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Grassley-Harkin Concerned

Mike

Well-known member
Congress members express concern about JBS



Staff Reports
March 6, 2008

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Members of Congress have expressed concern about consolidation in the beef industry with the announcement by JBS S.A.’s purchase of two beef processing companies and the largest cattle feeding operation which will be operated by JBS Swift & Co. of Greeley.

Sen. Chuck Grassley, R-Ill., in a press release from his office, expressed concern that further consolation will reduce market opportunities for family farmers and increase prices and provide less choice for consumers.

Sen. Tom Harkin, D-Iowa, chairman of the Senate Committee on Agriculture, Nutrition and Forestry told the Dow Jones Newswires that he is urging the Department of Justice to carefully evaluate the affect of the acquisitions will have on producers and consumers.

Grassley has also been pressing Justice on agricultural consolidation.

“I’ve been pressing the Justice Department about consolidation in agriculture, but the department doesn’t appear to think there is a problem. Quite honestly, I don’t know how much longer they can continue to let these mergers slide by,” Grassley said in his prepared statement.

JBS, earlier this week, announced it was buying National Beef Co. and the Smithfield Beef Group, which are the No. 3 and 4 beef processor in the U.S., along with Five Rivers Ranch Cattle Feeding and a multi-species processor in Australia for a reported $1.7 billion. It makes JBS Swift & Co. the largest beef processor in the United States.
 

PORKER

Well-known member
It might be interesting who the shareholders and owners of JBS S.A. are. Could it be that names were only traded? Wonder how many investors from offshore accounts that tied back to the US.
 

cedardell

Well-known member
I think the original post said that this was being funded by Capital Investors Equity Group. I asked my brother who is an accountant how you could find out who Capital Investors are. His response was that it was impossible because that is confidential information. Maybe he is wrong. If any of you know maybe this would be a good post. It would be nice to know names of who is backing the deal.
 

Mike

Well-known member
PORKER said:
Funded by Capital Investors Equity Group,Who are Capital Investors ?

"HM Capital Partners, LLC" is the new name for "Hicks, Muse, Tate, and Furst" a leveraged buyout investor group from Dallas, Texas.

This should give you enough info for some research...........
 

PORKER

Well-known member
Date: Monday, September 23 2002
Subject: Food, Investment companies
Company: ConAgra Foods Inc., Hicks, Muse, Tate and Furst Inc., Booth Creek Management Corp., Swift and Co.
Product: Investment Companies, Canned, Dried & Frozen Foods, Meat Products
Location: United States

Hicks, Muse, Tate & Furst Incorporated and Booth Creek Management Corporation announced that they have completed their previously announced $1.4 billion acquisition of the fresh beef and pork processing business of ConAgra Foods, Inc. The acquired operations, which have been named Swift & Company, include the third-largest processor of both beef and pork in the United States, and the leading Australian beef processor. ConAgra Foods has retained a significant minority stake in Swift & Company.

Under the transaction, which the parties expect to complete during August 2002, HMTF and Booth Creek will acquire ConAgra Meats, the third-largest processor of both beef and pork in the United States, its Australia Meat Holdings unit, the leading Australian beef processor, and its U.S. cattle feeding operations.

HMTF will control the acquired entity. Booth Creek, an investor in meatpacking and value-added processing operations, among other investment areas, will provide support to the acquired businesses and will hold a minority stake. ConAgra Foods will also retain a signifi cant minority stake in the acquired operations.
 

cedardell

Well-known member
I tnink Booth Creek Investers also bought IBP from Oxidental Petroleum and was in on the deal when Tyson bought IBP. Talk about a monoply. I'll bet they own part of all the major packing plants, except maybe Cargill. Maybe they own part of that too. They must have a lot of clout at the directors meetings.
 

cedardell

Well-known member
Who Booth Creel Investors and why they are so intent on getting the packing industriy out of the US. It seems like the packing Industry is essential to the food industry. They provide jobs, markets for our producers, food, resources from bi-products, and are a way of life for a major sector of the USA. Why should all this be monopilized by a Brazilian owner. They already have a market channel to the US, why do they want to monopolize them. Unless of course so Texas businessmen stand to profit handsomley from the deal.
 

mrj

Well-known member
Does anyone have any information linking such events (moving US Ag bus. overseas) to the enviro-extremists who are determined to end all messy ag endeavors (from dust producing farming to all livestock production) in the USA? This could be either from the point of off-shore investors seeing the benefit of buying out US companies and selling finished product back to US consumers, or from US Ag Bus. seeing off-shore as the only places they can continue a viable business, IMO.

