What impact, if any, will the Chinese acquisition of the largest pork producer in the U.S. have on the price of a pork chop? ISU Livestock Economist, Lee Shultz, doesn’t expect a spike in consumer prices. He says the purchase of Smithfield makes a lot of sense to the Chinese conglomerate, given the demand for pork in that country.
Shultz states, “And they’ve seen the value in inquiring Smithfield relative to the potential exports that could help increase for China as well as potentially kind of easing some of their food safety concerns there in China.”
He says if it results in U.S. pork exports increasing, prices will rise, and producers will find ways to meet the demand.
The Smithfield purchase is impacting some states’ laws. Missouri, for example, has just agreed to lift a ban on foreign ownership of agricultural land and lawmakers there have put a one-percent cap on foreign ownership that is subject to approval by the Missouri Department of Agriculture. Iowa Prohibits foreign ownership of farm-land.
Iowa Radio Network
June 19, 2013