) |   | $                  | 6.2    |   |             | $      | (218.9 | ) |   | $ | (6.4 | ) |   | $ | (246.5 | ) |

----

|                                            |   | Fair Value Measurements |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|-------------------------------------------------|--------|-------------------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                            |   | (in millions)           |   |
| Assets                                          |   |                    |   |   |         |   |   |         |   |   |         |   |
| Derivatives                                     |   | $                       | 3.8    |   |         | $      | -      |         |   | $      | 3.8          |   |   | $ | - |   |
| Money market fund                               |   |                    | 383.2  |   |         |   | 383.2  |         |   |   | -            |   |   |   | - |   |
| Cash surrender value of life insurance policies |   |                    | 27.9   |   |         |   | 27.9   |         |   |   |         |   |   |   | - |   |
| Total                                           |   | $                       | 414.9  |   |         | $      | 411.1  |         |   | $      | 3.8          |   |   | $ | - |   |
|                                            |   |                    |   |   |         |   |   |         |   |   |         |   |   |   |   |   |
|                                            |   |                    |   |   |         |   |   |         |   |   |         |   |   |   |   |   |
| Liabilities                                     |   |                    |   |   |         |   |   |         |   |   |         |   |   |   |   |   |
| Derivatives                                     |   | $                       | 22.4   |   |         | $      | 0.3    |         |   | $      | 22.1         |   |   | $ | - |   |

----

|        |   | November 1, 2009 |    |   | May 3, 2009    |   |
|-------------|--------|------------------|---------|--------|----------------|--------|
|        |   | FairValue        |    |   | Carrying Value |   |   | FairValue |   |   | Carrying Value |   |
|        |   | (in millions)    |    |   | (in millions)  |   |
| Public debt |   | $                | 2,962.6 |   |           | $      | 2,996.5 |   |   | $ | 2,448.2 |   |   | $ | 2,882.8 |   |

----

|                                 |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                 |   | November 1,2009    |    |   | October 26,2008  |   |   | November 1,2009 |   |   | October 26,2008 |   |
|                                 |   | (in millions)      |    |   | (in millions)    |   |
| Sales:                               |   |               |    |   |             |   |   |   |   |   |   |   |
| Segment sales—                 |   |               |    |   |             |   |   |   |   |   |   |   |
| Pork                                 |   | $                  | 2,241.7 |   |             | $      | 2,590.1 |   |   | $ | 4,493.5 |   |   | $ | 5,169.3 |   |
| International                        |   |               | 336.0   |   |             |   | 402.5 |   |   |   | 634.3 |   |   |   | 807.8 |   |
| Hog Production                       |   |               | 554.9   |   |             |   | 748.8 |   |   |   | 1,107.1 |   |   |   | 1,474.6 |   |
| Other                                |   |               | 26.7    |   |             |   | 46.8 |   |   |   | 97.9 |   |   |   | 91.0 |   |
| Total segment sales                  |   |               | 3,159.3 |   |             |   | 3,788.2 |   |   |   | 6,332.8 |   |   |   | 7,542.7 |   |
| Intersegment sales—            |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Pork                                 |   |               | (7.2    | )      |             |   | (13.8 | ) |   |   | (15.6 | ) |   |   | (28.4 | ) |
| International                        |   |               | (14.5   | )      |             |   | (17.8 | ) |   |   | (27.1 | ) |   |   | (34.1 | ) |
| Hog Production                       |   |               | (445.2  | )      |             |   | (609.5 | ) |   |   | (882.4 | ) |   |   | (1,191.3 | ) |
| Total intersegment sales             |   |               | (466.9  | )      |             |   | (641.1 | ) |   |   | (925.1 | ) |   |   | (1,253.8 | ) |
| Consolidated sales                   |   | $                  | 2,692.4 |   |             | $      | 3,147.1 |   |   | $ | 5,407.7 |   |   | $ | 6,288.9 |   |
|                                 |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating profit (loss):             |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Pork                                 |   | $                  | 173.7   |   |             | $      | 93.4 |   |   | $ | 274.7 |   |   | $ | 155.1 |   |
| International                        |   |               | 15.6    |   |             |   | 11.0 |   |   |   | 22.9 |   |   |   | 16.9 |   |
| Hog Production                       |   |               | (167.3  | )      |             |   | (58.0 | ) |   |   | (329.4 | ) |   |   | (96.8 | ) |
| Other                                |   |               | (0.8    | )      |             |   | (12.1 | ) |   |   | (5.4 | ) |   |   | (18.8 | ) |
| Corporate                            |   |               | (19.4   | )      |             |   | (33.3 | ) |   |   | (35.8 | ) |   |   | (52.9 | ) |
| Consolidated operating profit (loss) |   | $                  | 1.8     |   |             | $      | 1.0 |   |   | $ | (73.0 | ) |   | $ | 3.5 |   |

----

ITEM 2.                      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

|   | § | maintain and expand market share, particularly in packaged meats, |
|--------|--------|-------------------------------------------------------------------|

|   | § | develop and maintain strong customer relationships, |
|--------|--------|-----------------------------------------------------|

|   | § | continually innovate and differentiate our products, |
|--------|--------|------------------------------------------------------|

|   | § | manage risk in volatile commodities markets, and |
|--------|--------|--------------------------------------------------|

|   | § | maintain our position as a low cost producer of live hogs, fresh pork and packaged meats. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | § | Pork segment operating profit increased sharply to $173.7 million driven by substantially improved results related to the packaged meats component of the segment. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | International segment operating profit improved from the prior year quarter. The improvement is mainly attributable to strong results in Poland and from our equity method investments. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The Hog Production segment incurred significant operating losses due to low live hog market prices and high feed costs. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | § | The Other segment losses were lower due to improved results at Butterball. |
|--------|--------|----------------------------------------------------------------------------|

