04/30/08 JBS

When a big buy-out is eminent, there can be a lot of questions and concerns. I'm Jeff Keane; I'll be back in one minute to explain. The Brazilian-based company JBS S.A. recently bought American-owned Swift meatpacking company and now is hoping the U.S. Department of Justice will not deny them the opportunity to purchase National Beef Packing Company, the Smithfield Beef Group and Five Rivers Ranch Cattle Feeding. This acquisition would make JBS-Swift the largest meat packer in the U.S. and would give them control of approximately 15 percent of the fed cattle needed for their packing facilities. Control is the key word that has many groups and individuals concerned about the proposed buy-out. Groups like R-CALF, USA and 71 others including cattle producers, consumers, and religious leaders felt so strongly about their concerns, they have asked the U.S. Department of Justice to block the deal. In response, the Batista family, owners of JBS S.A. and their vice president of Public Affairs, Chandler Keys are attending meetings with cattle and beef producers to assure them the purchase would be good for the industry. JBS-Swift is an aggressive player both in domestic and foreign markets and in conventional and unconventional marketing. That characteristic should be a plus. Joesley Batista says the deal would give U.S. producers more plants they can sell cattle to. I can't quite get my mind around that statement. I think the purchase will happen and then time will tell if it hurts or helps the U.S. cattle industry. I'm Jeff Keane.