Romania faces Smithfield's pork barrel practices
Polish NGOs urge development banks not to finance meat giant's expansion ======== Smithfield Foods, the notorious American meat producer giant, is strengthening its pork empire in Eastern Europe, announcing this week the purchase of Romanian meat processor Comtim Group and Polish Morliny. The Polish Green Network, an environmental group which has monitored and campaigned against Smithfield's outrageous practices in Poland, views this move as an indication of Smithfields's strategy to infiltrate Romania's huge internal market and also to benefit both from its proximity to the EU and Russia and its low environmental standards. Of particular concern is Smithfield's previous reliance on development finance to support its business in Poland. Two years after Smithfield took over Animex, Poland's biggest meat processor, the European Bank for Reconstruction and Development (EBRD) and other banks supported Animex with a USD 100 million loan. [1] "We are concerned that history could be repeated in Romania," said Robert Cyglicki of CEE Bankwatch Network. "The EBRD loan enabled Animex-Smithfield to expand its operations through the purchase of bankrupted livestock farms. Many severe social and environmental problems have arisen as a result. Polish green groups are concerned that similar so-called development money could again support a known polluter, this time in Romania. We urge the development banks not to provide any support for Smithfield's controversial business practices." The Comtim Group's capacity is estimated at approximately 200 000 hogs per year. Morliny is one of the best known brands in the Polish market, specialising in high quality, high price products. This week's double acquisition will strengthen Smithfield's position in the tough EU market. Yet Smithfield's top priority appears to be to wrap up potentially lucrative emerging eastern markets. Anna Roggenbuck, of Polish Green Network, said, "Since Smithfield announced it will not be establishing further new pig farms in Poland, it would come as no surprise if its Romanian investments expand beyond the Comtim Group. Bearing in mind the revelations in Poland that Smithfield's operations have violated Polish environmental law, the Polish Green Network advises Romanian citizens and environmentalists to be vigilant. We will continue to monitor Smithfield's farms as we know most of them continue to operate without integrated permission under the EU's Integrated Pollution Prevention and Control directive." Since Poland's entry into the European Union, Smithfield has been on the look out for a more "friendly" atmosphere for its operations where it can easily shift the costs of production onto the environment. With the recent introduction in Poland of a new tough law on fertilizers, Smithfield, a huge producer of manure, has been forced to look for new places where environmental standards are less robust. Smithfield's controversial practices in manure handling play a crucial role in guaranteeing profits for the company. Romania is at present the biggest contributor of nutrients to the Black Sea as its entire territory drains into the sea. Robert Cyglicki said, "Romania has not made environmental protection a top priority. It has many laws covering environmental protection, but the implementation of these regulations is far from satisfactory. Smithfield's entry into the Romanian market will jeopardise all the efforts to minimise the agricultural pollution of the Black Sea." In Romania seventy-five percent of the swine population is held in individual households, while only twenty-three percent of the animals are bred in large farms. Smithfield's established strategy is based mainly on monopolistic practices, combined with shifting the costs of industrial hog-raising onto both the environment and individual farmers. Anna Roggenbuck concluded, "As we've seen in Poland in recent years, it is likely that Smithfield's prices for meat will be less than individual hog-raisers' costs of production which will mean bankruptcy for local farmers. Unless industrial farming complies with national laws and operates with respect for the environment, unfair competition results with disastrous consequences for local economies and the environment." For more information, contact: Anna Roggenbuck Polish Green Network Tel: +48 91 489 42 33 Notes for editors: 1. Full background information on Smithfield's controversial activities in Poland is available at: http://www.bankwatch.org/issues/ebrd/animex/manimex.html Greig Aitken Media coordinator CEE Bankwatch Network Bratislavska 31 602 00 Brno Czech Republic Tel: +420-545 214 431, ext 19 ------------------------ Yahoo! Groups Sponsor --------------------~--> Make a clean sweep of pop-up ads. Yahoo! Companion Toolbar. Now with Pop-Up Blocker. Get it for free! http://us.click.yahoo.com/L5YrjA/eSIIAA/yQLSAA/RR.olB/TM --------------------------------------------------------------------~-> EuroAtlantic Club: http://www.europe.org.ro/euroatlantic_club/ *** Birou de traduceri autorizate. Oana Gheorghiu - tel/fax: 252.8681 / [EMAIL PROTECTED] Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/romania_eu_list/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