Al Gore may have been the first to say that out loud (to a group of FFA kids, maybe) and then, claimed mis-understanding of his meaning when called on it, as I recall the stories at the time. May have been within the past five to eight years.

mrj
 
A

Anonymous

Guest
“Fighting for the U.S. Cattle Producer”



For Immediate Release Contact: Shae Dodson, Communications Coordinator
March 13, 2008 Phone: 406-672-8969; e-mail: [email protected]



Cattle Producers to Department of Justice: Block JBS Purchases



Washington, D.C. – In a letter sent today to the U.S. Department of Justice regarding JBS Acquisitions’ plans to purchase National Beef Packing Co., Smithfield Beef Group, and Five Rivers Ranch Cattle Feeding, R-CALF USA expressed concern that such transactions would cause injury to competition in both the U.S. cattle industry and the U.S. beef industry, which would result in harm to both independent U.S. cattle producers and U.S. consumers.



JBS Acquisitions would become the largest beef packer in the U.S., and R-CALF USA explained that JBS likely would capture over 35 percent of the domestic cattle slaughter – based on evidence that indicates Tyson Foods already controlled that amount of the market in the mid-1990s.



“We urge the U.S. Department of Justice to rigorously investigate the potential impacts of this proposed purchase; to prevent its consummation pending a thorough investigation; and to ultimately block this proposed purchase should evidence be found indicating any reduction in competition to either the U.S. cattle industry or the U.S. beef industry,” wrote R-CALF USA President/Region VI Director Max Thornsberry. “Should this purchase materialize, the market power concentrated in the hands of the remaining three packers…would intensify, as would their propensity to exercise this market power to the detriment of competition, resulting in economic injury to independent U.S. cattle producers and U.S. consumers.”

Evidence already exists that demonstrates the exercise of market power by the current four firms that dominate the beef packing industry. Juries in Pickett v. Tyson Fresh Meats, Inc. and in Herman Schumacher et al. v. Tyson Fresh Meats, Inc. et al. have found, as matters of fact, that the actions of dominant beef packers, even at the current level of concentration, effectively manipulated prices paid to domestic cattle producers. Studies also show that market power can be, and is being, exerted by the dominant beef packers, at current concentration levels.[1]

Equally disturbing are media reports indicating that JBS SA’s Friboi Group (JBSS3.BR) has been cited by the Brazilian Justice Department’s antitrust division for engaging in anti-competitive practices to keep cattle prices low when purchasing for slaughter.[2] The U.S. Department of Justice should independently investigate the circumstances surrounding any such anti-competitive practices alleged against and/or committed by JBS before allowi ng this proposed purchase to proceed.

“Specifically, the department should determine, as a precondition for this sale, whether U.S. laws are adequate, and adequately enforced, to prospectively prevent a recurrence of the kind and type of anti-competitive behavior as was alleged to have been perpetrated by JBS in Brazil,” Thornsberry wrote.

“R-CALF has taken a strong position against these JBS purchases for good reason,” said R-CALF USA Vice President/Region II Director Randy Stevenson. “The Justice Department must make absolutely certain that U.S. laws are adequate – and that there is adequate enforcement of those laws – to ensure U.S. cattle producers and consumers are not subjected to anti-competitive practices.



“Imagine if you will, the day before the purchases are announced, that three buyers from Swift, National and Smithfield meet together to discuss their plans to buy slaughter cattle,” he explained. “If that occurred, those buyers would be in violation of antitrust laws against collusion. If they had such a discussion openly, it would provide the Justice Department with a ‘smoking gun’ with which to prosecute.



“The activities of three buyers of the third, fourth and fifth largest beef processors colluding would most certainly hurt the price of live cattle,” Stevenson continued. “But, on the day after these proposed acquisitions, the same three buyers could discuss their plans without breaking the law. Who among us would expect the outcome on live cattle prices to be any different?”



Note: To view the letter, visit the “Competition Issues” link at www.r-calfusa.com, or contact R-CALF USA Communications Coordinator Shae Dodson at the phone number or e-mail address listed above.
 

Sandhusker

Well-known member
"Imagine if you will, the day before the purchases are announced, that three buyers from Swift, National and Smithfield meet together to discuss their plans to buy slaughter cattle,” he explained. “If that occurred, those buyers would be in violation of antitrust laws against collusion. If they had such a discussion openly, it would provide the Justice Department with a ‘smoking gun’ with which to prosecute. "

“The activities of three buyers of the third, fourth and fifth largest beef processors colluding would most certainly hurt the price of live cattle,” Stevenson continued. “But, on the day after these proposed acquisitions, the same three buyers could discuss their plans without breaking the law. Who among us would expect the outcome on live cattle prices to be any different?”

That says a lot, folks. Meditate on that for a while.
 

PORKER

Well-known member
Equally disturbing are media reports indicating that JBS SA’s Friboi Group (JBSS3.BR) has been cited by the Brazilian Justice Department’s antitrust division for engaging in anti-competitive practices to keep cattle prices low when purchasing for slaughter.

The also lied about traceability to the EU which cut the Brazils off the meat supply to Europe.
 

PORKER

Well-known member
NCBA is also concerned why the administration is trying to increase beef imports while U.S. beef exports are still banned in other countries. Hey HayHa Ho

The USDA and NCBA doesn't even know COOL is COMING. 199 days left to get your cattle tagged and in a field to retail database.
 

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