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Honored Advisor

Re: We're all Chinese now....

As a grower for Smithfield, one concern I have is not so much an actual erosion of food safety, but the perception of it. Also, there could be less loyalty to brands that have been sold out overseas.
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Veteran Advisor

Re: We're all Chinese now....

Kaye  -  You bring up interesting points ---

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Advisor

Re: We're all Chinese now....

That small local plant that you and I are day dreaming about?  Most likely, it gets watched like a hawk.  All the while:

 

http://www.motherjones.com/tom-philpott/2013/05/usda-inspector-general-rebukes-hog-slaughter-conditi...

 

I wouldn't doubt that inspector write-ups in this Brave New World that we could see coming with this purchase and most likely others in other industries could very likely be seen as violations of trade agreements.

 

 

 

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Honored Advisor

Re: We're all Chinese now....

Thank you...there are others, but those two popped up as my primary concerns. The company has some priceless brand recognition and the loyalty that accompanies that asset. I guess it equates to what one would overall consider " good will". A Smithfield ham is a cultural treasure, known virtually worldwide....

As for the " Shineway" clenbuterol scandal, the thought that our integrator would make such a mistake is unthinkable to me. I know the processes and protocols we have to follow, and have friends who work on company-owned farms, and what they are required to do. Animal welfare, food safety, environmental stewardship...we have made huge strides in all of these areas and more. I just do not see the independent subsidiary status as undermining that headway.

Here is a third one that probably none of you have thought about: The proprietary genetics of SPG, are the end result of decades of selection and multiplication. I haven't head anyone say what, if any, role this part of the company will play in the future. These are some awesome lean pigs....

The Chinese have an infatuation/ passion for American genuine brands and healthful food products. Organic baby food is HUGE there, for instance. The melamine and clenbuterol taints in their own food system, among other issues we probably never hear about, cause Chinese who can afford it to buy American.

We view this as the solidification of a marketing strategy, in one respect. I saw this as a possibility when the company sold some shares over there a few years back. Think about how the money of our nation can be further funneled off...by selling absolute necessities, raised here, back to us.

His has the potential for harm, in the sense of being known by the company you keep. .rarely does the lesser reputation in a relationship get elevated, as much as the better one gets lowered. If this deal is nixed by the government, the blowback could set us way back...and things were going so well here lately.

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Highlighted
Veteran Advisor

Re: We're all Chinese now....

 '' Debt to asset ''  was overwhelmed by medical expenses  - I think your on to something ---

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Honored Advisor

Re: We're all Chinese now....

Unless they have changed recently, the company had self-insured for many aspects, including employee health. That could be a bite in the butt.
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