DOJ aims to block JBS-Swift’s purchase of National Beef

[Anonymous]

Bullock: Cancellation of JBS Acquisition a "Big Win" for Montana

Montana Attorney General Steve Bullock praised last week's announcement that JBS Beef, S.A., has ended its efforts to acquire National Beef Packing Company.

The move would have concentrated 80 percent of U.S. packing operations in just three companies and resulted in lower prices paid to cattle producers and higher prices for consumers buying beef.

The Montana Attorney General, along with 16 other states and the U.S. Department of Justice, led the legal efforts to oppose the merger by suing in federal district court in October to block the deal.

"Today's decision is a big win for family farmers and ranchers in Montana, and it will help protect consumers when they buy beef," Bullock said. "It's great news that this deal was withdrawn, but given the high level of concentration that still exists, the marketplace still is not fair for Montana's number one industry, production agriculture."

The proposed merger would have given Brazil-based JBS-the world's largest beef processor-a third of the U.S.-fed cattle processing market and made it the largest beef processor in the United States, concentrating over 80 percent of U.S.-fed cattle processing capacity in just three companies.

At the same time, the concentration in the market would have enabled JBS, Tyson and Cargill to raise the prices they charge customers for processed beef.

"Even though this merger isn't moving forward, four companies still control 80 percent of the market," Bullock said. "We still have a lot more to do to protect Montana producers and consumers from the effects of market concentration."

 

[RobertMac]

"Big Win"????

Sobering fact..."four companies still control 80 percent of the market"

The "up side" to JBS is they are a beef company.
A big win would be to get the beef industry out from under the wing of "poultry".

Change the regulatory burden on small processors before they are all run out of business which would eliminate the producer's access to the consumer...then, it wouldn't matter how few packers we have!

 

[mrj]

Never mind that when "two companies merge", very often it is because one or both of them are struggling to survive and by combining assets and business a stronger company is achieved.

Who can pay more for supplies (cattle or anything else), a weaker company, or a stronger company?

Who is less likely to default on payment of supplies, the stronger company, or the weaker company?

It might be nice to have a state of the art packing plant, with highly paid and motivated workers, in every one of the cattle producing states, but how many of them could be sound businesses if that were the case?

mrj

 

[RobertMac]

Never mind that when "two companies merge", very often it is because one or both of them are struggling to survive and by combining assets and business a stronger company is achieved.

Who can pay more for supplies (cattle or anything else), a weaker company, or a stronger company?

Who is less likely to default on payment of supplies, the stronger company, or the weaker company?

It might be nice to have a state of the art packing plant, with highly paid and motivated workers, in every one of the cattle producing states, but how many of them could be sound businesses if that were the case?

mrj

Using your logic...a monopoly would be best for the industry...but do you believe it would be best for the producer?

Plants are concentrated around cattle finishing states. Back when packing plants and finishing were in cattle producing states, beef had more market share and better quality(more prime/high choice). I believe the system we have today is the major problem for trying to increase beef quality. Stress is the number one problem for beef quality and stress is built into every segment of this beef production system!

 

[Tex]

"Big Win"????

Sobering fact..."four companies still control 80 percent of the market"

The "up side" to JBS is they are a beef company.
A big win would be to get the beef industry out from under the wing of "poultry".

Change the regulatory burden on small processors before they are all run out of business which would eliminate the producer's access to the consumer...then, it wouldn't matter how few packers we have!

I totally agree with you RM. A step in the right direction is not a step over the finish line. At least they have turned things around in direction but you are right that there is a lot more of the race to be run. We have gone so far away from good economic principles that it is embarrassing that I would call this a "big win". At least it is a step in the right direction instead of the wrong direction. We need to get rid of the fascist bent that big money has bought in our politics.

 

[Ben Roberts]

JBS Swift, could care less about owning more old worn-out packing plants, or Five Rivers cattle feedlots in the United States. They bought Swift, and then found that Swift was so poorly managed that it was going to fail. National Beef is very well managed, that was the attraction for JBS.

With the help of Wal-Mart, JBS will sell all the beef they want to sell in this country, from Brazil.


Best Regards
Ben Roberts

 

[Texan]

JBS Swift, could care less about owning more old worn-out packing plants, or Five Rivers cattle feedlots in the United States. They bought Swift, and then found that Swift was so poorly managed that it was going to fail. National Beef is very well managed, that was the attraction for JBS.

