Thursday, May 7, 2009

Hog Giant Smithfield Transforms Eastern Europe

clipped from www.nytimes.com
Smithfield Foods.
Almost unnoticed by the rest of the Continent, the agribusiness giant has moved into Eastern Europe with the force of a factory engine, assembling networks of farms, breeding pigs on the fast track, and slaughtering them for every bit of meat and muscle that can be squeezed into a sausage.
The upheaval in the hog farm belts of Poland and Romania, the two largest E.U. members in Eastern Europe, ranks among the Continent’s biggest agricultural transformations.
Smithfield’s global approach is clear
Smithfield enlisted politicians in Poland and Romania, tapped into hefty European Union farm subsidies and fended off local opposition groups to create a conglomerate of feed mills, slaughterhouses and climate-controlled barns housing thousands of hogs
It moved with such speed that sometimes it failed to secure environmental permits or inform the authorities about pig deaths
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The Virginia-based pork giant has squashed small-scale hog farming in Romania and Poland, just as it did in the United States in the 1990s.

Smithfield says pork prices dropped by about one-fifth, saving consumers about $29 per year. While this is good news for us, farmers are run out of business forced to seek employment elsewhere and the new Concentrated Animal Feeding Operations (CAFOs) are creating vast open disease ridden cesspools. Unbearable stenches, and wrecked communities.

They used high-level cronyism to move through the maze of the Romanian political system.

This is a prime example of the poisonous downside of corporate globalization.

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