JBS To Buy National AND Smithfield!!!!!!!!!

[Mike]

3/5/2008 9:28:00 AM


Mixed Views On JBS' Purchase Of National, Smithfield Beef



KANSAS CITY (Dow Jones)--Market analysts and agricultural economists hold mixed views of the JBS SA (JBSS3.BR) purchase of National Beef and Smithfield Foods' (SFD) beef division.



If the deals are completed, JBS would be able to slaughter about 42,000 head of cattle on a daily basis in the U.S., including fed cattle and cows. Tyson Foods (TSN) and Cargill can each slaughter about 28,000 head, according to industry analysts.



Many analysts and commodity brokers question whether the federal government will allow both deals to be completed because JBS would have such a large share of the U.S. cattle and beef market. The current U.S. daily cattle slaughter capacity is estimated around 127,000 to 130,000 head.



Dan Vaught, analyst with Wachovia Securities in St. Louis, said the purchases by JBS are "probably good news for producers in the short run" as the remaining big packers "fight for (market) share." However, he expects some anti-trust issues to be raised, and while the government may not prevent the deals from going through, there could be a delay for quite some time.



Glenn Grimes, agricultural economist at the University of Missouri, said he doesn't expect the deals to have much influence on the day to day operations at the existing plants. The three remaining big companies would still compete for the cattle.



However, Grimes also said that unless there is improvement in beef processing margins, there will be additional plant closures to reduce daily capacity regardless if these deals are completed.





Source: Curt Thacker, Dow Jones Newswires; 913-322-5178; [email protected].

 

[Anonymous]

Control the countries food supply and you control the country. Control the worlds food supply and you control the world.

I assume this Administration, that opposes any regulation on the coporates setting up of a New World Order, will allow this to go thru....Should make a good argument in the hearings on the Farm Bill and Packer Ownership tho- so I'm sending copies off to my Rep and Senators....

As was shown in Russia after the breakup of the USSR- pure unregulated capitalism does not work...The Russian mafia/black market took over many steps in the marketing system of all necessities-- but what is ironic the one they went after first and concentrated on was the food supply- knowing this is where they could make the most and use it to in turn gain more control....Everyone has to eat...Until they had the prices/market so controlled, the people actually went to Putin and demanded he put back in some of the Communist laws/rules to break their control....

 

[Mike]

people actually went to Putin and demanded he put back in some of the Communist laws/rules to break their control....

Is that what you are advocating? Communist laws?

Well, the House just passed a rule yesterday that gives Chavez a tax break over our own oil companies. Yes, the same oil companies that pay over 1/2 TRILLION DOLLARS per year in taxes.

Be careful for what you wish...............................

 

[Anonymous]

people actually went to Putin and demanded he put back in some of the Communist laws/rules to break their control....

Is that what you are advocating? Communist laws?

Be careful for what you wish...............................

I didn't say that Mike-to them it was the only rules/laws they had on the books-- but there are reasons we have our monopoly and antitrust laws in place- since the people of this country have also asked for regulation...But when you have a corrupt Administration with no proactive regulation and no enforcement at all- you get situations where the reaction is usually overreactive....And that is what we may see come in the future...

 

[Red Barn Angus]

And the Pentagon just awarded a $40 Billion contract for Air Force refueling tankers to Airbus, a French company. Imagine parts would be a little hard to get if we got in a war with any part of Europe. Food control by Brazil and defense control by France with China as our banker. Doesn't anybody in Washington have a brain?

 

[Red Robin]

Doesn't anybody in Washington have a brain?

..obama gonna save us all.

 

[Red Barn Angus]

Afraid I don't have your confidence in Obama. He's going to have a lot of favors to repay if he gets in....where is he getting all his money????

 

[Red Robin]

He has a plan Red barn angus. You just got to have some faith, hope and love then peace will be yours. You're just too uptight. It's our generations turn now.

 

[Mike]

He has a plan Red barn angus. You just got to have some faith, hope and love then peace will be yours. You're just too uptight. It's our generations turn now.

The "Change" will do you in.

In fact, all you will get to keep after paying taxes is "Change". :lol:

 

[Red Barn Angus]

Yea, RR, you sound like Berekly in the 60's.....yea man peace and love will get you everything. Of course they mixed it with a little pot and some guitar music and everything was great. Have to admit "make love, not war" had some appeal but was tough to pay many bills with peace and love! Obama has no platform, he has no solutions but he does have one helluva lot of money behind him and they are going to want a return on their investment if he should get in and it won't be pretty for the rest of us.

 

[Triangle Bar]

Along with JBS purchasing Smithfield Beef they also purchased Five Rivers Ranch Cattle Feeding LLC.

Taking over Five Rivers also increases JBS's own cattle feeding dramatically. Five Rivers can feed up to 811,000 head of cattle at one time and has operations in Colorado, Idaho, Kansas, Oklahoma and Texas, according to the company's website. For now, Smithfield retains ownership of the current cattle in the feedlots and will sell those to JBS at market prices, according to a Smithfield news release.

 

[Red Robin]

He has a plan Red barn angus. You just got to have some faith, hope and love then peace will be yours. You're just too uptight. It's our generations turn now.

The "Change" will do you in.

In fact, all you will get to keep after paying taxes is "Change". :lol:

Iran says we need change! The liberals agree with Iran again, of course.

GENEVA -- Iran's foreign minister said Wednesday his country hopes the next U.S. president will be a leader who can bring change because America's current policies have failed.

 

[RobertMac]

I think RR is being a bit sarcastic...at least I hope!!!! :shock:

We may see if ~SH~'s idea of competition is the same as our government's...."it only takes two to compete"!!!!!!!!

 

[Red Robin]

Nobody on this thread going to discuss how they were wrong about packer control? Did Jbs friboi have a lock on the U.S. packing segment in 2004? What up yo? Could you men have been wrrrrrrrrrong?

Secondly if Smithfield was making all this easy money, why did they sell? Could it be that they can't source uniform , profitable cattle and cut them for a profit? Hmmmm?

 

[Sandhusker]

What points to anybody being wrong about packer control?

 

[Red Robin]

The fact that the packers you thought had control, now don't.

 

[Sandhusker]

The fact that the packers you thought had control, now don't.

Because one of them sells out means they didn't have control? Have you been reading some of ~SH~'s mumbo jumbo?

 

[Red Robin]

The fact that the packers you thought had control, now don't.

Because one of them sells out means they didn't have control? Have you been reading some of ~SH~'s mumbo jumbo?

Friboi has control and they didn't a couple years ago is my point.

 

[Sandhusker]

I still don't understand what you're getting at, Robin. The big packers here have control, no doubt about it. The names are just changing.

 

[Red Robin]

I still don't understand what you're getting at, Robin. The big packers here have control, no doubt about it. The names are just changing.

It's not a very tight control if there's a new player that comes along and in a year is the biggest packer in the nation.