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[quote user="schlimm"] China and Chinese companies have a lot of cash looking to be invested.  seems to me someone there thought Smithfield was a good investment.  Whether the production is exported or stays here is irrelevant.  [/quote] I don’t think it is an irrelevant question to ask whether production stays here or is exported.   When I read about pork production in China, it sounds like they are facing a major problem in meeting their domestic demand.  So having extra cash to look for foreign investment is one thing, but it sounds like this deal is as much about seeking to increase the pork supply in China as it is to find a place to invest their money. So assuming that Smithfield’s market is suddenly doubled or tripled to meet underserved demand in China, will Smithfield expand accordingly to serve it, or will they simply redirect their existing production?  If they increase their production, that increases the net transportation need.  That too might affect rail in a way that differs from simply redirecting existing production to serve the Chinese market.
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