The CEO of the world's biggest pork producer, Smithfield Foods, said Thursday that it will focus more on its packaged-meat business and less on fresh pork to improve profitability and reduce volatility.

The news sent the shares higher by 78 cents, or 6 percent, to $13.91 in afternoon trading.

The move by the Smithfield, Va.-based hog producer and pork processor is designed to offset the volatility of the fresh pork business, which is more affected by swings in ingredient costs and market-based pricing for its products. Pope said that Smithfield's pork processing business accounts for $10.5 billion of its $12 billion in yearly revenue, but that even though packaged meats are a smaller portion of its overall pie, they drive profit.

"We're on the cusp of changing who this company is and how Wall Street sees Smithfield," CEO C. Larry Pope told investors at a Barclays Back-to-School conference, though Smithfield will still continue to produce hogs. Pope said the company's packaged meats business gets less attention but that it is a big profit driver.

"This is the company of the future," Pope said....more