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KCA addresses JBS concerns to Attorney GeneralKansas At a recent meeting with Kansas Attorney General Stephen Six, Kansas Cattlemen's Association and a number of producers discussed concerns regarding the potential acquisition of Smithfield Beef, National, and Five Rivers Ranch Cattle Feeding LLC. Producers discussed how JBS S.A., Latin America's largest beef processor, purchased Swift & Company, then the world's third-largest processor of fresh beef and pork products, in July 2007. As a result of this acquisition, the consolidated JBS Swift Group became the largest beef processor in the world. Now with the intent to purchase two of the U.S.'s major packing companies and the largest feeding company, Kansas producers stated that the acquisition has a tremendous and immediate impact on the state of Kansas and its economy. If this acquisition is permitted, JBS will consolidate the third-, fourth- and fifth-largest U.S. beef processors. Producers also asserted that purchasing Five Rivers Ranch Cattle Feeding LLC would provide JBS with the opportunity to process company owned cattle, allowing them to stay out of the market and to not bid on and compete with the other packers. With many of the processing plants located in southwest Kansas, and due to many of the Five Rivers feeding yards in close proximately to those plants and the biggest feeding region in Kansas, producers have concerns that this will be detrimental to the feeding sector of our industry as well. This type of anti-competitive business activity will not only drive down the price of cattle, but will inevitably put producers out of business. KCA and cattle producers gave specific examples of current market practices and how JBS' purchase of multiple packers and feed yards could violate anti-trust laws. "I thought the Attorney General and his staff were very receptive to our issues and they were very helpful. We hope that this can be addressed and action can be taken," remarked cattle producer and KCA Board member Rick Chambers. KCA Vice President, Lee Robbins added, "I thought they were very interested in what we had to say. It is obvious that we (KCA) need to be working with them to provide them with and gather information so that some action can be taken for cattle producers so that we can help stop some consolidation in the beef industry." 5/26/08 Date: 5/22/08
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