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Senators Question Smithfield Deal

Cindy Zimmerman

The Senate Agriculture Committee on Wednesday took a look at the proposed sale of Smithfield Foods to Shuanghui International, which would be the largest acquisition of an American company by a Chinese company in history.

smithfield-stabenowCommittee Chair Debbie Stabenow (D-MI) says the sale raises many questions about issues such as food safety, protection of intellectual property, and increased foreign ownership of the U.S. food supply. “Despite the strength of America’s pork sector, Smithfield has been struggling to make a profit — and yet Shuanghui is offering to pay a 30 percent premium for the company,” said Stabenow in her opening remarks. “That, to me, raises questions about the economic motivations of the purchase.”

Listen to Stabenow here: Senator Debbie Stabenow, opening remarks

smithfield-popeSmithfield Foods President and CEO C. Larry Pope was first to testify at the hearing, attempting to ease senators’ concerns about the pending purchase by noting that reaction from the agriculture industry has been very positive. “The Michigan, Indiana and North Carolina pork producers associations, the North American Meat Association, industry leaders, and numerous individual producers have expressed support for this transaction,” said Pope in his testimony. “Growth is also very good news for Smithfield’s employees and communities. We have a saying: “It will be the same old Smithfield, only better.””

Smithfield CEO Larry Pope testimony
Agribusiness, Audio, Meat, Pork