SMITHFIELD FOODS -- WHICH BILLS ITSELF AS THE WORLD'S LARGEST PORK PRODUCER -- IS A
U.S. COMPANY, BUT NOW, A CHINESE COMPANY WANTS TO BUY IT.
LAWMAKERS HERE IN WASHINGTON HAVE SAID, "NOT SO FAST," QUESTIONING WHAT THE TAKEOVER COULD
MEAN FOR U-S COMPETITIVENESS AND FOOD SECURITY.
RIGHT, AND FOOD PRODUTION HAS ALREADY SEEN MASSIVE CHANGES...
WITH GROWING DEMAND WORLDWIDE FOR MEAT, MILK AND EGGS, SMALL-SCALE PRODUCTION HAS GIVEN
WAY TO LARGE, INDUSTRIAL-SCALE OPERATIONS.
BUT THE TRANSITION, ALREADY IN EFFECT IN THE UNITED STATES, HAS ALSO SPAWNED A MOVEMENT
IN THE OTHER DIRECTION, WITH INCREASING DEMAND NOW FOR SMALL-SCALE, LOCALLY RAISED PRODUCTS.
WELL, VOA AGRICULTURE REPORTER STEVE BARAGONA HAS BEEN LOOKING AT THE TRENDS AND TALKED
WITH ON ASSIGNMENT'S DOUG BERNARD.
LET'S CHECK IT OUT.
YOU'VE BEEN ON LARGE-SCALE FARMS, YOU'VE BEEN ON VERY SMALL-SCALE FARMS.
WHAT ARE THE THINGS THAT YOU NOTICE THAT ARE DIFFERENT ABOUT THESE TWO OPERATIONS?
WELL YOU KNOW WITH A SMALL FARM, THIS IS KIND OF WHAT WE THINK OF AS YOUR QUINTESSENTIAL
FARM.
AND THE LARGE FARMS ARE DEFINITELY, YOU KNOW, IT'S MORE OF AN INDUSTRIAL KIND OF OPERATION.
YOU'VE GOT YOU KNOW HUNDREDS, THOUSANDS OF ANIMALS INSIDE A BUILDING, THE BUILDING IS
TO A CERTAIN EXTENT CLIMATE-CONTROLLED, THE DISPOSAL OF WASTE IS CONTROLLED, IT DOESN'T
FEEL LIKE WHAT YOU THINK OF AS A FARM.
NOW WHAT WE THINK OF AS A FARM, YOU KNOW, THERE'S A CERTAIN ELEMENT OF ROMANTICISM THAT
WE HAVE TO THIS KIND OF MYTHICAL PAST.
SIMPLE LIFE, PASTORAL SETTING, GENTLEMAN FARMER, THAT SORT OF THING.
THAT'S THE IDEA.
A growing number of people like Kevin Summers in Amissville ((AM-iss-ville)), Virginia,
are returning to small-scale farming.
In order to feed the world, I think this is a better way.
It's a cleaner way.
It's a more humane way."
More Americans today want to know where their food comes from.
And they like the personal touch that Summers gives his hogs.
I can see the entire process unfold before my eyes and know that they had a good life
and were healthy and happy."
SO LARGE SCALE FARMS ARE EFFICIENT, THEY'RE MORE PROFITABLE.
WHY WOULD PEOPLE THEN WANT TO GO, SAY IN PORK PRODUCTION, WHY WOULD THEY WANT TO GO BACK
TO A SMALL-SCALE FARM?
WELL, THERE'S A LOT OF...A LOT OF THE THINGS THAT PEOPLE DON'T LIKE ABOUT THE LARGE SCALE,
WHEN YOU HAVE THAT MANY ANIMALS IN A SMALL SPACE, THEY CREATE A LOT OF POLLUTION.
YOU'VE GOT TO DEAL WITH THE WASTE SOMEHOW.
AND THERE'S...THE USE OF ANTIBIOTICS IS A CONCERN.
THERE'S ACTUALLY A FAIRLY STRONG ANIMAL RIGHTS MOVEMENT IN THIS COUNTRY THAT SEES SOME OF
THE PRACTICES AS INHUMANE.
AND, YOU KNOW, AS FAR AS THE SMALL SCALE FARMS, I THINK THE PEOPLE WHO GO INTO THAT KIND OF
FARMING FEEL A REAL PASSION FOR THE FOOD SYSTEM, FOR THE QUALITY OF THE FOOD.
I MEAN, THEY RAVE ABOUT THE FLAVOR, CHEFS RAVE ABOUT THE FLAVOR, PEOPLE WHO REALLY KNOW
WHAT PORK SHOULD TASTE LIKE ALWAYS GO FOR THE KINDS OF PIGS THAT ARE RAISED IN SMALL
SCALE FARMS, BECAUSE THEY EAT A MORE COMPLEX DIET.
IT REALLY DEPENDS ON WHAT YOU'RE GOING FOR.
CHINA HAS RECENTLY SAID THAT THEY'RE INTERESTED IN PURCHASING SMITHFIELD, WHICH IS THE LARGEST
U.S. PORK PRODUCER.
WHY WOULD THEY WANT TO DO THAT?
GETTING A COMPANY LIKE SMITHFIELD WOULD BE A REAL ASSET FOR THEM, BECAUSE SMITHFIELD
IS THE WORLD'S LARGEST PORK PRODUCER, SO THEY HAVE HUGE TECHNOLOGIES OF SCALE, OR ECONOMIES
OF SCALE, SO THEY CAN PRODUCE A LARGE AMOUNT FOR...INEXPENSIVELY.
THERE WAS A HEARING ON CAPITOL HILL THAT LOOKED AT THIS AND SAID...
THERE WAS A LOT OF SKEPTICISM FROM THE SENATORS AT THIS HEARING.
A LOT OF SKEPTICISM.
THERE ARE CONCERNS THAT THE CHINESE WILL DO, AS THEY HAVE DONE SUCCESSFULLY IN OTHER INDUSTRIES,
THEY WILL ADOPT THIS TECHNOLOGY AND EXPORT IT TO OUR LARGEST PORK CONSUMER, JAPAN, WHICH
IS OF COURSE RIGHT NEXT DOOR TO CHINA.
THIS IS POTENTIALLY A FOOD SECURITY ISSUE FOR THE U.S. WOULD CHINA BUY SMITHFIELD, AND
THEN EXPORT ALL OF SMITHFIELD'S PORK TO CHINA?
THEREBY RAISING THE PRICE OF PORK IN THE U.S. THERE ARE FOLKS WHO RAISE FOOD SAFETY CONCERNS.
THERE HAVE CERTAINLY BEEN PROBLEMS WITH FOOD SAFETY IN CHINA, AND HAVING A CHINESE COMPANY
IN CHARGE OF A U.S. COMPANY RAISES CONCERNS, ALTHOUGH, YOU KNOW, PEOPLE SAY THAT WELL,
THEY WOULD STILL BE SUBJECT TO ALL THE U.S. LAWS ON FOOD SAFETY.
IT'S SOMETHING THAT RAISES CONCERNS.
AND AGAIN, THAT WAS VOA'S AGRICULTURE REPORTER STEVE BARAGONA.
NOW, HONG KONG-BASED SHUANGHUI INTERNATIONAL'S $4.7 BILLION DOLLAR OFFER TO BUY SMITHFIELD
FOODS IS THE BIGGEST PROPOSED CHINESE TAKEOVER OF A U.S. COMPANY TO DATE.