Smithfield Sells Out

stevrod · Joined: 22 Nov 2012 Posts: 7

Not sure how everyone feels about this, But I can not believe this is a good thing. But hey the Stock holders are Happy, and no American farmer will be harmed.
http://www.npr.org/blogs/thetwo-way/2013/05/29/187029237/smithfield-foods-to-be-sold-to-chinese-firm-for-4-72-billion

When are we going to wake up, now one of the premier agricultural products will be owned by foreign nationals with a growing population.
I think our pork prices will be going up, and availability will become scarce. Anyone bought Pecans lately, anyway if you think this is wrong take action.

[edited by SoEzzy]To reflect the policy on these forums![/edit]

thsmoker · BBQ Fan Joined: 05 Nov 2008 Posts: 322 Location: NC

Its sad. Good for them because the Communist Chinese have another 1.2 Trillion dollars to buy more.

AndrewT · Newbie Joined: 08 Jan 2013 Posts: 60

Wonder where they got all those dollars? Maybe have we been buying cheap goods from them for the last twenty years? Just a wild guess...

Geronimo · Posted: May 30 2013 Post subject:

Unfortunate for dang sure.. Twisted Evil

Just like diesel prices have remained extremely high (I got rid of my diesel truck for this reason) due to the autos (most cars in foreign countries including China are diesel).

Now the Chinese/Smithfiled will for sure sending the majority of their American produced products to China Shocked

with the remaining products (the lower quality) being sold to the Americans and a MUCH higher prices.
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YardFullOfOak · Posted: May 30 2013 Post subject:

SoEzzy · Posted: May 31 2013 Post subject:

There are still 30+ days for counter offers, or for other solutions, the company is valued at 7 bn and they are prepared to take a cash offer of 66% or so!

p.s. keep the politics out of the discussion, or I'll be forced to shut the thread down!

YHBW!
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stevrod · Joined: 22 Nov 2012 Posts: 7

"p.s. keep the politics out of the discussion, or I'll be forced to shut the thread down!"

Sorry, never meant this to be political. It is just a situation I never thought I would see in my lifetime, unfortunately my Kids will have to live with this. (They are in college for Agricultural careers)

Texman · Posted: May 31 2013 Post subject:

Smithfield has been on a negative stock watch off and on for years. Prior to this announcement stock was around $24, with sale price at $35+, nice profit.

Globalization has been one-sided starting with the U.K. with colonization; thereafter the US took the lead, now China. Chinese have made large land purchases in Africa for mining etc.

Our business livelihood is pork, from farm to fork.

Near 15 years ago Smithfield purchased a major interest in a pork plant in the State of Sonora MX owned by Jorge Mason. The immediate effect was that Smithfield was able to move off product through that business portal into Mexican markets. Additionally Smithfield had a cheap labor pool to produce export pork for the Pacific Rim.

China buys pork products we Americans do not normally eat. Ears, bung, uteri etc. They do purchase some primal cuts, but the most profitable are the offal items.

In countries like Mexico and China it is not what you know, but who you know that drives business and keeps your export containers from being rejected or held up at port. With the Smithfield – China sale the Chinese will more than likely exert control over who imports pork into China.

A question we ask is how will it affect our business and American consumers? Only time will tell.

As to your children Stevrod you might encourage them to purchase the Rosita Stone Chinese language course - it might make them more marketable in the job market. When Mexico opened in 1986 everyone was trying to learn Spanish, looks like now we will swing to Chinese.

Just for the record: Among a spate of foreign takeovers in the meat industry in recent years were Harim’s (Korea) acquisition of Seaford, Del.-based poultry processor Allen Family Foods and Omtron’s (Ukraine) purchase of assets of Georgetown, Del.-based poultry processor Townsends Inc. in 2011.

Geronimo · Posted: May 31 2013 Post subject:

When I had my BBQ catering business in WA state we were (I guess) spoiled by being able to more than not be able to purchase IBP pork products (mainly ribs).

When supply was tight (on IBP ribs), my supplier would get Smithfield brand ribs and I ALWAYS complained about the quality difference between Smithfield and IBP.

Smithfield was ALWAYS thinner, bits and pieces hanging off, smaller bones and overall just down right disgusting compared to IBP. AND at the same freakin' price per lb Evil or Very Mad

And once...I made the mistake of purchasing a Smithfield ham
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Texman · Posted: May 31 2013 Post subject:

Harry Nutczak · Posted: Jun 01 2013 Post subject:

If I remember correctly, Smithfield bought Dubuque packing a while back, maybe a decade or two ago.
They shut down the plant, and we lost a spectacular brand/style of ham for over a decade now (Fleur De Lis Brand)

Somehow, Hormel ended up with the name rights, and is now making and marketing the 'Fleur De Lis" brand ham.

The flavor is the same as I remember, but the shape is not that real flat prosciutto shape that I so desire.
They are way more lean on the interior, and much less outer fat on them now too. And the only choice now is boneless.
It's better than most commercial hams available out there, but it is just not the flat pressed ham that I loved to use.
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daddywoofdawg · Posted: Jun 02 2013 Post subject:

Now the Chinese/Smithfiled will for sure sending the majority of their American produced products to China with the remaining products (the lower quality) being sold to the Americans and a MUCH higher prices.

For those that live in wash and other apple producing states and I'm sure it's other products,Have you noticed you can't find a decent apple anymore.I talk with a grower and he said the problem is not with the grower he still grows great apples,It's just overseas they are willing to pay a lot more for the good apples so they get them,and we get the left overs.
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Geronimo · Posted: Jun 02 2013 Post subject:

YardFullOfOak · Posted: Jun 02 2013 Post subject: A perspective on the Smithfield deal

http://online.wsj.com/article/SB10001424127887324682204578517580703001580.html?mod=WSJ_hpp_LEFTTopStories

It explains quite well what makes Smithfield attractive.

Harry Nutczak · Posted: Jun 03 2013 Post subject:

Geronimo · Posted: Jun 03 2013 Post subject:

RodinBangkok · Posted: Jun 04 2013 Post subject:

Well I look at this type of sale as a complete lack of Americans ability to sell their know how abroad. Instead of selling this technology to others they simply sell out the entire company to the highest bidder, stupid move, but I'm sure profitable in the short term for someone.
I would be more concerned about the technology jobs that will be lost over the next years, not the goods produced going to Asia. You can count on the fact the future high paid jobs in this company will be paid in Yuan, with all the technology and expertise staying with the new owners. It won't be overnight, but slowly those stateside jobs will start to disappear, along with the knowledge.

As pointed out in the article is WSJ, its the technology and know how of mass production that this company is most interested in, and now have for a bargain price, a century of pork production knowledge sold for a fraction of what its worth. Give them 10 years and you'll be buying the next generation of pork producing technology from Asia.
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Harry Nutczak · Posted: Jun 04 2013 Post subject:

I'm wondering which Asian dialect that I need to brush up on.
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RodinBangkok · Posted: Jun 04 2013 Post subject: