05/29/08 JBS S.A. banker

The "Big" may get bigger I'm Jeff Keane; I'll be right back to fill you in. About a month ago I told you about the Brazilian conglomerate JBS S.A. that has purchased the Americans meatpacking plant Swift and company in Greeley, Colorado. This group with U.S. Department of Justice approval would also like to purchase National Beef Packing, The Smithfield Beef Group and Five Rivers Ranch Cattle Feeding. This would let JBS Swift control about 30 percent of the beef processing capacity in the U.S. and about 15 percent of the fed cattle needed for those facilities. Now I have read JBS S.A. has received confirmation from the Australian Competition and Consumer Commission to go ahead with its purchase of the multi-species processor, Tasman Group. This will give JBS S.A. ten meat-processing plants and five feedlots in Australia. The Tasman Group will immediately be integrated as a subsidiary of JBS Swift and Company in the U.S. In addition to this acquisition JBS S.A. has received permission from Central Bank of Brazil to open a bank to provide financing and investment for commercial clients. Somehow this gives me a real uneasy feeling with such a large company having so much market control and now financing power. I know our operation wouldn't make a blimp on world beef production radar, but I do worry about the effect on the U.S. beef industry. I'll have to be convinced the whole scenario will be beneficial for our industry. I'm Jeff Keane