With the help of Wal-Mart, JBS will sell all the beef they want to sell in this country, from Brazil.


Best Regards
Ben Roberts

It's really good to see you back, Ben. I've missed reading your posts.

 

[Tex]

JBS Swift, could care less about owning more old worn-out packing plants, or Five Rivers cattle feedlots in the United States. They bought Swift, and then found that Swift was so poorly managed that it was going to fail. National Beef is very well managed, that was the attraction for JBS.

With the help of Wal-Mart, JBS will sell all the beef they want to sell in this country, from Brazil.


Best Regards
Ben Roberts

It's really good to see you back, Ben. I've missed reading your posts.

Me too, and I agree with you Ben, if we allow it to happen. Theoretically, we are in control of our own government but we have to exercise that right to have it.

 

[Ben Roberts]

JBS Swift, could care less about owning more old worn-out packing plants, or Five Rivers cattle feedlots in the United States. They bought Swift, and then found that Swift was so poorly managed that it was going to fail. National Beef is very well managed, that was the attraction for JBS.

With the help of Wal-Mart, JBS will sell all the beef they want to sell in this country, from Brazil.


Best Regards
Ben Roberts

It's really good to see you back, Ben. I've missed reading your posts.

Thank You. I'm back for a very short time, as I just don't have the time for this thread. I'm still spending my time trying to help cattle producers though. Have you ever noticed, how we police ourselves in this industry? We must get-over that mind-set.

Best Regards
Ben Roberts

 

[Ben Roberts]

JBS Swift, could care less about owning more old worn-out packing plants, or Five Rivers cattle feedlots in the United States. They bought Swift, and then found that Swift was so poorly managed that it was going to fail. National Beef is very well managed, that was the attraction for JBS.

With the help of Wal-Mart, JBS will sell all the beef they want to sell in this country, from Brazil.


Best Regards
Ben Roberts

It's really good to see you back, Ben. I've missed reading your posts.

Me too, and I agree with you Ben, if we allow it to happen. Theoretically, we are in control of our own government but we have to exercise that right to have it.

And thank you also. We can't stop Brazilian beef from coming into this country, it already has been for over a hundred years. The biggest threat now, to the US and Canadian cattle industry is XL.

Best Regards
Ben Roberts

 

[PORKER]

JBS proclaims its innocence in corruption investigation

(MEATPOULTRY.com, June 17, 2009)
by Bryan Salvage
JBS splits ownership of Five Rivers
(

JBS S.A. loss deepens due to debt
(MEATPOULTRY.com, May 15, 2009)




SAO PAULO, BRAZIL — JBS S.A. is among several Brazilian meat packers and leather companies being investigated by Brazil's federal prosecutor's office in what's being labeled a corruption case that has targeted several companies in the beef industry, according to Reuters. Specifically, the investigation is looking into allegations of bribing public officials, racketeering, corruption, fraud and collusion, a representative at the federal prosecutor's office told Reuters.

"JBS affirms that it does not have any involvement in crimes associated with this Federal Superintendence of Agriculture investigation in the State of Rondônia, or in any other State," JBS responded in a statement e-mailed to MEATPOULTRY.com. "The company, although unaware of the precise details of the investigation, has made itself available to the federal police and will cooperate with them fully at all times."

JBS went on to say it was visited by the federal police of the State of Rondônia at its plant in the City of Porto Velho on June 16. A warrant had been issued by the Federal Justice of the State of Rondônia to search and capture documents.

The company added it received the federal police and contributed to the investigation. Documents related to the federal inspection were collected, as well audit reports, copy of the plant operational licenses and more. No electronic data storage devices, computer or any kind of equipment, however, was detained, due to a lack of evidence that any crime was committed, JBS said.

Another take on the same story
JBS SA – the world's biggest beef processor – and others are under investigation by Brazil's federal prosecutor's office in a widespread corruption case.
Several meatpackers and leather and hide companies are part of the investigation – which began about a year ago.

The public relations department of Brazil's federal prosecutor's office released a statement saying several people were being rounded up and held in police custody following police sting operations.

The prosecutor's office said it was investigating the bribing of public officials, racketeering, corruption, fraud and collusion.