EXHIBIT 99.1



                                                          FOR IMMEDIATE RELEASE
                                                          For More Information
                                                          Smithfield Foods, Inc.
                                                          Aaron D. Trub
                                                          757-365-3000


              SMITHFIELD FOODS REACHES AGREEMENT WITH
         CONTROLLING SHAREHOLDERS OF SCHNEIDER CORPORATION

         Norfolk,   Virginia,   December  18,  1997  -  Smithfield  Foods,  Inc.
(NASDAQ:SFDS)  today announced that it has reached an agreement with the members
of the Schneider  Family who control  approximately  74% of the voting shares of
Schneider  Corporation  (Toronto:SCD.TO)  on the  terms of a  proposed  offer to
purchase such shares which the family members have irrevocably agreed to accept.

         Under the proposed  offer,  Smithfield  Foods will offer to acquire any
and all Common  Shares and Class A Shares of  Schneider on the basis of .5415 of
an exchangeable share of a newly incorporated,  wholly-owned Canadian subsidiary
of  Smithfield  Foods.  Each whole  exchangeable  share may be exchanged for one
share of common stock of  Smithfield  Foods.  For purposes of  establishing  the
exchange ratio,  the parties have agreed on a value for the Schneider  shares of
Cdn. $25 per share and of U.S.  $32.50 for each  Smithfield  Foods common share.
The exchangeable  shares will have voting,  dividend and liquidation rights that
are,  as nearly as  practicable,  equivalent  to those of the  Smithfield  Foods
common stock.  The exchange offer is intended to provide a tax-free  rollover to
Schneider's Canadian shareholders.

         The  terms  and  conditions  of the  offer  are to be  set  forth  in a
registration  statement  that will be filed  promptly  with the  Securities  and
Exchange  Commission.  The exchange offer will commence  after the  registration
statement  is  declared  effective  by the  SEC.  The  exchange  offer  will  be
conditional upon, among other things, the receipt of all necessary  governmental
and  regulatory  approvals  and  consents  and the absence of  material  adverse
changes in Schneider Corporation.

         Smithfield  Foods has learned that in response to its offer,  Schneider
Corporation  has waived the  application  to its proposed offer of the Schneider
Shareholder Rights Plan.

         Smithfield  Foods  has  stated  that it  intends  to  account  for this
transaction on a "pooling of interests"  basis under the United States generally
accepted accounting principles.


FORM 8-K                    DECEMBER 18, 1997                             PAGE 4


         "Schneider  Corporation is a natural fit for Smithfield  Foods," Joseph
W. Luter, III, chairman and chief executive  officer,  said. "The acquisition of
Schneider extends our market  penetration into Canada and makes Smithfield Foods
an international  player," he stated. The addition of the Schneider brand, which
is the number one processed meats brand in Canada, meshes well with Smithfield's
strategy to sharply increase the processed meats area of its business as well as
its efforts to become a more marketing driven company.

         Schneider  products include bacon, hams,  sausages,  specialty sausage,
wieners,  sliced meats,  deli meats and grocery entrees.  Schneider had sales of
Cdn. $813.4 million in its fiscal year ended October 25, 1997.

         Luter said that Schneider, like the Company's other major subsidiaries,
will have a great deal of autonomy in operating  its  business.  "The  strengths
that each  company  brings to the  other,  as well as  certain  profit-enhancing
synergies  inherent in the  transaction,  will make both more  profitable  going
forward," Luter stated.

         Luter said he expects that  Schneider  will be accretive to  Smithfield
Foods' earnings in fiscal 1999.

         Smithfield  Foods is the largest  vertically  integrated  producer  and
marketer of fresh pork and processed  meats in the United States.  The Company's
brands include Smithfield Lean Generation Pork,  Smithfield  Premium,  Gwaltney,
Patrick Cudahy, John Morrell, Lykes, Esskay, Kretschmar,  Valleydale, Jamestown,
Dinner Bell, Realean,  Patrick's Pride, Great, Tobin's First Prize, Peyton's and
others.  Smithfield  Foods had sales of $3.87  billion for the fiscal year ended
April 27, 1997.

         This news release is neither an offer to exchange nor a solicitation of
an  offer  to  exchange  shares  of  capital  stock of  Smithfield  Foods.  Such
securities  may not be sold or  exchanged  nor may offers to buy or  exchange be
accepted prior to the time the registration statement becomes effective.

         This news release may contain "forward-looking"  information within the
meaning of the federal  securities  laws. The  forward-looking  information  may
include,  among  other  information,  statements  concerning  Smithfield  Foods'
outlook  for  fiscal  1998 and  beyond,  as well as  statements  describing  the
anticipated  synergies of the proposed acquisition of Schneider and their effect
on the profitability of Smithfield Foods.  There may also be other statements of
beliefs,  future plans and strategies,  anticipated events or trends and similar


FORM 8-K                    DECEMBER 18, 1997                             PAGE 5



expressions   concerning   matters   that   are  not   historical   facts.   The
forward-looking  information  and statements in this news release are subject to
risks and  uncertainties,  including  availability  and prices of raw materials,
product  pricing,   competitive   environment  and  related  market  conditions,
operating efficiencies, access to capital and actions of governments, that could
cause actual results to differ  materially from those expressed in or implied by
the information or statements.


FORM 8-K                    DECEMBER 18, 1997                             PAGE 6