----

|   | § | Pork— Operating profits in this segment were the highest the Company has ever recorded in a second quarter and first six-month period, despite year over year volume decreases and a fresh pork environment that was depressed throughout the first quarter. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | International—We expect our international meat operations to continue improving their operating performance as we move further into fiscal 2010. We expect to continue to see positive contributions from our investment in CFG due to an improving pork environment in Europe and as the realization of synergies associated with the prior year mergerwith Groupe Smithfield begin to be more fully realized.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Hog Production—The swine industry in the United States has been coping with an oversupply of market hogs and worldwide recessionary conditions.  Hog producers industry-wide have suffered considerable losses as the price of feed grains has risen and, at the same time,oversupply conditions have depressed live hog prices.  After a considerable and extended period of sizable losses in the hog production industry, the U.S. sow herd appears to be slowly contracting.  Herd reductions, as they occur throughout the industry, will over time begin to tighten supplies and should result in higher live hog market prices in the U.S.  However, it may take time for the oversupply situation to correct itself.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | Other—As with the Hog Production segment, high grain costs adversely impacted the profitability of our turkey operations throughout fiscal 2009.  We saw improvements in turkey raising costs in the first six months of fiscal 2010 as corn prices have declined from last year’s highs.  We expect our turkey operations and ourinvestment in Butterball to continue to improve and return to profitability in the second half of fiscal 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   | Accrued BalanceMay 3, 2009 |   |   | 1st Quarter FY 2010 Expense |   |   | 2nd Quarter FY 2010 Expense |   |   | Payments |   |   | Accrued BalanceNovember 1, 2009 |   |   | Cumulative Expense-to-Date |   |   | Estimated Remaining Expense |   |
|--------------------------------------------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|----------|--------|--------|---------------------------------|--------|--------|----------------------------|--------|--------|-----------------------------|--------|
| Restructuring charges:                     |   | (in millions)              |   |
| Employee severance and related benefits    |   | $                          | 11.9   |   |                        | $      | (0.2   | )                           |   | $      | 0.4      |   |   | $                               | (2.7   | )      |                       | $      | 9.4    |                        |   | $ | 12.5 |   |   | $ | 0.6 |   |
| Other associated costs                     |   |                       | 0.5    |   |                        |   | 6.5    |                        |   |   | 3.0      |   |   |                            | (9.1   | )      |                       |   | 0.9    |                        |   |   | 11.2 |   |   |   | 10.2 |   |
| Total restructuring charges                |   | $                          | 12.4   |   |                        | $      | 6.3    |                        |   | $      | 3.4      |   |   | $                               | (11.8  | )      |                       | $      | 10.3   |                        |   |   | 23.7 |   |   | $ | 10.8 |   |
|                                       |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   |   |   |   |   |   |   |
| Impairment charges:                        |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   |   |   |   |   |   |   |
| Property, plant and equipment              |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   | 69.4 |   |   |   |   |   |
| Inventory                                  |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   | 4.8 |   |   |   |   |   |
| Total impairment charges                   |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   |   |                        |   |   | 74.2 |   |   |   |   |   |
| Total restructuring and impairment charges |   |                       |   |   |                        |   |   |                        |   |   |     |   |   |                            |   |   |                       |   | $      | 97.9                        |   |   |   |   |   |

----

|                |   | Three Months Ended |    |   | Six Months Ended |    |
|---------------------|--------|--------------------|---------|--------|------------------|---------|
|                |   | November 1,2009    |    |   | October 26,2008  |    |   | %  Change |   |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |   |
|                |   | (in millions)      |    |   |             |    |   | (in millions) |   |   |   |   |
| Sales               |   | $                  | 2,692.4 |   |             | $       | 3,147.1 |   |   |   | (14 | ) % |   | $ | 5,407.7 |   |   | $ | 6,288.9 |   |   |   | (14 | ) % |
| Cost of sales       |   |               | 2,524.1 |   |             |    | 2,914.5 |   |   |   | (13 | ) |   |   | 5,140.7 |   |   |   | 5,861.1 |   |   |   | (12 | ) |
| Gross profit        |   | $                  | 168.3   |   |             | $  | 232.6 |   |   |   | (28 | ) |   | $  | 267.0 |   |   | $  | 427.8 |   |   |   | (38 | ) |
| Gross profit margin |   |               | 6       | %      |             |    | 7 | % |   |   |   |   |   |   | 5 | % |   |   | 7 | % |   |   |   |   |

|   | § | Fresh pork sales in the Pork segment decreased 21% from the prior year quarter as a 2% increase in volumes was more than offset by a 23% decrease in the average unit selling price as fresh pork market prices continue to be affected by an oversupply in the U.S. market and closure of certain key export markets. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Packaged meat sales in the Pork segment decreased 6% from the prior year quarter on a decrease in the average unit selling price of 2% and a decrease in volumes of 4%. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Strengthening underlying foreign currencies decreased sales approximately $121.5 million, or 4% of prior year sales. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | § | Domestic raising costs decreased to $53 per hundredweight from $63 per hundredweight in the prior year quarter. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | § | Domestic live hog market prices decreased to $36 per hundredweight from $53 in the prior year quarter. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | § | Fresh pork sales in the Pork segment decreased 22% from the prior year on a 5% decrease in volumes and a 18% decrease in the average unit selling price as fresh pork market prices continue to be affected by an oversupply in the U.S. market and closure of certain key export markets. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Packaged meat sales in the Pork segment decreased 4% from the prior year as a 7% decrease in volumes was partially offset by a 3% increase in the average unit selling price. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Strengthening underlying foreign currencies decreased sales approximately $258.1 million, or 4% of prior year sales. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | § | Domestic raising costs decreased to $55 per hundredweight from $61 per hundredweight in the prior year. |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | § | Domestic live hog market prices decreased to $39 per hundredweight from $54 per hundredweight in the prior year. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | § | Gross profit for the current year includes $34.1 million in impairments in Hog Production related to the anticipated closure of certain farms and the expected sale of certain farms, as well as $7.1 million in restructuring charges related to the Pork segment restructuring. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | Three Months Ended |   | Six Months Ended |
|----------------------------------------------|--------|--------------------|--------|------------------|
|                                         |   | November 1,2009    |   |             | October 26,2008 |   |   | %  Change |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |
|                                         |   | (in millions)      |   |             |   |   |   | (in millions) |   |   |   |   |
| Selling, general and administrative expenses |   | $                  | 180.0  |             |   | $ | 209.7 |   |   |   | (14 | ) % |   | $ | 363.8 |   |   | $ | 400.3 |   |   |   | (9 | ) % |

