August 29, 2007

Romania discovers serious lapses in Smithfield's hog farms

Romanian authorities have discovered serious lapses in Smithfield's hog farms in Romania, after two outbreaks of swine fever were declared in the country, both from the company's farms.

Smithfield, the largest pork processor in the US, owns more than 30 farms in Romania. The company raises 400,000 pigs in these farms and planned to invest US$1 billion in the country.

Two of the company's farms in Igris and Cenei in the country reported the outbreaks. Zoltan Nagy, president of the National Agency for Environmental Protection, said the Igris farm 'had been opened abusively, without an environmental authorisation, and was overpopulated, keeping double the allowed number of pigs.'

An investigation conducted by the National Sanitary-Veterinary Authority, whose results were made public Aug. 8, revealed that, out of the 25 farms Smithfield owns in Timis county, only 11 had received an authorisation to operate.

Smithfield entered Romania in 2004 in the belief that it would become Europe's leading food producer. Michael Cole, vice-president of Smithfield Inc said at the time it would create the leading pork company in Romania and prepare it to be a major player in the European market when Romania joins the EU. The same year, swine products from the country were banned due to the discovery of swine diseases. The ban was not lifted early this year as the EU judged that disease occurrences were still common in the country.

Smithfield's August outbreaks were particularly vexing as Romanian officials had announced successful eradication of the disease and called for new negotiations with the EU for to lift restrictions in July.

Romanian authorities estimate the country loses around EUR 200 million yearly because of the ban.

Polish green groups have lambasted the company, saying that Smithfield's operations in Poland have similarly gave scant regard to Polish environmental laws and claimed the farms continue to violate the EU Integrated Pollution Prevention and Control Directive.' Critics also cite the company's poor environmental record, where it was fined millions in the US for violated the Clean Water Act in 1997.

Smithfield however, said that since the country has suffered 160 such outbreaks since the beginning of the year, the company could hardly be held accountable for the EU's prevailing ban on Romanian pork.