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Group Applauds Justice Department and States Action Billings, Mont. (October 20, 2008) – R-CALF USA resoundingly applauds today’s decision by the U.S. Department of Justice and numerous state attorneys general offices to block the proposal by Brazilian-owned JBS SA (JBS), which has already acquired the nation’s 3rd largest meatpacker – Swift & Company – to also purchase the nations 4th and 5th largest meatpackers – National Beef Packing Co. and Smithfield Beef Group – as well the nation’s largest cattle feeding corporation – Five Rivers Ranch Cattle Feeding. In an announcement made today by the Justice Department, the Justice Department and the Attorneys General of Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas and Wyoming are joining the Justice Department’s lawsuit. “We believe the Justice Department and state Attorneys General have an extremely strong case and we are extremely pleased that they have taken action to protect the competitiveness of the U.S. cattle industry,” said R-CALF USA President/Region VI Director Max Thornsberry. Today’s announcement suggests that the lawsuit filed by the Justice Department specifically addresses the National Beef Packing Co. component of the proposed merger and not the Smithfield Beef Group component. “Apparently, the Justice Department’s merger investigation found that the most severe antitrust and anticompetitive problems stemmed from the proposed purchase of the 4th largest meatpacker and not the 5th largest meatpacker, but it’s too early to determine what overall affect this will have on the plans of JBS,” Thornsberry said. Since March, R-CALF USA has submitted volumes of evidence, data and analysis to the Department of Justice and the group of State Attorneys General encouraging them to block the proposed JBS merger. In addition, R-CALF USA testified at a May hearing of the U.S. Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights. Following that hearing, Subcommittee Chairman Sen. Herb Kohl, D-Wis., sent a formal letter to the Justice Department requesting that the JBS mergers be blocked on the basis that “these acquisitions are likely to result in substantially increased market power for JBS Swift and the other two remaining national beef processors, significantly lower prices to ranchers and higher prices for beef consumers.” “We are grateful that the Justice Department and State Attorneys General have considered our concerns and are taking meaningful action to protect U.S. cattle producers and consumers against the abusive market power that can result from industry concentration,” said Thornsberry adding “R-CALF USA will now review any options the industry may have to address the Smithfield Beef Group component of this merger.” # # # R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. R-CALF USA directors and committee chairs are extremely active unpaid volunteers. For more information, visit www.r-calfusa.com or, call 406-252-2516. |
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This page was last updated on Wednesday, December 24, 2008. |
