U.S. COMPANY, BUT NOW, A CHINESE COMPANY WANTS TO BUY IT. LAWMAKERS HERE IN WASHINGTON HAVE

SAID, "NOT SO FAST," QUESTIONING WHAT THE TAKEOVER COULD MEAN FOR U-S COMPETITIVENESS

AND FOOD SECURITY.

RIGHT, AND FOOD PRODUTION HAS ALREADY SEEN MASSIVE CHANGES... WITH GROWING DEMAND WORLDWIDE

FOR MEAT, MILK AND EGGS, SMALL-SCALE PRODUCTION HAS GIVEN WAY TO LARGE, INDUSTRIAL-SCALE OPERATIONS.

BUT THE TRANSITION, ALREADY IN EFFECT IN THE UNITED STATES, HAS ALSO SPAWNED A MOVEMENT

IN THE OTHER DIRECTION, WITH INCREASING DEMAND NOW FOR SMALL-SCALE, LOCALLY RAISED PRODUCTS.

WELL, VOA AGRICULTURE REPORTER STEVE BARAGONA HAS BEEN LOOKING AT THE TRENDS AND TALKED

WITH ON ASSIGNMENT'S DOUG BERNARD. LET'S CHECK IT OUT.

YOU'VE BEEN ON LARGE-SCALE FARMS, YOU'VE BEEN ON VERY SMALL-SCALE FARMS. WHAT ARE THE THINGS

THAT YOU NOTICE THAT ARE DIFFERENT ABOUT THESE TWO OPERATIONS?

WELL YOU KNOW WITH A SMALL FARM, THIS IS KIND OF WHAT WE THINK OF AS YOUR QUINTESSENTIAL

FARM. AND THE LARGE FARMS ARE DEFINITELY, YOU KNOW, IT'S MORE OF AN INDUSTRIAL KIND

OF OPERATION. YOU'VE GOT YOU KNOW HUNDREDS, THOUSANDS OF ANIMALS INSIDE A BUILDING, THE

BUILDING IS TO A CERTAIN EXTENT CLIMATE-CONTROLLED, THE DISPOSAL OF WASTE IS CONTROLLED, IT DOESN'T

FEEL LIKE WHAT YOU THINK OF AS A FARM. NOW WHAT WE THINK OF AS A FARM, YOU KNOW, THERE'S

A CERTAIN ELEMENT OF ROMANTICISM THAT WE HAVE TO THIS KIND OF MYTHICAL PAST.

SIMPLE LIFE, PASTORAL SETTING, GENTLEMAN FARMER, THAT SORT OF THING.

THAT'S THE IDEA.

A growing number of people like Kevin Summers in Amissville ((AM-iss-ville)), Virginia,

are returning to small-scale farming.

In order to feed the world, I think this is a better way. It's a cleaner way. It's a more

humane way."

More Americans today want to know where their food comes from. And they like the personal

touch that Summers gives his hogs.

I can see the entire process unfold before my eyes and know that they had a good life

and were healthy and happy."

SO LARGE SCALE FARMS ARE EFFICIENT, THEY'RE MORE PROFITABLE. WHY WOULD PEOPLE THEN WANT

TO GO, SAY IN PORK PRODUCTION, WHY WOULD THEY WANT TO GO BACK TO A SMALL-SCALE FARM?

WELL, THERE'S A LOT OF...A LOT OF THE THINGS THAT PEOPLE DON'T LIKE ABOUT THE LARGE SCALE,

WHEN YOU HAVE THAT MANY ANIMALS IN A SMALL SPACE, THEY CREATE A LOT OF POLLUTION. YOU'VE

GOT TO DEAL WITH THE WASTE SOMEHOW. AND THERE'S...THE USE OF ANTIBIOTICS IS A CONCERN. THERE'S ACTUALLY

A FAIRLY STRONG ANIMAL RIGHTS MOVEMENT IN THIS COUNTRY THAT SEES SOME OF THE PRACTICES

AS INHUMANE. AND, YOU KNOW, AS FAR AS THE SMALL SCALE FARMS, I THINK THE PEOPLE WHO

GO INTO THAT KIND OF FARMING FEEL A REAL PASSION FOR THE FOOD SYSTEM, FOR THE QUALITY OF THE

FOOD. I MEAN, THEY RAVE ABOUT THE FLAVOR, CHEFS RAVE ABOUT THE FLAVOR, PEOPLE WHO REALLY

KNOW WHAT PORK SHOULD TASTE LIKE ALWAYS GO FOR THE KINDS OF PIGS THAT ARE RAISED IN SMALL

SCALE FARMS, BECAUSE THEY EAT A MORE COMPLEX DIET. IT REALLY DEPENDS ON WHAT YOU'RE GOING

FOR.

CHINA HAS RECENTLY SAID THAT THEY'RE INTERESTED IN PURCHASING SMITHFIELD, WHICH IS THE LARGEST

U.S. PORK PRODUCER. WHY WOULD THEY WANT TO DO THAT?

GETTING A COMPANY LIKE SMITHFIELD WOULD BE A REAL ASSET FOR THEM, BECAUSE SMITHFIELD

IS THE WORLD'S LARGEST PORK PRODUCER, SO THEY HAVE HUGE TECHNOLOGIES OF SCALE, OR ECONOMIES

OF SCALE, SO THEY CAN PRODUCE A LARGE AMOUNT FOR...INEXPENSIVELY.

THERE WAS A HEARING ON CAPITOL HILL THAT LOOKED AT THIS AND SAID... THERE WAS A LOT OF SKEPTICISM

FROM THE SENATORS AT THIS HEARING. A LOT OF SKEPTICISM. THERE ARE CONCERNS THAT THE CHINESE

WILL DO, AS THEY HAVE DONE SUCCESSFULLY IN OTHER INDUSTRIES, THEY WILL ADOPT THIS TECHNOLOGY

AND EXPORT IT TO OUR LARGEST PORK CONSUMER, JAPAN, WHICH IS OF COURSE RIGHT NEXT DOOR

TO CHINA. THIS IS POTENTIALLY A FOOD SECURITY ISSUE FOR THE U.S. WOULD CHINA BUY SMITHFIELD,

AND THEN EXPORT ALL OF SMITHFIELD'S PORK TO CHINA? THEREBY RAISING THE PRICE OF PORK IN

THE U.S. THERE ARE FOLKS WHO RAISE FOOD SAFETY CONCERNS. THERE HAVE CERTAINLY BEEN PROBLEMS

WITH FOOD SAFETY IN CHINA, AND HAVING A CHINESE COMPANY IN CHARGE OF A U.S. COMPANY RAISES

CONCERNS, ALTHOUGH, YOU KNOW, PEOPLE SAY THAT WELL, THEY WOULD STILL BE SUBJECT TO ALL THE

U.S. LAWS ON FOOD SAFETY. IT'S SOMETHING THAT RAISES CONCERNS.

AND AGAIN, THAT WAS VOA'S AGRICULTURE REPORTER STEVE BARAGONA. NOW, HONG KONG-BASED SHUANGHUI

INTERNATIONAL'S $4.7 BILLION DOLLAR OFFER TO BUY SMITHFIELD FOODS IS THE BIGGEST PROPOSED

CHINESE TAKEOVER OF A U.S. COMPANY TO DATE.