WASHINGTON, D.C. (Reuters) — The U.S. Department of Agriculture has terminated a US$240,000 purchase contract with Chinese-owned Smithfield Foods that had been awarded under the government’s agricultural trade bailout program.
The department said the move was taken at the company’s request.
It comes weeks after Republican Senator Chuck Grassley of Iowa slammed Smithfield for receiving what he said was aid from the USDA that was meant to help American farmers hurt by China’s trade tariffs.
USDA spokesperson Tim Murtaugh said the transfer of funds for the food purchase contract had not yet taken place.
Smithfield, owned by Chinese conglomerate WH Group, is the world’s largest pork processor and hog producer with $15 billion annual revenues, according to its website.
