eu ope Fact Sheet

A Factory Farm Force

U.S. Multinational Smithfield Moves into Europe

F rom its humble beginnings as a father-and-son ham-curing operation in rural

America more than 70 years ago, Smithfield Foods has grown into a 7.75 billion
Euro-per-year, multinational meat conglomerate with operations in 13 countries on
three continents. Of late, Virginia-based Smithfield has been expanding aggressively
into Eastern Europe, where its operations have stirred controversy because of their
threats to local farming economies, the environment and animal welfare.
Smithfield’s “stable to the table” philosophy is known as Poland
vertical integration — controlling every aspect of meat Acquired a controlling interest in Animex, one of Poland’s
production, from breeding and feeding through slaughter, largest meat and poultry processors, for US $51.2 million
processing and packaging. Buying out struggling companies (1999). Established Polish-run front company Prima Foods
is also a key strategy, with the company admitting that “op- (2001), without directly breaking a Polish law that restricts
portunistic acquisitions...are fundamentally part of how we farm purchases by foreigners. This opened the door to the
do business.”1 purchase of struggling hog farms and contracts with small
farmers — 1,600 as of 2004. Fused Animex with Polish meat
By 1999, following a string of acquisitions and mergers, company Morliny SA (2004).
Smithfield had become the largest pork company in the Smithfield’s operations in Poland are divided among:
United States. At the same time, Smithfield faced record
fines stemming from environmental violations. Due to bans • Pork and beef, through Agryf SA, ZM Mazury, Constar
and restrictions on industrial-scale livestock operations SA, Morliny, Krakus, Animex Agri (three farms with
in several U.S. states, Smithfield began looking across the 32,000 hogs) and Animex Wielkopolska (four farms
Atlantic for new business prospects in the late 1990s. It has with 23,000 hogs).
since become the largest pork producer in the world. Its
European operations and deals include: • Turkey, chicken and geese, through Ekodrob SA,
Opolskie Zaklady Drobiarskie SA, Suwalskie Zaklady
Drobiarskie LLC and Animex Poludnie LLC.

• Animal feed, through Contipasz SA and Animex Pasze

LLC.

Romania
Acquired meat processors Agrotovis and Comtim, both
based in the Timisoara region, and meat distributor
Agroalim Distribution (2004). Smithfield now owns 25 pig
factory farms in western Romania.2

Spain
Announced a planned merger of its Western European op-
eration, Groupe Smithfield Holdings, with Spain’s processed
meat leader Campofrio Alimentacion SA (30 June 2008).
The merger would form the largest processed meat company
in Europe, with annual sales of more than 4.5 billion Euro;
a leading market share in Belgium, France, Portugal and
Spain; and a strong presence in the Netherlands, Romania
and Russia. The new entity, in which Smithfield will own a
36 percent stake, would be based in Madrid and continue to
be known as Campofrio.
France
Purchased pork processor Societe Bretonne de Salaisons
(1998), processed meat producer Societe Financiere de Ges-
tion et de Participation (1999) and cold meat producer Jean
Caby (2004).
UK
Merged fresh meat company Norwich Food and processor
Ridpath Pek into Smithfield Foods Ltd. (2004).
Elsewhere
Other worldwide acquisitions include a 15,000-head pig
farm in Matto Grosso, Brazil; factory farms in Sonora and
Vera Cruz, Mexico; and a joint venture with Artal Holland
BV that formed Maverick Food Co. Ltd. in China’s Guang-
dong Province.
Problematic Politics, Pollution and
Production
Smithfield’s political power in Eastern Europe is undeni-
able. In 2001, Smithfield’s political allies were able to weaken
Poland’s Law on Waste by reclassifying liquid pig manure
from waste to an agricultural product. Of Romanian officials,
a Smithfield executive stated: “From the very beginning, we
have benefited from the unconditional support and encour-
agement of the Romanian government.”3
In Eastern Europe, the company sidestepped EU environ-
mental laws in Poland and Romania during the EU accession
transition period, essentially allowing the company to pollute
as a heavy industry.4 Smithfield’s pollution is extensively dam-
aging to the ecosystem in northern Poland, according to the
Helsinki Commission. Overapplying manure to fields is harm-
ing water systems connected to the Baltic Sea, and ammonia
and nitrogen waste is contaminating the soil.5 In the Polish
town of Byszkowo, residents developed rashes and eye infec-
tions after Smithfield’s waste lagoon overflowed and polluted
two lakes.5
Smithfield’s animal health and welfare practices also fall
short. Pigs normally live in crowded facilities with poor venti-
lation, no daylight and little or no space to turn around, mak-
ing them prone to injuries and infections. In Wieckowice in
2002, Smithfield overstocked hastily prepared storage build-
ings with pigs, which died by the hundreds. Their carcasses
lay in a dumpster before being hauled away, producing odors
that sickened schoolchildren. Children who swam in a lake
containing Smithfield’s pig manure developed eye infections.7
In summer 2007, swine fever struck Smithfield farms in Ro-
mania, and once again carcasses lay for days before they were
hauled away. The farms did not have proper animal health
or environmental certificates, prompting their closing. About
39,000 pigs from farms throughout the region had to be pre-
emptively killed because the disease is highly infectious.8
Poor sanitation practices came to light in April 2005 when
a Polish television crew discovered workers at a Smithfield-
run Constar plant in Starachowice were “reviving” old meat
by scraping mold off sausages and other tactics. The meat
was sent back to stores with new expiration dates. The plant
was closed, all Constar meat products were pulled from store
shelves and Polish officials launched an investigation.
Overall, Smithfield’s low production costs are being exter-
nalized, taking a toll on local economies and the environ-
ment. The stench from farms affects tourism in northern
Poland’s pristine “Green Lungs” region. People living near
Smithfield’s farms must deal with foul odors, headaches, dis-
comfort and falling property values. Family and community-
based farms unable to compete with Smithfield’s massive
production volumes are being driven toward bankruptcy.
Smithfield’s farms are the recurring target of farmer and
community protests in Poland. Family farmers often blame
Smithfield for falling pork prices and picket company facili-
ties. Resident opposition groups in some cases have been
able to stop construction of new factory farms. In June 2003,
residents of the Goldap area in northeast Poland stopped
Smithfield from building five additional farms of more than
4,000 pigs each. With three Smithfield facilities already in
their community, Goldap residents feared more farms would
pose more environmental and economic threats.9
Endnotes
1
Davis, Michael. “Smithfield says acquisitions need nurturing not gutting,” ,
15 May 2004.
2
Bota, Dragos. “Swine Fever Hits Romanian Farm,” Associated Press, 7
August 2007.
3
“Prime Minister Tariceanu meets with Richard J.M. Poulson, Executive
Vice President of Smithfield Foods, Inc.” Press Release, Government of
Romania, 18 January 2006.
4
Garbacz, Marek. “W uscisku agrokorporacji,” , 19 July 2006.
5
“Assess the environmental impact of the industrial pig farms rules.” Press
Release, Clean Baltic Coalition, 3 March 2004.
6
Tietz, Jeff. “Boss Hog,” , 14 December 2006.
7
Hundley, Tom. “Village in Poland Clashes with U.S. Pork Giant,” , 7 Febru-
ary 2005.
8
“Smithfield Foods Confirms Classical Swine Fever in Romania,” Press
Release, Smithfield Foods, 8 August 2007.
9
“Protesty wygryzly swnie,” Pierwszy Portal Rolny, 12 June 2003.
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