Friday, October 11, 2013

Elimination Of Farmland Jobs Would Seriously Impact Area Economy


Most readers of the Dorchester Times are likely aware that Chinese meat processor Shuanghui International Holdings Ltd. this past spring purchased Smithfield Foods Inc. for about $4.72 billion.  The transaction has real implications for our area economy since Smithfield owns the Farmland Foods facility in Crete, which currently employs nearly 2,000 workers.

Smithfield CEO Larry Pope said in a May 2013 conference call: "This is not a strategy to import Chinese pork into the United States ... this is exporting America to the world."

But will the sale of Smithfield to the Chinese also mean America is exporting more of its manufacturing jobs overseas?

The Dorchester Times has heard, from multiple individuals in our area, that Shuanghui Holdings may eliminate at least half of the meat processing jobs in Crete -- bypassing local workers, opting instead to ship the frozen carcasses to China and do most of the post-slaughter finishing there.  Such a move would also eliminate some or most of the need for the cold storage facilities just to the north of the Farmland facility.

The Times has been unable to confirm whether the speculations we've heard are true.  As far as we know, the sale has not yet been finalized by federal regulators.  But if a majority of jobs at the Crete plant are cut, it will have a ripple effect on the Saline County economy -- impacting everything from the county's property tax base, to labor availability, to housing values and rental rates in the Crete/Wilber/Dorchester area, to the viability of retail and restaurants.

This is one development that's worth watching.

2 comments:

  1. We, the Consumer, allow things like this to happen. We continure to purchase products that are made by companies located overseas.

    Will Farmland be operating in Crete a couple of years from now? We will see, won't we?

    Personally, I will not purchase any Smithfield product from now on. Period.

    As for as CEO Larry Pope saying..."this is exporting American to the world...."
    Larry, you can't put lipstick on a pig....

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  2. I agree with David, but I'll bet it's not for the same reasons. He's right that it is the American consumer who allows things like this to happen. In this case of Farmland, it's primarily due to:

    1.) Change of the American diet. I'm in my early 30s. I never eat red meat or pork. Most of my friends follow the same eating habits. Nothing against beef or piggy, but they just don't appeal like they did to my parents or grandparents.

    2.) Zoning regulations. When fewer and fewer people raise livestock, livestock operations get bigger and bigger. Most people in the country whine, pout and throw a tantrum when a hog producer tries to get bigger or expand to a new site. And 95% of those throwing a hissy are farmers who don't want the aroma encroaching their country air. Farmers take most of the blame for driving the hog industry away.

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