South American takeover of major U.S. meatpacking operations
Center for Rural Affairs
Brazilian firm plunges into U.S. meatpacking and cattle feeding ventures
On March 4, JBS-S.A. of Sao Paulo, Brazil embarked on a beef packing acquisition binge. That day JBS announced its intention to purchase National Beef Company of Kansas City, America’s fourth largest beef packer. The next day, JBS announced its acquisition of Smithfield Beef Group.
If approved by the Justice Department, these acquisitions would give JBS the capacity to slaughter over 42,000 head of cattle per day in the U.S. or about 32 percent of national slaughter. Cargill, with 29,000 head per day slaughter capacity, and Tyson, with 28,300, are the second and third largest beef packers in the U.S. and combined with JBS would account for over 80 percent of U.S. beef slaughter.
JBS would also acquire Five Rivers Cattle Feeding, a Smithfield joint venture consisting of feedlots in Idaho, Colorado, Kansas, Oklahoma, and Texas with combined capacity to feed over 800,000 cattle at one time.
Two days and $1 billion later, JBS is positioned to become the largest cattle feeder in the world along with its status as the largest beef packer in the U.S. and worldwide. JBS continues to demonstrate to ranchers and farmers with cattle exactly why a ban on packer ownership should become federal law, just as Smithfield has convinced family farm hog producers.
(More here.)
Brazilian firm plunges into U.S. meatpacking and cattle feeding ventures
On March 4, JBS-S.A. of Sao Paulo, Brazil embarked on a beef packing acquisition binge. That day JBS announced its intention to purchase National Beef Company of Kansas City, America’s fourth largest beef packer. The next day, JBS announced its acquisition of Smithfield Beef Group.
If approved by the Justice Department, these acquisitions would give JBS the capacity to slaughter over 42,000 head of cattle per day in the U.S. or about 32 percent of national slaughter. Cargill, with 29,000 head per day slaughter capacity, and Tyson, with 28,300, are the second and third largest beef packers in the U.S. and combined with JBS would account for over 80 percent of U.S. beef slaughter.
JBS would also acquire Five Rivers Cattle Feeding, a Smithfield joint venture consisting of feedlots in Idaho, Colorado, Kansas, Oklahoma, and Texas with combined capacity to feed over 800,000 cattle at one time.
Two days and $1 billion later, JBS is positioned to become the largest cattle feeder in the world along with its status as the largest beef packer in the U.S. and worldwide. JBS continues to demonstrate to ranchers and farmers with cattle exactly why a ban on packer ownership should become federal law, just as Smithfield has convinced family farm hog producers.
(More here.)
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