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Overnight Open Thread

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funky chicken4/28/2009 4:56:24 am PDT
The lagoons themselves are so viscous and venomous that if someone falls in it is foolish to try to save him. A few years ago, a truck driver in Oklahoma was transferring pig shit to a lagoon when he and his truck went over the side. It took almost three weeks to recover his body. In 1992, when a worker making repairs to a lagoon in Minnesota began to choke to death on the fumes, another worker dived in after him, and they died the same death. In another instance, a worker who was repairing a lagoon in Michigan was overcome by the fumes and fell in. His fifteen-year-old nephew dived in to save him but was overcome, the worker’s cousin went in to save the teenager but was overcome, the worker’s older brother dived in to save them but was overcome, and then the worker’s father dived in. They all died in pig shit.
The chairman of Smithfield Foods, Joseph Luter III, is a funny, jowly, canny, barbarous guy who lives in a multimillion-dollar condo on Park Avenue in Manhattan and conveys himself about the planet in a corporate jet and a private yacht. At sixty-seven, he is unrepentant in the face of criticism. He describes himself as a “tough man in a tough business” and his factories as wholly legitimate products of the American free market. He can be sardonic; he likes to mock his critics and rivals.

Luter grew up butchering hogs in his father’s slaughterhouse, in the town of Smithfield, Virginia. When he took over the family business forty years ago, it was a local, marginally profitable meatpacking operation. Under Luter, Smithfield was soon making enough money to begin purchasing neighboring meatpackers. From the beginning, Luter thought monopolistically. He bought out his local competition until he completely dominated the regional pork-processing market.

But Luter was dissatisfied. The company was still buying most of its hogs from local farmers; Luter wanted to create a system, known as “total vertical integration,” in which Smithfield controls every stage of production, from the moment a hog is born until the day it passes through the slaughterhouse. So he imposed a new kind of contract on farmers: The company would own the living hogs; the contractors would raise the pigs and be responsible for managing the hog shit and disposing of dead hogs. The system made it impossible for small hog farmers to survive — those who could not handle thousands and thousands of pigs were driven out of business. “It was a simple matter of economic power,” says Eric Tabor, chief of staff for Iowa’s attorney general.

Smithfield’s expansion was unique in the history of the industry: Between 1990 and 2005, it grew by more than 1,000 percent. In 1997 it was the nation’s seventh-largest pork producer; by 1999 it was the largest. Smithfield now kills one of every four pigs sold commercially in the United States. As Smithfield expanded, it consolidated its operations, clustering millions of fattening hogs around its slaughterhouses. Under Luter, the company was turning into a great pollution machine: Smithfield was suddenly producing unheard-of amounts of pig shit laced with drugs and chemicals. According to the EPA, Smithfield’s largest farm-slaughterhouse operation — in Tar Heel, North Carolina — dumps more toxic waste into the nation’s water each year than all but three other industrial facilities in America.

rollingstone.com