Paula Deen has been DROPPED by Smithfield -- a company specializing in pork products.
Deen had a line of hams with Smithfield ... part of The Paula Deen Collection.
The company tells TMZ, "Smithfield condemns the use of offensive and discriminatory language and behavior of any kind." The statement goes on ... "We are terminating our partnership with Paula Deen."
Smithfield then somewhat sanctimoniously says, "Smithfield is determined to be an ethical food industry leader and it is important that our values and those of our spokespeople are properly aligned."
It's not the first time Paula's taken a hit from Smithfield either -- back in 2009, she took a massive Smithfield ham to the face during a charity event.