(photo: Smithfield Foods CEO Larry Pope)

Since the world's largest pig meat processing company Smithfield Foods, Inc announced in May 2013 that the company would be sold to Shuanghui International Holdings, owner of China's largest meat processing business, for $7.1 billion. The merger of the two giant companies has attracted significant attention. This will be a deal that represents China's largest purchase of a U.S. company.  

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However, after the news was released, a coalition of food safety and farm groups is calling on federal regulators to halt the proposed sale of pork giant Smithfield Foods to the Chinese processor. The main reason for the objection is that many people are afraid the deal could pose threats to U.S. security interests, undermine food security here and threaten the safety of the U.S. food supply.

Yesterday, first public hearing about the deal was held. The Senate Agriculture Committee sits down with Larry Pope, CEO and president of Smithfield Foods, to talk about the company's $7.1 billion merger deal with Shuanghui International Holdings.

A staff from U.S. National Farmers Union expressed her concerns about the deal. Sam Paschal said: "Our Union represents about 20,000 U.S. farmers, and many of them have signed supplying contracts with Smithfield. If Shuanghui buys Smithfield, the farmers legal interests may be damaged. We wonder if the senators will raise these questions, as it may affect tens of thousands of U.S. pork farmers."

During the hearing, Smithfield Foods CEO Larry Pope sought to soothe concerns relating to Shuanghui's acquisition of his company. Pope told members of the Senate Agriculture Committee that the deal's approval wouldn't trigger Chinese pork imports into America. However, his assurances didn't satisfy the senators. Some senators questioned: "Despite Shuanghui promising keeping Smithfield's supplier contracts now, who can guarantee these contracts will be still valid after ten years?" Senators also emphasizes that food safety is an important part in national security.

National Farmers Union (NFU) President Roger Johnson issued a statement after the hearing, saying: "Smithfield already controls 15 per cent of domestic pork production and 26 per cent of pork processing. It is already the dominant player in the market. If this acquisition is finished, other American companies won't just be competing against Smithfield; they'll be competing with the Chinese government."

"Further dealings with the Smithfield acquisition must be scrutinized to the utmost level. Our nation's food security, economic power, competitive agricultural market, and technological advantages are threatened by this and future cross-border purchases of major agricultural companies."