|   | § | Marketing and advertising expenses decreased in the current year quarter by approximately $9.6 million compared to the prior year quarter. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The prior year quarter included charges for union related litigation costs of $5.9 million. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | § | Foreign currency transaction gains for the current year quarter were $2.0 million compared to losses of $3.9 million in the prior year quarter, resulting in a year over year decrease of $5.9 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The current year quarter included income from mark-to-market gains on the cash surrender value of life insurance while the prior year quarter included a mark-to-market loss.  This change resulted in a year over year decrease of $4.3 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The impact of foreign currency translation from our international subsidiaries decreased selling, general and administrative expenses approximately $3.9 million in the current year quarter. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § § § | Marketing and advertising expenses decreased in the current year by approximately $16.0 million compared to the prior year. The prior year included charges for union related litigation costs of $12.3 million. The impact of foreign currency translation from our international subsidiaries decreased selling, general and administrative expenses approximately $11.5 million in the current year. |
|--------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The current year included income from mark-to-market gains on the cash surrender value of life insurance while the prior year included a mark-to-market loss.  This change resulted in a year over year decrease of $9.5 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Foreign currency transaction losses for the current year were $2.9 million compared to gains of $6.0 million in the prior year, resulting in a year over year increase of $8.9 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | Three Months Ended |   |   | Six Months Ended |   |
|---------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                  |   | November 1,2009    |   |   | October 26,2008  |   |   | %  Change |   |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |   |
|                                  |   | (in millions)      |   |   |             |   |   | (in millions) |   |   |   |   |
| Butterball                            |   | $                  | (8.0   | )      |             | $      | 14.0 |   |   |   | 157 | % |   | $ | (7.4 | ) |   | $ | 20.5 |   |   |   | 136 | % |
| Campofrío Food Group (1)         |   |               | (4.2   | )      |             |   | (0.1 | ) |   | NM |   |   |   | (7.8 | ) |   |   | 3.6 |   |   |   | 317 |   |
| Mexican joint ventures                |   |               | (1.3   | )      |             |   | 8.6 |   |   |   | 115 |   |   |   | (6.9 | ) |   |   | 1.2 |   |   | NM |   |
| All other equity method investments   |   |               | -      |   |             |   | (0.6 | ) |   |   | (100 | ) |   |   | (1.7 | ) |   |   | (1.3 | ) |   |   | 31 |   |
| Equity in (income) loss of affiliates |   | $                  | (13.5  | )      |             | $      | 21.9 |   |   |   | 162 |   |   | $ | (23.8 | ) |   | $ | 24.0 |   |   |   | 199 |   |

|  (1) | Prior to the third quarter of fiscal 2009, we owned 50% of Groupe Smithfield S.L. (Groupe Smithfield) and 24% of Campofrío Alimentación, S.A. (Campofrío).  Those entities merged in the third quarter of fiscal 2009 to form CFG, of which we currently own 37%.  The amounts presented for CFG represent the combined historical results of Groupe Smithfield and Campofrío. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  The following items explain the significant changes in equity in (income) loss of affiliates: |
|--------|-----------------------------------------------------------------------------------------------------|

|   | § | Equity income from CFG improved over the prior year quarter, primarily on an improving pork environment in Europe. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | § | Butterball’s results improved over the prior year quarter, primarily on improvements in live-turkey pricing. In the second quarter of fiscal 2010, the live turkey transfer pricing agreement between us and Butterball was modified from a cost-based pricing arrangement to a market-based pricing arrangement, which resulted in lower sales to Butterball. The same modification was made to the transferpricing agreement between Butterball and our joint venture partner. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Equity income from CFG improved over the prior year due to an improving pork environment in Europe and as the realization of synergies associated with the prior year merger with Groupe Smithfield have begun to be more fully realized. The prior year included $5.5 million of operating losses and impairment charges relating to its discontinued Russian operations. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Butterball’s results improved over the prior year quarter, primarily on improvements in live-turkey pricing in the second quarter. In the second quarter of fiscal 2010, the live turkey transfer pricing agreement between us and Butterball was modified from a cost-based pricing arrangement to a market-based pricing arrangement, which resulted in lower sales to Butterball. The same modificationwas made to the transfer pricing agreement between Butterball and our joint venture partner. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Three Months Ended |   | Six Months Ended |
|------------------|--------|--------------------|--------|------------------|
|             |   | November 1,2009    |   |             | October 26,2008 |   |   | %  Change |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |
|             |   | (in millions)      |   |             |   |   |   | (in millions) |   |   |   |   |
| Interest expense |   | $                  | 71.2   |             |   | $ | 56.2 |   |   |   | 27 | % |   | $ | 131.7 |   |   | $ | 101.5 |   |   |   | 30 | % |

|   | § | $21.1 million is due to interest and amortization of debt costs on the July 2009 $850 million 2014 Notes issuance. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | § | $1.1 million is due to interest associated with the Rabobank Term Loan (as defined under "Liquidity and Capital Resources" below). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | § | These were partially offset by the impact of paying off certain debt prior to the end of the second quarter. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | § | $26.9 million is due to interest and amortization of debt costs on the July 2009 $850 million 2014 Notes issuance. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | § | $6.1 million is attributable to interest and amortization of debt cost on the July 2008 Convertible Notes issuance. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | § | $4.0 million is due to interest associated with the Rabobank Term Loan. |
|--------|--------|-------------------------------------------------------------------------|

|   | § | These were partially offset by the impact of paying off certain debt prior to the end of the second quarter. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

----

|                        |   | Three Months Ended |   | Six Months Ended |
|-----------------------------|--------|--------------------|--------|------------------|
|                        |   | November 1,2009    |   |             | October 26,2008 |   | %  Change |   | November 1,2009 |   |   | October 26,2008 |   | %  Change |
|                        |   | (in millions)      |   |             |   | (in millions) |   |   |
| Loss on debt extinguishment |   | $                  | 3.6    |             |   | $ | - |   | NM |   | $ | 11.0 |   |   | $ | - |   | NM |

|                             |  Three Months Ended |         |  Six Months Ended |
|----------------------------------|--------------------------|--------------|------------------------|
|                             |  November 1,2009    |         |  October 26,2008  |   |  November 1,2009 |   |  October 26,2008 |
| Income tax benefit (in millions) | $                   |  (46.6) |                   | $  |  (22.7) |   | $  |  (81.6) |   | $  |  (36.4) |
| Effective tax rate               |                     | 64%          |                   |   | 41% |   |   | 38% |   |   | 37% |

