Dive Summary:
- China's interest in U.S. pork and the $4.7 billion acquisition of Virginia-based Smithfield foods by Shuanghui International has some U.S. senators voicing concerns about food safety and other aspects of the deal.
- Iowa Senator Charles Grassley (R) says he is opposed to the effects vertical integration by food companies has on farmers and consumers, though the deal could potentially increase exports to China and help offset the 4% decline in U.S. pork consumption.
- Additionally, Bloomberg reports that Michigan Senator Debbie Stabenow (D)--who chairs the Agriculture, Nutrition and Forestry Committee--expressed concerns about China and Shuanghui's "troubling track record" on food safety in a statement released Thursday
From the article:
... "I haven't made up my mind about the goodness or the badness" of the deal, Grassley told reporters this week. He has sent a letter asking the Department of Justice "to make sure it does what the law requires them to do, thoroughly examine the deal to make sure that it's not anti-competitive."
Grassley has resisted moves by companies like Smithfield to own hogs as well as processing plants, a business strategy known as vertical integration. ...
