07/23/08 JBS Swift and senator

Should a foreign company become the largest beef processor in the U.S.? One senator has his opinion. I'm Jeff Keane; I'll be right back to tell you about that opinion. About two months ago I told you about the possible acquisition of National Beef Packing Company, the beef-processing segment of Smithfield Foods Inc., and Five Rivers Ranch Cattle Feeding LLC by Brazilian beef processor JBS Swift. This buy would make JBS Swift the largest beef processor in the United States. Senator Herb Kohl, chairman of the senate subcommittee on antitrust, competition policy and consumer rights, has written a letter to Thomas Barnett, the head of the Justice Department's antitrust division, urging the Justice Department to block the purchases by JBS Swift. Senator Kohl chaired a hearing that examined the deals and summarize reducing the number of major buyers for ranchers' cattle from five to three would give these remaining beef processors enormous buying power. Now, Senator Kohl does not have the authority to stop the buy-out, but can raise objections. At the minimum, Senator Kohl feels JBS Swift should not be able to buy Five Rivers feeding operation, which sells about two million cattle each year. This would give the processor the option and power of not buying cattle on the spot market, which could depress prices. Personally, it gives me a real uneasy feeling that a foreign company could become our country's largest beef processor. I'm Jeff Keane.