Decision on JBS Merger Expected Within the Week

BRAZIL - There is still debate going on in the United States, over the acquisition of Smithfield’s beef operation and National Beef Packers, by JBS-Swift the Brazilian beef giant.
calendar icon 16 October 2008
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The Five Rivers Ranch and feed-lot, is also proposed to be taken over by JBS, which will give the company 800,000 head of cattle, being fed in their own feed-lots at one time.

According to the Argentine Beefpackers Association, the claim has been made by farming groups, that JBS being operating in the cattle feeding business to such a large extent, will place producers at a disadvantage.

A new survey from the Texas Tech University, states that “Meat packer ownership and other forms of non price control of cattle in the feedlot are often seen as reducing competition for live cattle and putting producers at a disadvantage, but there are often potential benefits”.

These benefits are, increased efficiencies of a better control of cattle through the system, better quality control, according to Darren Hudson, the author of the report.

A decision from the Senate Committee is expected in the next week, as to the outcome of the proposed $1.535 billion deal, which will make JBS-Swift the worlds largest beef processor.

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