News

Smithfield CEO defends China deal in hearing

The CEO of Smithfield Foods defends the proposed acquisition of the company by a Chinese company, Shuanghui International.  Larry Pope, who testified before the Senate Agriculture Committee today, said it would result in NO changes to Smithfield but would result in more profits for U.S. pork producers.

In his testimony today, Pope said, “I don’t believe that I have gotten any feedback from any producer that is opposed to this. They are overwhelmingly supportive of this. It’s the opportunity to grow again. I don’t know of any producer who is opposed to this today.”

Pope said Smithfield would continue as “the same old Smithfield” and continue to serve its domestic customers while helping meet the demand and the need for pork in China. Pope says the deal is supported by the Michigan, Indiana and North Carolina pork groups and that NO Smithfield plants would close as a result.

Daniel Slane, head of the U.S.-China Economic and Security Review commission of the U.S. Chamber of Commerce said make no mistake, ‘this is about Chinese government and industry control,’ adding, “So here, what they have found is that multi-national, vertically-integrated meat processing companies have a cost and price advantage. So, they have told their domestic industries, like Shaunghui, ‘go out and find these companies and acquire them.’”

Slane and global business expert Dr. Usha Haley testified that the deal raises anti-trust concerns and would be a detriment to U.S. pork producing competitors if the deal goes through. Dr. Matthew Slaughter, a business expert with Dartmouth College, testified that the deal would be a benefit to Smithfield and the overall U.S. economy.

Senate Ag Committee Chairwoman said at the opening of the hearing  said that they have to “take a long-term view of what is happening” and what is in the best interests of Americans and the American economy “because of the importance of our food supply, security and safety.”