----

|                                                     |   | Three Months Ended                        |    |   | Six Months Ended |   |
|----------------------------------------------------------|--------|-------------------------------------------|---------|--------|------------------|--------|
|                                                     |   | November 1,2009                           |    |   | October 26,2008  |   |   | %  Change |   |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |   |
|                                                     |   | (in millions, unless indicated otherwise) |    |   |             |   |   | (in millions, unless indicated otherwise) |   |   |   |   |
| Sales:                                                   |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh pork                                               |   | $                                         | 990.9   |   |             | $      | 1,259.3 |   |   |   | (21 | ) % |   | $ | 2,024.3 |   |   | $ | 2,600.5 |   |   |   | (22 | ) % |
| Packaged meats                                           |   |                                      | 1,250.8 |   |             |   | 1,330.8 |   |   |   | (6 | ) |   |   | 2,469.2 |   |   |   | 2,568.8 |   |   |   | (4 | ) |
| Total                                                    |   | $                                         | 2,241.7 |   |             | $      | 2,590.1 |   |   |   | (13 | ) % |   | $ | 4,493.5 |   |   | $ | 5,169.3 |   |   |   | (13 | ) % |
|                                                     |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating profit:                                        |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh pork                                               |   | $                                         | 42.6    |   |             | $      | 53.0 |   |   |   | (20 | ) % |   | $ | 35.8 |   |   | $ | 80.7 |   |   |   | (56 | ) % |
| Packaged meats                                           |   |                                      | 131.1   |   |             |   | 40.4 |   |   |   | 225 |   |   |   | 238.9 |   |   |   | 74.4 |   |   |   | 221 |   |
| Total                                                    |   | $                                         | 173.7   |   |             | $      | 93.4 |   |   |   | 86 | % |   | $ | 274.7 |   |   | $ | 155.1 |   |   |   | 77 | % |
|                                                     |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales volume:                                            |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh pork                                               |   |                                      |    |   |             |   |   |   |   |   | 2 | % |   |   |   |   |   |   |   |   |   |   | (5 | ) % |
| Packaged meats                                           |   |                                      |    |   |             |   |   |   |   |   | (4 | ) |   |   |   |   |   |   |   |   |   |   | (7 | ) |
| Total                                                    |   |                                      |    |   |             |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | (5 | ) |
|                                                     |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average unit selling price:                              |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh pork                                               |   |                                      |    |   |             |   |   |   |   |   | (23 | ) % |   |   |   |   |   |   |   |   |   |   | (18 | ) % |
| Packaged meats                                           |   |                                      |    |   |             |   |   |   |   |   | (2 | ) |   |   |   |   |   |   |   |   |   |   | 3 |   |
| Total                                                    |   |                                      |    |   |             |   |   |   |   |   | (13 | ) |   |   |   |   |   |   |   |   |   |   | (8 | ) |
|                                                     |   |                                      |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average domestic live hog prices (per hundredweight) (1) |   | $                                         | 36.37   |   |             | $      | 53.49 |   |   |   | (32 | ) % |   | $ | 39.17 |   |   | $ | 54.40 |   |   |   | (28 | ) % |

| (1) | Represents the average live hog market price as quoted by the Iowa-Southern Minnesota hog market. |
|-----|---------------------------------------------------------------------------------------------------|

|   | § | Fresh pork sales and operating profit were negatively impacted as fresh pork market prices continue to be affected by an oversupply in the U.S. market and closure of certain key export markets. The impact of lower average unit selling prices on operating profit were partially offset by lower raw material costs. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Packaged meats operating profit improved substantially due to pricing discipline, rationalization of less profitable business, low raw material costs and early benefits of the Restructuring Plan. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The Pork segment recorded restructuring charges of $3.4 million in the second quarter of fiscal 2010 with $2.5 million recorded in the packaged meats component of the segment and $0.9 million recorded in the fresh pork component of the segment. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Transportation and energy costs decreased 19% and 25%, respectively, compared to the prior year quarter as fuel costs returned to lower levels from the highs seen throughout fiscal 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | The decline in fresh pork sales and operating profit is reflective of a fresh pork environment that was weak throughout the first quarter of fiscal 2010 but began improving early in the second quarter of fiscal 2010. A(H1N1) has negatively impacted fresh pork demand, especially in exports where certain key markets have remained closed throughout fiscal 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Packaged meats operating profit improved substantially due to pricing discipline, rationalization of less profitable business, low raw material costs and early benefits of the Restructuring Plan. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The Pork segment recorded restructuring charges of $9.7 million in fiscal 2010 with $8.6 million recorded in the packaged meats component of the segment and $1.1 million recorded in the fresh pork component of the segment. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Transportation and energy costs decreased 22% and 20%, respectively, compared to the prior year as fuel costs returned to lower levels from the highs seen throughout fiscal 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------|--------|--------------------|--------|--------|------------------|--------|
|                       |   | November 1,2009    |   |   | October 26,2008  |   |   | %  Change |   |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |   |
|                       |   | (in millions)      |   |   |             |   |   | (in millions) |   |   |   |   |
| Sales                      |   | $                  | 336.0  |   |             | $      | 402.5 |   |   |   | (17 | ) % |   | $ | 634.3 |   |   | $ | 807.8 |   |   |   | (21 | ) % |
| Operating profit           |   |               | 15.6   |   |             |   | 11.0 |   |   |   | 42 |   |   |   | 22.9 |   |   |   | 16.9 |   |   |   | 36 |   |
|                       |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales volume               |   |               |   |   |             |   |   |   |   |   | 17 | % |   |   |   |   |   |   |   |   |   |   | 13 | % |
| Average unit selling price |   |               |   |   |             |   |   |   |   |   | (29 | ) |   |   |   |   |   |   |   |   |   |   | (30 | ) |

|   | § | Foreign currency translation caused sales to decrease by $121.5 million, or 30%. Stronger underlying functional currencies of our foreign subsidiaries reduced the U.S. dollar sales amount. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Total sales volume increased 17% with fresh pork volume increasing 4% and packaged meats volume increasing 46%. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | § | Sales and operating profit were negatively impacted by a 3% decrease in the average unit selling price in local currencies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | § | We recorded a profit from our equity method investments of $5.2 million in the second quarter of fiscal 2010 compared to a profit of $0.7 million in the same quarter last year. CFG improved over the prior year quarter primarily on an improving pork environment in Europe. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Foreign currency translation caused sales to decrease by $258.1 million, or 32%. Stronger underlying functional currencies of our foreign subsidiaries reduced the U.S. dollar sales amount. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | Total sales volume increased 13% with packaged meats volume increasing 36% and fresh pork volume decreasing 2%. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | § | Sales and operating profit were negatively impacted by a 2% decrease in the average unit selling price in local currencies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | § | We recorded a profit from our equity method investments of $10.2 million in the first six months of fiscal 2010 compared to a loss of $2.5 million in the same quarter last year. The prior year loss included operating losses and impairment charges taken by CFG on its discontinued Russian operations, our share of which was $5.5 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | Three Months Ended                        |   |   | Six Months Ended |   |
|----------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------|--------|
|                                                     |   | November 1,2009                           |   |   | October 26,2008  |   |   | %  Change |   |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |   |
|                                                     |   | (in millions, unless indicated otherwise) |   |   |             |   |   | (in millions, unless indicated otherwise) |   |   |   |   |
| Sales                                                    |   | $                                         | 554.9  |   |             | $      | 748.8 |   |   |   | (26 | ) % |   | $ | 1,107.1 |   |   | $ | 1,474.6 |   |   |   | (25 | ) % |
| Operating loss                                           |   |                                      | (167.3 | )      |             |   | (58.0 | ) |   |   | (188 | ) |   |   | (329.4 | ) |   |   | (96.8 | ) |   |   | (240 | ) |
|                                                     |   |                                      |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Head sold                                                |   |                                      | 4.93   |   |             |   | 4.98 |   |   |   | (1 | ) % |   |   | 9.33 |   |   |   | 9.72 |   |   |   | (4 | ) % |
|                                                     |   |                                      |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average domestic live hog prices (per hundredweight) (1) |   | $                                         | 36.37  |   |             | $      | 53.49 |   |   |   | (32 | ) % |   | $ | 39.17 |   |   | $ | 54.40 |   |   |   | (28 | ) % |
| Domestic raising costs (per hundredweight)               |   |                                      | 53.17  |   |             |   | 62.61 |   |   |   | (15 | ) |   |   | 55.33 |   |   |   | 61.33 |   |   |   | (10 | ) |

