Smithfield wins bid for Farmland Industries Pork Division
Originally from: Burkie
Just announced yesterday is the following news:
Richmond, Va (AP) – Pork processing giant Smithfield Foods Inc. said Monday it won the bidding in an auction for bankrupt Farmland Industries Inc.'s pork businsess.
As part of the agreement Smithfield will pay $367.4 million in cash for almost all the assets for the Kansas City, Mo. company's pork division, Farmland Foods. It will also assume $90 million in pension obligations, boosting the combined value to $457.4 million.
Smithfielf rival Cargill Inc. of Minnetonka, Minn., earlier said it would pay $385 million for Farmland Foods, beating Smithfield's initial offer of $363.5 million. During Sunday's auction, it essentially matched but would not top Smithfield's final bid, said Mark Klein, a Cargill spokesman said. "We had to set out limits," he said.
"Obviously, we are disappointed that we did not prevail in the auction," said Bull Buckner, president of Excel Corp., Cargill's meat processing industry.
Originally from: Burkie
Dear Friends: Some of you have asked why I am still in this mess. I only had one initial goal....to do what I could to prevent FAD's Foreign Animal Diseases like FMD from striking the soils of the USA.
I'd like to go to my grave knowing I did actually have a hand in helping prevent that from happening, so far.
Then it started becoming personal. I think I "bonded" to this and the other Smartgroups that posted thousands of messages to each other for nearly three years now. You all got to be like a big "family." and yes, we've lost some of the Best Contributors already, God Bless'em.
Ok...Burkie...get with it and tell us what's on you're trying to share....so I will.
I grew up raising livestock. I went with my Dad to the Bank to get loans. I scooped grain to feed them...silage, too...and scopped poop after they ate it. We raised purebred livestock. Know that business, too. And it was fun to win a show...get a "premium" price for a boar or gilt or bull calf. Mission accomplished! Success! Paper-clippings and ribbons.
Wanted to be a vet. Was good at keeping my animals healthy.
Read every farm magazine and periodical I could. Hogs were Beautiful...said my most admired person, Mr. Roy Keppy, who won the Chicago show with his hogs year in and year out in the 60's. Oh, to know him! And the Pork Queens were beautiful!
Unfortunately, my high school counselor didn't realize I needed to know such things as Physics, and Trigonometry to get admitted to vet school....and when it came time to go to college, I was rather inadequately prepared for such courses. But shifted gears and got involved with meats, meat judging, buying and selling. Loved it...got good grades and made many friends in the hog and cattle feeding business. Got a job with the Premier Meat Packing Business at the time, Oscar Mayer and Co. They put me in the "heart of hog" country....East Iowa and yes, I finally got to meet Mr. Keppy...and a lot of really swell people who raised both hogs and cattle.....they were on every farm....and evryone lived, breathed and died livestock. We all worked hard to improve genetics...and performance and efficiency...and fight disease, yes, there was "bio-security" back in those days, too. Some producers were a lot more particular about things like that, than others.
Well, then came changes in the meat packing industry. Grade and Yield, Futures Contracting...to name a couple. Little did I know that such organizations like Smithfield was beginning to make it's moves.
Now then, what's left of all this? Not much!
The Ruthless Rape of independent owners raising livestock has occurred. There are only huge producers left. The days of the Farm Family pulling together and helping each other with livestock on their farms are just about a thing of the past.
Buyers aren't needed other than to operate a computer.
No on-farm visits...no coffee with friends. It's history.
Thanks to this man's attitude: Mr. Joseph Luter III
http://www.nationalhogfarmer.com/ar/farming_straight_talk_smithfields/index.htm
I hope you all take time to read this article...an interview done in May, 2000. Before FMD outbreaks. And also read the latest acquisition Smithfield has just gotten accomplished, this past weekend....Farmland Foods Pork Division.
This is about the Rape of the Livestock Industry done by a few back-patting individuals who have worked together to place themselves in key postions to now be yours' and my suppliers of Beef and Pork.
Their next steps? We will all be slaves to the price of the meat we want to buy.
No wonder there is such a huge push for Free Trade....here's one of the pushers.
Burkie in Kansas
Originally from: Farmtalking
Thanks Gary!
I've read your message and the article/interview with Luter of Smithfield; both very interesting.
However, I have a few observations to make.
Like so many others, I had taken little interest in where or how our food was produced until the FMD outbreak of 2001. This in spite of the fact that members of my own family were farmers and for most of my life I've lived in the countryside, on or near farms.
Of course I know that the world's human population has increased and many species of animal and plants too, in order to provide us with food.
