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JBS Swift merger plan sparks opposition in cattle countryGroups want acquisition of Smithfield Beef and National Beef blocked The Western Organization of Resource Councils joined with more than 70 organizations to ask the Department of Justice to block acquisition of Smithfield Beef and National Beef by JBS Swift. In a letter to the department, the groups asked the Antitrust Division to "scrutinize the merger, issue a second request, and strongly consider blocking the deal." The organizations stated the proposed merger "will harm price, choice, innovation and competition in the beef industry." The groups' main concern is with the buying market for cattle. The organizations also noted that fewer major meat processors would likely have adverse effects on consumers. JBS Swift, a Brazilian company, announced plans in March to buy the companies, two of biggest U.S. meat packers. If approved, the merger would make JBS Swift the largest meat packer in the U.S. and the world. The acquisition would reduce the largest meat packers in this country from five to three. Many Western ranchers have long been concerned with the consolidation of the meat packing industry and its impact on family-based livestock producers. WORC spokesperson Dan Teigen said restoring market competition would help to reinvigorate rural communities and restore the rancher's share of the consumer dollar, which has shifted toward the few remaining large packers. "If rural America is going to remain viable, it needs fairer and competitive markets," said Teigen, a Montana rancher. "We need to stop this merger from further surrendering our food security and market competition to fewer and larger corporate interests." Teigen said federal legislation and policy changes would fix the broken livestock markets. "The threat of this merger, added to the monopolistic packing sector, shows the importance of enacting reforms like prohibiting packer ownership of livestock, now pending in the farm bill," he said. "An effective Justice Department should work to provide healthy oversight by better scrutinizing agricultural mergers like this current example with JBS." A copy of the letter is available at www.worc.org. Based in Billings, Mont., WORC is a network of conservation and family agriculture organizations in Colorado, Idaho, Montana, North Dakota, Oregon, South Dakota and Wyoming. 4/7/08 Date: 4/3/08
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