| (1) | Represents the average live hog market price as quoted by the Iowa-Southern Minnesota hog market. |
|-----|---------------------------------------------------------------------------------------------------|

|   | § | Total head sold decreased 1% reflecting the impact of our sow reduction program.  We expect the program will decrease the number of market animals by 2.2 million annually. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Average U.S. market prices decreased 32% due to an oversupply of live hogs. |
|--------|--------|-----------------------------------------------------------------------------|

|   | § | High grain costs have continued to negatively affect operating profit. Domestic raising costs decreased 15% from the prior year quarter to $53.17 per hundredweight from $62.61 per hundredweight in the prior year.  Corn cost for the quarter decreased 33% while soybean meal prices increased 4%. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Total head sold decreased 4% reflecting the impact of our sow reduction program.  We expect the program will decrease the number of market animals by 2.2 million annually. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Average U.S. market prices decreased 28% due to an oversupply of live hogs. |
|--------|--------|-----------------------------------------------------------------------------|

|   | § | High grain costs have continued to negatively affect operating profit. Domestic raising costs decreased 10% from the prior year to $55.33 per hundredweight from $61.33 per hundredweight in the prior year.  Corn costs for the year have decreased 26% while soybean meal prices increased 5%. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Operating losses through the first six months of fiscal 2010 include a $34.1 million impairment charge related to the anticipated closure of certain farms and the expected sale of certain farms. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|           |   | Three Months Ended |   | Six Months Ended |
|----------------|--------|--------------------|--------|------------------|
|           |   | November 1,2009    |   |             | October 26,2008 |   |   | %  Change |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |
|           |   | (in millions)      |   |             |   |   |   | (in millions) |   |   |   |   |
| Sales          |   | $                  | 26.7   |             |   | $ | 46.8 |   |   |   | (43 | ) % |   | $ | 97.9 |   |   | $ | 91.0 |   |   |   | 8 | % |
| Operating loss |   |               | (0.8   | )                |   |   | (12.1 | ) |   |   | 93 |   |   |   | (5.4 | ) |   |   | (18.8 | ) |   |   | 71 |   |

|   | § | The decrease in sales was due primarily to live-turkey pricing decreases in the second quarter of fiscal 2010 and a decrease in volumes compared to the prior year quarter. In the second quarter of fiscal 2010, our live turkey transfer pricing agreement with Butterball was modified from a cost-based pricing arrangement to a market-based pricing arrangement, which resulted in lower salesto Butterball and higher losses in our raising operations. The same modification was made to the transfer pricing agreement between Butterball and our joint venture partner. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We recorded a profit from our equity method investments of $8.1 million in the second quarter of fiscal 2010 compared to a loss of $13.4 million in the same quarter last year. This improvement is primarily due to lower raw material costs at Butterball. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The increase in sales was due to the current year inclusion of sales from our cattle operations. In June, we sold the remaining 21,000 head of Holstein cattle in a single transaction worth $17 million.  The cattle were essentially sold at book value. This was partially offset by a decrease in sales at our wholly-owned turkey operations which experienced a decrease in live-turkey pricing and a decreasein volumes sold. In the second quarter of fiscal 2010, our live turkey transfer pricing agreement with Butterball was modified from a cost-based pricing arrangement to a market-based pricing arrangement, which resulted in lower sales to Butterball and higher losses in our raising operations. The same modification was made to the transfer pricing agreement between Butterball and our joint venture partner. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We recorded a profit from our equity method investments of $7.5 million in the first six months of fiscal 2010 compared to a loss of $19.8 million in the same period last year. This improvement is primarily due to lower raw material costs at Butterball. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|           |   | Three Months Ended |   | Six Months Ended |
|----------------|--------|--------------------|--------|------------------|
|           |   | November 1,2009    |   |             | October 26,2008 |   |   | %  Change |   | November 1,2009 |   |   | October 26,2008 |   |   | %  Change |
|           |   | (in millions)      |   |             |   |   |   | (in millions) |   |   |   |   |
| Operating loss |   | $                  | (19.4  | )                |   | $ | (33.3 | ) |   |   | 42 | % |   | $ | (35.8 | ) |   | $ | (52.9 | ) |   |   | 32 | % |

|   | § | Foreign currency transaction gains were $1.1 million in the second quarter of fiscal 2010 compared to losses of $9.3 million in the same quarter last year. This change resulted in a year over year improvement of $10.4 million. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The current year quarter included income from mark-to-market gains on the cash surrender value of life insurance while the prior year quarter included a mark-to-market loss.  This change resulted in a year over year decrease of $4.3 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The current year included income from mark-to-market gains on the cash surrender value of life insurance while the prior year included a mark-to-market loss.  This change resulted in a year over year decrease of $9.5 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Foreign currency transaction gains were $1.1 million through the first six months of fiscal 2010 compared to losses of $7.8 million in the same period last year. This changes resulted in a year over year improvement of $8.9 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | As of November 1, 2009, our liquidity position exceeded $1.2 billion, comprised of $786.4 million of availability under the ABL Credit Facility (as defined below), $464.8 million in cash and cash equivalents and $30.9 million of availability under international credit lines. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We have generated positive net cash flows from operating activities in the past four consecutive quarters, including $120.1 million through the first six months of fiscal 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We have no substantial debt obligations coming due until the second quarter of fiscal 2012. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | § | Future cash flows from operations should continue to benefit from improved operating efficiencies and plant utilization as a result of the Restructuring Plan. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | November 1, 2009 |    |
|--------------------------|--------|------------------|---------|
| Facility                 |   | Capacity         |    |   | Borrowing Base Adjustment |   |   | Outstanding Letters of Credit |   |   | Outstanding Borrowings |   |   | Amount Available |   |
|                     |   | (in millions)    |    |
| ABL Credit Facility      |   | $                | 1,000.0 |   |   | $ | (5.0 | ) |   | $ | (208.6 | ) |   | $ | - |   |   | $ | 786.4 |   |
| International facilities |   |             | 98.0    |   |   |   | -  |   |   |   | -  |   |   |   | (67.1 | ) |   |   | 30.9 |   |
| Total credit facilities  |   | $                | 1,098.0 |   |   | $ | (5.0 | ) |   | $ | (208.6 | ) |   | $ | (67.1 | ) |   | $ | 817.3 |   |

----

|                                     |   | Six Months Ended |   |
|------------------------------------------|--------|------------------|--------|
|                                     |   | November 1,2009  |   |   | October 26,2008 |   |
|                                     |   | (in millions)    |   |
| Net cash flows from operating activities |   | $                | 120.1  |   |   | $ | (238.1 | ) |

|   | § | Cash paid to outside hog suppliers was significantly less than the prior year due to a 28% decline in average live hog market prices. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We paid approximately $97 million less for grains in fiscal 2010 due to substantially lower feed prices. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | § | Cash received for the settlement of derivative contracts and for margin requirements was $35.2 million in fiscal 2010 compared to cash paid of $90.5 million in fiscal 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Cash paid for transportation and energy decreased due to significantly lower fuel prices and energy costs. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | § | We received a cash dividend from CFG of approximately $16.6 million in the first quarter of fiscal 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | § | The decline in cash paid for raw materials was partially offset by less cash received from customers as a result of lower sales volumes and average unit selling prices. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | Net cash receipts related to taxes decreased by $44.6 million due to a large refund in the prior year. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|                                     |   | Six Months Ended |   |
|------------------------------------------|--------|------------------|--------|
|                                     |   | November 1,2009  |   |   | October 26,2008 |   |
|                                     |   | (in millions)    |   |
| Capital expenditures                     |   | $                | (98.9  | ) |   | $ | (114.7 | ) |
| Disposition                              |   |             | -      |   |   |   | 580.0 |   |
| Investments                              |   |             | -      |   |   |   | (25.6 | ) |
| Insurance proceeds                       |   |             | 20.0   |   |   |   | - |   |
| Other                                    |   |             | 5.4    |   |   |   | (0.4 | ) |
| Net cash flows from investing activities |   | $                | (73.5  | ) |   | $ | 439.3 |   |

|   | § | Capital expenditures primarily related to the Restructuring Plan, the purchase of property and equipment previously leased and plant and hog farm improvement projects. Capital spending was reduced in fiscal 2010 due to our continued focus on driving efficiencies and debt reduction. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Insurance proceeds were received as advancements on claims associated with a fire at the primary manufacturing facility of our subsidiary, Patrick Cudahy, Incorporated, in Cudahy, Wisconsin. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We received $580.0 million from the sale of Smithfield Beef. |
|--------|--------|--------------------------------------------------------------|

|   | § | Capital expenditures primarily related to plant and hog farm improvement projects. |
|--------|--------|------------------------------------------------------------------------------------|

|   | § | We invested $27.0 million in connection with the formation of Cattleco, LLC, a 50/50 joint venture established to sell the remaining cattle inventories of our former cattle joint venture, Five Rivers, LLC, which were excluded from the sale of our beef operations to JBS S.A. in October 2008 (fiscal 2009). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                      |   | Six Months Ended |   |
|---------------------------------------------------------------------------|--------|------------------|--------|
|                                                                      |   | November 1,2009  |   |   | October 26,2008 |   |
|                                                                      |   | (in millions)    |   |
| Proceeds from the issuance of long-term debt                              |   | $                | 840.1  |   |   | $ | 600.0 |   |
| Principal payments on long-term debt and capital lease obligations        |   |             | (313.6 | ) |   |   | (41.6 | ) |
| Net repayments on revolving credit facilities and notes payables          |   |             | (463.0 | ) |   |   | (855.0 | ) |
| Net proceeds from the issuance of common stock and stock option exercises |   |             | 294.8  |   |   |   | 122.3 |   |
| Purchase of call options                                                  |   |             | -      |   |   |   | (88.2 | ) |
| Proceeds from the sale of warrants                                        |   |             | -      |   |   |   | 36.7 |   |
| Debt issuance costs                                                       |   |             | (59.3  | ) |   |   | (11.0 | ) |
| Net cash flows from financing activities                                  |   | $                | 299.0  |   |   | $ | (236.8 | ) |

