N.C. Smithfield owns familiar retail brands that include Smithfield Premium, Gwaltney, John Morrell and Esskay Dinner. Murphy either is, or is close to being, a billionaire. Under the sales agreement, Murphy will get 10 million shares of Smithfield Foods stock. The announced purchase fueled growing concern over concentration in the nation's agriculture sector, concentration that could impact market opportunities for producers across the United States, said American Farm Bureau President Dean Kleckner. It also clearly illustrates how dire the economic situation is for smaller family farms.
Agriculture is a unique industry.
It requires someone with the experience and background to ensure anti-trust laws are not being violated and that opportunities for all farmers are protected. There is irony in the circumstances that led to the merger. Murphy's company was in a growth mode through a period when hog prices were sinking. If 10 cents per pound hog prices left small farmers bleeding, they caused an outfit like Murphy's to hemorrhage red ink. Mr. Kleckner is correct in observing that accelerating consolidation within sectors of the agriculture industry will have profound effects on markets.