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R-CALF, OCM file suit against JBS mergerR-CALF USA, along with the Organization for Competitive Markets, Nov. 13 jointly filed litigation in the U.S. District Court--Northern District of Illinois, Eastern Division, against the proposed acquisition of National Beef Packing Co., by Brazilian-owned meatpacker JBS, already the world's largest meatpacker. The U.S. Department of Justice--along with a total of 17 state attorneys general--also filed litigation against JBS in this matter. Like the governmant suit the R-CALF USA/OCM lawsuit seeks to block JBS' proposed acquisition of National Beef. The government's lawsuit focuses primarily on the impacts on fat cattle and consumers. This lawsuit further addresses the impacts on feeders and other cattle. It also explains how packers use captive supplies to leverage down prices and how this negatively impacts the price for all classes of cattle. We specifically explain that the effects of the merger are even more significant because of the Five Rivers Ranch Cattle Feeding operations and the U.S. Premium Beef feeding arrangements that are included in the merger. "We believe our involvement will assist the government's case because we can fully represent the views and competitive concerns of farmers, ranchers and feeders who are most affected by this merger," said R-CALF USA CEO Bill Bullard. R-CALF USA and OCM have collaborated since March to encourage the DOJ and numerous state attorneys general to take enforcement action, not only against this particular acquisition but also JBS' recently approved purchases of Smithfield Beef Group and Five Rivers Ranch Cattle Feeding. R-CALF USA submitted seven separate white papers to DOJ and the state attorneys general and provided state-specific cattle industry information to eight state attorneys general in that effort. Both R-CALF USA and OCM testified before the U.S. Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights and have met with the DOJ and state attorneys general. R-CALF USA and OCM each applauded the lawsuit filed by the DOJ and state attorneys general to block the acquisition of National by JBS and both were disappointed that Smithfield and Five Rivers were excluded from that lawsuit. "Because of the profound impacts this proposed merger would have on U.S. cattle producers, the thousands of domestic cattle farmers and ranchers cannot be sideline observers in this historic lawsuit," Bullard said. "Even without the Smithfield and Five Rivers components, this is the largest and most compelling merger ever contemplated in the U.S. cattle industry and it would radically restructure the U.S. cattle markets." "That's the reason our two organizations have joined together in a lawsuit concurrent with the DOJ's and state attorneys' general," said OCM Executive Director Fred Stokes. "While we share an interest in defending our U.S. antitrust laws, we also have a unique perspective regarding the adverse effect this merger would have not just on competition as a whole, but on individual cattle producers as well. We are proud to join this fight to preserve our cattle markets for independent cattle producers." "R-CALF literally has been on the front lines of every major issue that has threatened the competitiveness of the U.S. cattle industry over the past decade, and we are pleased to join with OCM to continue this important fight," Bullard added. "Our industry needs more competition, not more concentration, and our lawsuit is an important step in stopping ongoing concentration so we can soon focus on rebuilding the competition we've already lost," Stokes commented. "I agree," Bullard said. "Unless independent cattle producers want to see their industry to go the way of the corporately controlled poultry and hog industries, every U.S. cattle producer should support R-CALF USA and OCM in their fight to ensure a very different future for the U.S. cattle industry--a future based on competition and independence, not on command and control." The original 13 state attorneys general who joined the DOJ in its original Oct. 20, complaint against JBS represent Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas and Wyoming. On Friday, Nov. 7, four more state attorneys general--from Arizona, Connecticut, New Mexico and Mississippi--also joined the Justice Department in its complaint against JBS. 11/24/08 Date: 11/19/08 Advertisement
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