----

|   | § | In July 2009 (fiscal 2010), we issued $625 million aggregate principal amount of 10% senior secured notes at a price equal to 96.201% of their face value. In August 2009 (fiscal 2010), we issued an additional $225 million aggregate principal amount of 10% senior secured notes at a price equal to 104% of their face value, plus accrued interest from July 2, 2009 to August 14, 2009. Collectively, these notes, whichmature in July 2014, are referred to as the “2014 Notes.” Interest payments are due semi-annually on January 15 and July 15. The 2014 Notes are guaranteed by substantially all of our U.S. subsidiaries. The 2014 Notes are secured by first-priority liens, subject to permitted liens and exceptions for excluded assets, in substantially all of the guarantors’ real property, fixtures and equipment (collectively, the Non-ABL Collateral) and are secured by second-priority liens on cash and cash equivalents,deposit accounts, accounts receivable, inventory, other personal property relating to such inventory and accounts receivable and all proceeds therefrom, intellectual property, and certain capital stock and interests, which secure the ABL Credit Facility on a first-priority basis (collectively, the ABL Collateral). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In July 2009, we entered into a new $200 million term loan due August 29, 2013 (the Rabobank Term Loan), which replaced our then existing $200 million term loan that was scheduled to mature in August 2011. We are obligated to repay $25 million of the borrowings under the Rabobank Term Loan on each of August 29, 2011 and August 29, 2012. We may elect to prepay the loan at any time, subject to the paymentof certain prepayment fees in respect of any voluntary prepayment prior to August 29, 2011 and other customary breakage costs. Outstanding borrowings under this loan will accrue interest at variable rates. Our obligations under the Rabobank Term Loan are guaranteed by substantially all of our U.S. subsidiaries on a senior secured basis. The Rabobank Term Loan is secured by first-priority liens on the Non-ABL Collateral and is secured by second-priority liens on the ABL Collateral, which secures our obligationsunder the ABL Credit Facility on a first-priority basis. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In September 2009, we issued 21,660,649 shares of common stock in a registered public offering at $13.85 per share. In October 2009, we issued an additional 598,141 shares of common stock at $13.85 per share to cover over-allotments from the offering. We incurred costs of $13.5 million associated with the offering. The net proceeds from the offering were used to repay our $206.3 million senior unsecured notes,which matured in October 2009, and for working capital and other general corporate purposes. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | We paid debt issuance costs totaling $59.3 million related to the 2014 Notes, the Rabobank Term Loan and the ABL Credit Facility. The debt issuance costs were capitalized and are being amortized into interest expense over the life of each instrument. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In July 2008, we issued $400.0 million aggregate principal amount of 4% convertible senior notes due June 30, 2013 in a registered offering (the Convertible Notes). The Convertible Notes are payable with cash and, at certain times, are convertible into shares of our common stock based on an initial conversion rate, subject to adjustment, of 44.082 shares per $1,000 principal amount of Convertible Notes(which represents an initial conversion price of approximately $22.68 per share). Upon conversion, a holder will receive cash up to the principal amount of the Convertible Notes and shares of our common stock for the remainder, if any, of the conversion obligation. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | We borrowed $200.0 million under a three-year term loan with Rabobank. |
|--------|--------|------------------------------------------------------------------------|

|   | § | In July 2008, we issued a total of 7,000,000 shares of our common stock to Starbase International Limited, a company registered in the British Virgin Islands which is a subsidiary of COFCO (Hong Kong) Limited (COFCO). The shares were issued at a purchase price of $17.45 per share. The proceeds from the issuance of these shares were used to reduce amounts outstanding under the U.S. Credit Facility. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In June 2008, we entered into a $200.0 million unsecured committed credit facility with JP Morgan Chase Bank, N.A. and Goldman Sachs Credit Partners L.P., intended to help bridge our working capital needs through the time of the closing of the sale of Smithfield Beef in the event we were unable to issue the Convertible Notes. We borrowed only $50.0 million under this credit facility as it replaced an existingand fully drawn $50.0 million line. We repaid the $50.0 million in June 2008 and terminated this credit facility in July 2008. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------------|------------------------------------------------------------|

|             |   | November 1,2009 |   |   | May 3,2009 |   |
|------------------|--------|-----------------|--------|--------|------------|--------|
|             |   | (in millions)   |   |
| Livestock        |   | $               | 20.3   |   |       | $      | 12.6 |   |
| Grains           |   |            | 37.0   |   |       |   | 17.1 |   |
| Energy           |   |            | 2.0    |   |       |   | 2.0 |   |
| Interest rates   |   |            | 0.4    |   |       |   | 0.5 |   |
| Foreign currency |   |            | 0.3    |   |       |   | 15.7 |   |

| ITEM 4. | CONTROLS AND PROCEDURES |
|--------------|-------------------------|

----

PART II—OTHER INFORMATION 

| ITEM 1. | LEGAL PROCEEDINGS |
|--------------|-------------------|

| ITEM 1A. | RISK FACTORS |
|---------------|--------------|

|   | § | approximately $3,026.9 million of indebtedness; |
|--------|--------|-------------------------------------------------|

|   | § | guarantees of up to $90.8 million for the financial obligations of certain unconsolidated joint ventures and hog farmers; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | § | guarantees of $14.9 million for leases that were transferred to JBS in connection with the sale of Smithfield Beef; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | § | aggregate borrowing capacity available under our ABL Credit Facility totaling $786.4 million, taking into account a borrowing base adjustment of $5.0 million, outstanding borrowings of $0 million and outstanding letters of credit of $208.6 million. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | it may, together with the financial and other restrictive covenants in the agreements governing our indebtedness, significantly limit or impair our ability in the future to obtain financing, refinance any of our indebtedness, sell assets or raise equity on commercially reasonable terms or at all, which could cause us to default on our obligations and materially impair our liquidity, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | a downgrade in our credit rating could restrict or impede our ability to access capital  markets at attractive rates and increase the cost of future borrowings. For example, in fiscal 2009, both Standard & Poor’s Rating Services (S&P) and Moody’s Investors Services twice downgraded our credit ratings, which resulted in increased interest expense, and our credit rating is currentlyon negative watch by S&P, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | it may reduce our flexibility to respond to changing business and economic conditions or to take advantage of business opportunities that may arise, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | a portion of our cash flow from operations must be dedicated to interest payments on our indebtedness and is not available for other purposes, which amount would increase if prevailing interest rates rise, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | substantially all of our assets in the United States secure our ABL Credit Facility, our Rabobank Term Loan and our Senior Secured Notes, which could limit our ability to dispose of such assets or utilize the proceeds of such dispositions and, upon an event of default under any such secured indebtedness, the lenders thereunder could foreclose upon our pledged assets, and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | § | it could make us more vulnerable to downturns in general economic or industry conditions or in our business. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | § | diversion of management attention from other business concerns, |
|--------|--------|-----------------------------------------------------------------|

|   | § | difficulty with integrating businesses, operations, personnel and financial and other systems, |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | § | lack of experience in operating in the geographical market of the acquired business, |
|--------|--------|--------------------------------------------------------------------------------------|

|   | § | increased levels of debt potentially leading to associated reduction in ratings of our debt securities and adverse impact on our various financial ratios, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | the requirement that we periodically review the value at which we carry our investments in joint ventures, and, in the event we determine that the value at which we carry a joint venture investment has been impaired, the requirement to record a non-cash impairment charge, which charge could substantially affect our reported earnings in the period of such charge, would negatively impact our financial ratios andcould limit our ability to obtain financing in the future, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | potential loss of key employees and customers of the acquired business, |
|--------|--------|-------------------------------------------------------------------------|

|   | § | assumption of and exposure to unknown or contingent liabilities of acquired businesses, |
|--------|--------|-----------------------------------------------------------------------------------------|