I have learnt, for instance that the UK is not self sufficient in wheat, nor has it been since before WWII. We have to import wheat for our bread.
The same applies to chicken, we do not produce enough ourselves to supply the demand and huge quantities are imported.
I also know that the animals reared in this country were of excellent quality and we exported livestock as foundation breeding stock to many parts of the world during the last century. Beef cattle, pigs and sheep were sent to South America, the USA, Australia, Canada and New Zealand for instance.
Those countries were able to produce vast quantities, which other countries and ourselves imported as required.
There is no doubt that huge changes have occurred everywhere, including in the UK, during the last century. Having been a producer and manufacturer of goods since the industrial revolution, we are now mainly supplying services and have to import both manufactured goods and food.
Looking at this from a wide perspective it seems to be an evolutionary process that makes sense in much the same way as the traditional family structure used to make sense. Dad went out to work and Mum stayed at home and cared for the family. However, that too has evolved and changed.
Both have and are causing problems, but one thing is certain, we can't turn the clock back to how things used to be. We have to face the problems and try to solve them.
We complain because some have grabbed the opportunities and like Luter with Smithfield, have been prepared to take the risks (i.e.: borrow the money) and gone ahead and established a successful business that supplies what the market demands. The downside of this is the failure of the small producer who could not compete.
Exactly the same has happened in our shopping centres. Fifty years ago our towns were filled with small family-owned shops supplying a variety of goods. Huge super stores that do the same has now replaced them and we the consumers use them.
It is tempting to remember what we think of as 'the good old days' and wish for their return but we know it won't happen. If the world is to be supplied with food and goods both as efficiently and economically as possible, companies like Smithfield are going to be formed and expand to supply us.
Our concerns cannot be their destruction but making sure that the methods they use are humane, of the very best practise and that food is fairly distributed among humanity worldwide.
At the same time we have to try to improve vaccines for FMD/TB etc, and discover the truth about such diseases as BSE/Scrapie etc and the benefits or not of GM crops.
I am very fortunate to still be able to live on a family owned farm where the animals are well cared for and the land is still farmed in a fairly traditional manner. However, it would be very naive of me to imagine that both the farm and I will continue to live in this way forever.
Changes will come and probably sooner than we expect or perhaps desire, but we have to adjust to them and work to ensure that the changes will benefit us all, animals, crops and human beings if any of us are to survive a species!
Originally from: coleen
I was listening to a programme on radio 4 some weeks ago – about the Italian 'family' business. It would seem that 'family' business's in Italy are encouraged and nurtured. They are not called 'small business enterprise's as they are here – but they are just what the name suggests 'family businesses'. The next generation are encouraged to go into the business by the family – and by the Gov of the day. Some of these business's have been going for generations. They in the main, the staple bread and butter of Italy's economy. I was struck how two Countries could view what is basically the same way of operating, SO differently.
Why I wonder should it be viewed so differently in Italy then here in the UK. Are we that dissimilar? Both have large cities and towns, both have a rural economy, tourism, a good standard of living – so why cannot what works for one – work for both? Does it just come down to the support of Governments then?
Coleen
Originally from: Farmtalking
Hi Coleen!
I think it has something to do with the fact that Italy is a much larger country than the UK with a relatively smaller population and it's economy, especially agriculture, is still fairly traditional in many respects.
The came can be said of some other EU countries and third world too, of course.
Nevertheless, change will come to them too as their populations grow and new technology is adopted.
Remember, much of out pig industry has transferred to Poland, which has and is causing problems for many many of the traditional rural population there.
Land is bought up or leased by large companies and the small farmer and rural industries go out of business. The rural population moves to the cities to try and find work. Some succeed and some don't.
Like it or not huge changes are occurring. Just look at how many call centres have relocated to India which now provides huge chunks of that service industry for us!
Originally from: coleen
Hi Jane
I had to smile at the report of call centres moving to India. Did you see what they get them to read and watch – so they can be 'typically English'. Eastenders, the sun newspaper, football to name but a few!! Is that how we as a Country are perceived? I expect that is what the majority do watch and read thought, isn't i? I find it annoying that those of us who march to a different tune are being ignored.
NO, none of us can halt progress we either go with the flow or get left behind. Sad really, as not all progress is for the better. Not for us, and certainly were animals are concerned in terms of bigger and faster growth and output.
It is like which came first, the chicken or the egg?. We seemed to have ourpriced ourselves in the wages market – but then we have to earn a high wage in order to pay for what things cost here. Housing, being one expensive item today. So whilst relocating to India is by far cheaper for companies (did I hear that the wages are a tenth of here) it does nothing for the UK economy.
Coleen
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