US Farmers Attack Smithfield Takeover03 June 2013
US-CHINA - US farmers have attacked the takeover of Smithfield Foods by the Chinese meat processor Shuanghui.
National Farmers Union (NFU) President Roger Johnson said that the impact of such increased consolidation within the sector needs to be considered.
“With its vertical integration system of production, Smithfield was particularly attractive for purchase by a foreign company. Now, in one fell swoop, 26 per cent of US pork processing and 15 per cent of domestic hog production will be controlled by a foreign company,” he said.
“It’s likely that the US pork market will feel additional downward pressure in prices, as Smithfield seeks to supply the Chinese market with cheap pork.
“Consolidation in agricultural markets makes it easier for interests in other countries to control large portions of our food supply.
“Further study and understanding of concentration of markets is needed, along with enhanced enforcement of anti-trust laws.
“Independent family farmers and ranchers cannot succeed in the absence of protection from unfair, anti-competitive business practices by those who control the marketplace.”
|TheMeatSite News Desk|