* Smithfield sees meeting debt covenants

* Pork exports recovering from flu bans

* Hog unit may lose money in fiscal 2010 (Recasts, adds CEO comments, details, byline)

By Bob Burgdorfer

CHICAGO, May 13 (Reuters) - Smithfield Foods Inc (SFD.N: Quote, Profile, Research) said on Wednesday it should meet its fiscal 2009 fourth-quarter debt covenants and appears to be on track to comply with fiscal 2010 covenants.

It also said pork exports are recovering after being disrupted recently when countries banned the meat as a precaution against the H1N1 strain of flu.

Speaking at the BMO Capital Markets' Agriculture, Protein, and Fertilizer conference, Smithfield Chief Executive C. Larry Pope said the company has paid down about $900 million in debt this past year and will pay down more and improve liquidity.

Smithfield raises hogs and produces pork and, like other meat companies, has been hurt by high feed costs and a slowdown in meat sales, particularly to restaurants, due to the recession.

To cope, it has closed plants, restructured operations, pared its hog herd, and negotiated new debt agreements.