Smithfield foods will be taking steps to grow skin and organs for human transplant purposes. Smithfield announced the creation of its bioscience unit to utilize the byproducts of its hog-raising and sausage-making factories to take on the research on the regeneration of tissue and transplants.
In an interview with Reuters, the Virginia-based company’s VP Courtney Stanton made this known:
“There is huge potential in this space, and to be at the leading edge and focused on building these relationships is critical”
The newly created subunit of the company is now part of a Department of Defense-funded group, the Advanced Regenerative Manufacturing Institute, coming up with inventions to preserve human organs and replace skin of soldiers that have been wounded in the battle field.
Smithfield Foods revealed they are working with Columbia University and Harvard Medical School to further research and develop immunology therapy. Smithfield is still keeping allot of this information private and will not divulge anything public in regards to the specifics.
In a statement released by the company, it has started selling pork byproducts to medical companies developing drugs for diseases such as indigestion, deep-vein thrombosis and hypothyroidism.
Another big player in the food industry a very successful chicken producer, Tyson Foods launched Tyson New Ventures to raise the need capital for companies working on further developing techniques and systems for feeding the growing world population, part of which included investing in a meat producing company “Beyond Meat” who are working on making artificial meat products that are plant based.
An analyst who works for Fitch Ratings, Carla Norfleet Taylor, revealed that businesses that process animals for human consumption should render the byproducts to develop pharmaceuticals or ingredients for other foods like gelatin. Companies that are currently engaged in such practices tend to have higher profit margins. Taylor said: “It only makes sense because there’s such a big market for using animal byproducts.”
These new innovative efforts of Smithfield will probably not have a big impact on its current already-healthy earnings and debt rating of the company; but the future potential can possibly produce much larger margins down the road.