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KFB engaged in cattle industry deal ramificationsKansas County FB presidents will take concerns to Capitol Hill Kansas News that Brazil-based JBS S.A. intends to add National Beef, Smithfield Beef and Five Rivers Cattle Company to its beef processing business in the United States has some Kansas cattle producers concerned--and Kansas Farm Bureau engaged on their behalf. Total cost of the acquisitions is set at $1.7 billion. The deal could take six months to a year to complete, according to officials with the various companies involved. National Beef operates beef plants in Dodge City, Liberal and Kansas City, Kan. While JBS is a market-based, for-profit enterprise and saw the opportunity to expand its business, this proposed transaction has the potential to drastically re-shape the American cattle industry. The U.S. Department of Justice will first have to approve this transaction before becoming official. Kansas Farm Bureau will use that time to elevate the discussion about the potential real-world ramifications of this transaction on the lives of family farmers and their rural Kansas communities. "The timing of this announcement is fortuitous," said Steve Baccus, a grain farmer from Ottawa County, who serves as president of Kansas Farm Bureau. "Next week, more than five dozen county Farm Bureau presidents from Kansas will be on Capitol Hill. We'll not be shy in sharing our concerns with our elected leaders in Washington. "Cattle producers will have some legitimate concerns about what this may mean in terms of industry consolidation and the potential for decreased competition," said Mark Nelson, Director of Commodities for Kansas Farm Bureau. "We've combined the third, fourth and fifth largest packers into one, so we've just taken some bidders out of the market." Officials of JBS S.A., have indicated publicly the company has no intentions of closing any beef packing plant in the United States, though they admitted there is more processing capacity than there is a supply of cattle. Working with our partners at the American Farm Bureau Federation, Kansas Farm Bureau is committed to active involvement in these discussions to protect the interests of our membership and of the American cattle feeding industry. Kansas Farm Bureau represents grassroots agriculture. Established in 1919, this non-profit advocacy organization supports farm families who earn their living in a changing industry. 3/17/08 Date: 3/13/08 Advertisement
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