I'm a little concerned about China's Bright Food Group becoming the major shareholder in Tnuva.
My concern is not strategic - others are worrying about that. My concerns revolve around
(a) Tnuva's image
(b) Tnuva's quality control
Those concerns go hand-in-hand.
In the Several States, Chinese products are known for being, at best, shoddy, and at worst, dangerous to health.
Time and time again Chinese products have had to be recalled.
Dog food that sickens canines
Drywall that emits corrosive gases
Lead in paint of toys that often find their way into the mouths of small children
Tires that fall apart
And those represent just the tip of the proverbial iceberg.
We know the Chinese don't care about either quality or laws governing their products import into other countries.
This is NOT "anti-Communist" or "anti-China" rhetoric - Chinese products simply too often are dangerous.
If Tnuva (and Smithfield) products are made in Israel (and Virginia) and the quality assurance/quality remains in Israeli (American) hands and the product is simply exported to China (hopefully still under the manufacturers' supervision), then maybe its not so bad. I would be concerned that the product would be mishandled on the trip and go dangerously bad.
On the other hand, China now can control dairy product prices - via supply and demand - in Israel. It wasn't long ago that Israeli consumers went on strike against what they perceived to be over-priced products. The government stepped in and applied some pressure to resolve the matter. It won't have that leverage if the Chinese drive up the price of, say, cottage cheese, in Israel to subsidize its sale in China.
As a risk management practitioner, I would be against the sale; there are simply too many disadvantages to Tnuva and to the Israeli consumer.
If China wants to produce dairy products and put a Tnuva label on them, that presents a risk for Tnuva's reputation.
It's a done deal, Tnuva's majority stockholders - Brits - enjoy their profits from the sale and Tnuva is in jeopardy.