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|   | § | potential disputes with the sellers, and |
|--------|--------|------------------------------------------|

|   | § | for our investments, potential lack of common business goals and strategies with, and cooperation of, our joint venture partners. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|--------------|-------------------------------------------------------------|

|   | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
|--------|------------------------------------------------------------------------|

| Period                               |   | Total Number of Shares Purchased |            |   |    | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1) |
|--------------------------------------|--------|--------------------------------------------|-----------------|--------|---------|-----------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|
| August 3, 2009 to September 2, 2009  |   |  -                                    |            |   |    |  n/a                         |   |   | n/a                                                                                   |   |   |  2,873,430                                                                        |
| September 3, 2009 to October 2, 2009 |   |  28,712                               |            |   | $  |  12.72                       |   |   | n/a                                                                                   |   |   |  2,873,430                                                                        |
| October 3, 2009 to November 1, 2009  |   |  -                                    |            |   |    |  n/a                         |   |   | n/a                                                                                   |   |   |  2,873,430                                                                        |
| Total                                |   |  28,712                               |  (2)  |   | $       |  12.72                       |   |   | n/a                                                                                   |   |   |  2,873,430                                                                        |

| (1) | As of November 1, 2009, our board of directors had authorized the repurchase of up to 20,000,000 shares of our common stock. The original repurchase plan was announced on May 6, 1999 and increases in the number of shares we may repurchase under the plan were announced on December 15, 1999, January 20, 2000, February 26, 2001, February 14, 2002 and June 2, 2005. Thereis no expiration date for this repurchase plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The purchases were made in open market transactions by Wells Fargo, as trustee, and the shares are held in a rabbi trust for the benefit of participants in the Smithfield Foods, Inc. 2008 Incentive Compensation Plan director fee deferral program. The 2008 Incentive Compensation Plan was approved by our shareholders on August 27, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|--------------|---------------------------------|

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ITEM 4.                      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 

| 1. | To elect as directors the following nominees to serve a three-year term on our Board of Directors: |
|----|----------------------------------------------------------------------------------------------------|

| Director Nominee    |   | Votes For   |   | Votes Withheld |
|--------------------------|--------|-------------|--------|---------------------|
| Joseph W. Luter, III     |   | 129,915,771 |   | 2,155,324           |
| Wendell H. Murphy        |   | 126,978,653 |   | 5,092,442           |
| C. Larry Pope            |   | 130,083,236 |   | 1,987,859           |
| Hon. Paul S. Trible, Jr. |   | 125,256,891 |   | 6,814,204           |

| * | On September 14, 2009, Mr. Fribourg resigned from our Board of Directors. |
|---|--------------------------------------------------------------------------------|

| 2. | To approve an amendment to the Company’s Articles of Incorporation to increase the number of authorized shares of our common stock, par value $0.50 per share, from 200 million to 500 million: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Votes For   |   | Votes Against |   | Abstentions |
|-------------|--------|--------------------|--------|-------------|
| 123,834,097 |   | 7,733,355          |   | 503,643     |

| 3. | To approve an amendment to the Smithfield Foods, Inc. 2008 Incentive Compensation Plan, which, among other things, increases the number of shares of common stock reserved for issuance by eight million: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Votes For  |   | Votes Against |   | Abstentions |   | Broker Non-Votes |
|------------|--------|--------------------|--------|-------------|--------|-----------------------|
| 90,905,330 |   | 22,191,243         |   | 539,748     |   | 18,434,774            |

| 4. | To ratify the selection of Ernst & Young LLP as our independent auditors for the fiscal year ending May 2, 2010: |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| Votes For   |   | Votes Against |   | Abstentions |
|-------------|--------|--------------------|--------|-------------|
| 131,290,217 |   | 295,231            |   | 485,647     |

| 5. | To consider a shareholder proposal requesting the Company to set a timeline for transitioning to group pens: |
|----|--------------------------------------------------------------------------------------------------------------|

| Votes For |   | Votes Against |   | Abstentions |   | Broker Non-Votes |
|-----------|--------|--------------------|--------|-------------|--------|-----------------------|
| 2,268,013 |   | 93,069,094         |   | 18,299,214  |   | 18,434,774            |

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| ITEM 5. | OTHER INFORMATION |
|--------------|-------------------|

| ITEM 6. | EXHIBITS   |
|--------------|-----------------|

| Exhibit 3.1  | — | Articles of Amendment effective August 27, 2009 to the Amended and Restated Articles of Incorporation, including the Amended and Restated Articles of Incorporation of the Company, as amended to date (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q filed with the SECon September 11, 2009).                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit 3.2  | — | Amendment to the Bylaws effective August 27, 2008, including the Bylaws of the Company, as amended to date (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 3, 2008).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Exhibit 4.1  | — | Form of 10% Senior Secured Note Due 2014 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed with the SEC on August 14, 2009).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Exhibit 4.2  | — | First Amendment and Consent, dated as of October 29, 2009, to the Amended and Restated Credit Agreement, dated as of July 2, 2009, among the Company, the Subsidiary Guarantors, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as syndication agent, BarclaysBank PLC, Morgan Stanley Bank, N.A. and General Electric Capital Corporation, as co-documentation agents, JPMorgan Chase Bank, N.A. and General Electric Capital Corporation, as joint collateral agents, and JPMorgan Chase Bank, N.A. as administrative agent and the Amended and Restated Pledge Agreement, dated as of July 2, 2009, among the Company, the Subsidiary Guarantors and JPMorgan Chase Bank, N.A. as administrative agent (filed herewith). |
| Exhibit 10.1 | — | Smithfield Foods, Inc. Amended and Restated 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on September 11, 2009).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Exhibit 10.2 | — | Compensation for Named Executive Officers for fiscal 2010 (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on September 11, 2009).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Exhibit 10.3 | — | Description of Incentive Award granted to George H. Richter (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 6, 2009).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Exhibit 31.1 | — | Certification of C. Larry Pope, President and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Exhibit 31.2 | — | Certification of Robert W. Manly, IV, Executive Vice President and Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Exhibit 32.1 | — | Certification of C. Larry Pope, President and Chief Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit 32.2 | — | Certification of Robert W. Manly, IV, Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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SIGNATURES 

|   |                                                                                           |
|--------|------------------------------------------------------------------------------------------------|
|   | SMITHFIELD FOODS, INC.                                                                         |
|   |                                                                                           |
|   | /s/    ROBERT W. MANLY, IV         |
|   | Robert W. Manly, IVExecutive Vice President and Chief Financial Officer                        |
|   |                                                                                           |
|   | /s/    KENNETH M. SULLIVAN         |
|   | Kenneth M. SullivanVice President and ChiefAccounting Officer                                  |

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