September 28, 2009
US cattle group opposes JBS acquisition of Pilgrim's Pride
R-CALF USA, a cattle producers group, has called on the Justice Department to block the acquisition of Pilgrim's Pride by Brazilian beef giant JBS SA.
JBS SA will purchase 64 percent of Pilgrim's Pride for US$800 million, with existing shareholders owning the remaining 36 percent.
Cattle demand and prices are influenced by the supply and price of competing proteins such as pork and poultry, said Bill Bullard, CEO of R-CALF USA.
He said JBS' acquisition of Pilgrim's Pride, which controls over 20 percent of US poultry production, could allow the Brazilian company to further manipulate the competing protein market in the US.
