Is the US About to Become One Big Factory Farm for China?
May 29, 2013 4:29 PM
The small number of companies that dominate global meat production is about to get smaller. The Chinese corporation Shuanghui International, already the majority shareholder of China’s largest meat producer, has just bought US giant Smithfield, the globe’s largest hog producer and pork packer, in a $4.7 billion cash deal. (It still has to get past Smithfield’s shareholders and the US Treasury Department’s Committee on Foreign Investment, which reviews takeovers of US companies.)
Now, I hope this merger of titans doesn’t provoke a xenophobic reaction. Shuanghui has strong ties to China’s central government, but it also counts Goldman Sachs among its major shareholders. And the US meat industry is already quite globalized. Back in 2009, a Brazilian giant called JBS had already barreled into the US market, and now holds huge positions in beef, pork, and chicken processing here. And true, as China has ramped up its food production—and rapidly reshaped hog production on the industrial US model—it has produced more than it share of food safety scandals, including recent ones involving hogs.
But as I have pointed out, the US pork industry is no prize either—it pollutes water as a matter of course, hollows out the rural areas on which it alights, relies heavily on routine antibiotic use, recently inspired a government watchdog group to lament „egregious“ violations of food safety and animal welfare code in slaughterhouses, and uh, has an explosive manure foam problem.
So forget about where HQ is for the vast conglomerate that ultimately profits from running Smithfield’s factory-scale hog farms and slaughterhouses. The real question is: What does this deal telling us about the global food system and the future of food? Reuters offers a hint:
The thrust of the deal is to send the U.S. made pork to China, a factor that one person familiar with the matter said would help during Shuanghui’s CFIUS [Committee on Foreign Investment] review.
If Reuters is right that deal’s purpose is to grease the wheels of trade carrying US hogs to China and its enormous domestic pork market, then we’re looking at the further expansion of factory-scale swine farming here in the US: all of the festering troubles I listed above, intensified. For Smithfield itself, the deal is savvy, because Americans are eating less meat. In order to maintain endless profit growth, the company needs to conquer markets where per capita meat consumption is growing fast, and the China market itself represents the globe’s biggest prize in that regard.
As for China, the Institute for Agriculture and Trade Policy showed in a blockbuster 2011 report, the central government strived for years for self-sufficiency in pork, even as demand for it exploded, by rapidly industrializing production along the model pioneered by Smithfield. By essentially buying Smithfield, the government may be throwing in the towel—saying, essentially, let’s just offshore our hog production, or at least a huge part of it, to the US.
In an ironic twist, China appears to be taking advantage of lax environmental and labor standards in the US to supply its citizens with something it can’t get enough of. Industrial pork: the iPhone’s culinary mirror Image.
Ever since May, when a Chinese company agreed to buy US pork giant Smithfield, reportedly with an eye toward ramping up US pork imports to China, I’ve been looking into the simultaneously impressive and vexed state of China’s food production system. In short, I’ve found that in the process of emerging as the globe’s manufacturing center—the place that provides us with everything from the simplest of brooms to the smartest of phones—China has severely damaged its land and water resources, compromising its ability to increase food production even as its economy thunders along (though it’s been a bit less thunderous lately), its population grows (albeit slowly), and its people gain wealth, move up the food chain, and demand ever-more meat.
Now, none of that should detract from the food miracle that China has enacted since it began its transformation into an industrial powerhouse in the late 1970s. This 2013 report from the United Nation’s Food and Agriculture Organization and the Organization for Economic Co-operation and Development (OECD) brims with data on this feat. The nation slashed its hunger rate—from 20 percent of its population in 1990 to 12 percent today —by quietly turbocharging its farms. China’s total farm output, a broad measure of food churned out, has tripled since 1978. The ramp-up in livestock production in particular is even more dizzying—it rose by a factor of five. Overall, China’s food system represents a magnificent achievement: It feeds nearly a quarter of the globe’s people on just 7 percent of its arable land.
- by Kristina Chew
- January 23, 2013
- 4:00 pm
It is terrible enough that horse meat has been found in burgers in the UK. Two slaughterhouse workers were recently fired from the Red Lion Abattoir near Nantwich, Cheshire, after animal welfare advocates from Hillside Animal Sanctuary released an undercover video showing extreme cruelty to horses.
The video footage is sickening, showing horses being illegally stunned in groups of up to three. Under the U.K.’s Welfare of Animals (Slaughter or Killing) Regulations 1995, horses can only be in the stunning pen individually, as the Royal Society for the Prevention of Cruelty to Animals says in the Daily Mail. As Roly Owers, CEO of World Horse Welfare, says:
Horses are intelligent animals. When…
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6 Mind-Boggling Facts About Farms in China
China’s industrial behemoth hasn’t just fouled up the vast http://www.motherjones.com/tom-philpott/2013/08/why-china-wants-us-grown-pork-chops-part-2-land-edition
please, read whole article there!
By Tom Philpott | Wed Aug. 21, 2013 3:00 AM PDT
Ever since May, when a state-controlled Chinese company agreed to buy US pork giant Smithfield , reportedly with an eye toward ramping up US pork imports to China, I’ve been looking into the simultaneously impressive and vexed state of China’s food production system. In short, I’ve found that in the process of emerging as the globe’s manufacturing center—the place that provides us with everything from the simplest of brooms to the smartest of phones—China has severely damaged its land and water resources, compromising its ability to increase food production even as its economy thunders along, its population grows (albeit slowly), and its people gain wealth, move up the food chain, and demand ever-more meat.
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