Re:Smithfield will be owned by a Chinese company
I too can't really get up in arms over this. I can't speak specifically about Smithfield, but most of the meatpacking industry has displaced American workers for lower waged immigrants that they've even housed in some cases to attract them at wages that couldn't otherwise support a family. I have no idea about Smithfield, but the deal with the chinese makes for some interesting questions. First and foremost, why do they want a meat processor and physical plant in the states? China needs pork, and specifically pork belly. Why aren't they going after pig farminging/pork production in the states? Smithfield is a processor. Unless they also have a large vested interest in farming, there's really nothing a processor here in the states has to their home market advantage even if they took the plant down lock, stock,and barrel and shipped it over there. Nothing there that can't be duplicated in China and the home market has little interest in the types of products market here. Their insatiable demand for pork has driven market prices up already and one of the prime reasons we're paying over $6 for a package of bacon. Buying Smithfield makes as much sense as an italian or spanish company buying Oscar-Mayer from Kraft unless the buyers are truly interested in diversifying their portfolio and looking to invest outside of their country for economic reasons. Witness the buying spree in totally unrelated markets that some of the chinese electronics and high tech companies are making fearing an implosion of their primary product market. Lenovo last I heard is investing heavily in real estate. Should tell you something about their vision for the future computer market. It doesn't take a genius to realize that china's roll is coming to an end with higher labor prices, inshoring, lack of trust by foreign companies, our economy's slowdown and now Europe's. Internally lots of unemployment and infrastructure going to waste or unfinished. They're pretty spread thin with a global economy slowing down, their profitable companies are probably looking to invest elsewhere before their economy tanks.