March 27, 2008

Coalition seeks to block JBS deals in the US
 

An alliance of 72 cattle producers, consumers and religious leaders expressed concern about JBS SA's planned purchase of National Beef Packing, Smithfield Foods' beef operations and Five Rivers Ranch Cattle Feeding.

The coalition wrote a letter to the US Department of Justice urging officials to examine the merger, issue a second request and strongly consider blocking the deal. 

JBS has already purchased Swift Co., the largest meatpacker in the US which controls 32 percent of the industry's slaughter capacity.

According to the group, if the deal would push through along with the proposed purchase of some Australian beef companies, JBS would control 10 percent of the world's beef supplies and would only have two major competitors in the US, namely Tyson and Cargill.

They also warned justice officials that JBS' purchases would harm price, choice, innovation and competition in the beef industry and might even negatively impact consumers.