is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist

Cattle Groups Respond to JBS-Swift Acquisition

R-CALF USA calls the acquisition anticompetitive, but will it affect domestic competition?

Latin America's largest beef packer, Brazil's JBS-Friboi, is set to acquire the third-largest beef packer in the U.S., Swift Co. The transaction would create the world's largest beef packer, and R-CALF USA is not happy about it.

According to R-CALF Trade Committee Chair Eric Nelson, the acquisition could be trouble for U.S. beef producers. "U.S. cattle producers cannot expect to win the competition with Brazil in a marketplace that turns a blind eye to anti-competitive practices and does not include rules that recognize the unique characteristics of the U.S. cattle industry. In a free-for-all competition with Brazil under current market conditions, Brazil could drive our domestic prices into the basement, resulting in a mass exodus of U.S. cattle producers."

NCBA's Joe Schuele points out that since JBS is based in Brazil, its acquisition of Swift would not affect domestic market concentration. Additionally, Schuele points out that the U.S. packing industry won't get any more access to Brazilian beef imports, which are highly restricted, than before the merger.

"Cattlemen are pragmatic businessmen - they want to do business with good people," Schuele tells Farm Progress. How JBS fits the bill remains to be seen.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish