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[quote user="Convicted One"] [quote user="Bucyrus"]while other U.S. producers take up the slack and fill in the missing U.S. production from Smithfield. [/quote] Doubtlessly this will be the true end result. I've read this thread for some time now, and I cannot see how those who claim this development will result in cheaper pork for american tables, can take themselves seriously. How does the disappearance of excess supply customarily affect the marketplace? What effect has the rise in Chinese demand for petroleum products had on the price we pay at the pump? What reasonable expectation can someone have that the end result for pork will be any different than it has been for gasoline? Smithfield's competitors will surely fill the void left in the American market by Smitfield's exports to China, but will do so at a higher price, thanks to less domestic competition. <div style="clear:both;"></div> [/quote] Well there is the general assumption that Chinese production is more cost competitive, and so it results in the lowest price.  However, that assumes Chinese labor and Chinese regulations in China.  I don’t see how that advantage can apply to the Chinese owned Smithfield operation in the U.S. And you are right that diversion of U.S. pork production to China will reduce the U.S. supply and raise the price.  But what would you say to those who believe that Shanghui will sell to the highest priced market first, with only the excess production going to the lower priced Chinese market?  Under that model, production and price for the U.S. pork market should remain the same.
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