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Oklahoma Attorney General Joins Colleagues to Warn
Justice Department Billings, Mont. (June 9, 2008) – R-CALF USA Oklahoma Membership Chair Wayne Foley said he was pleased to see that Oklahoma Attorney General W.A. Drew Edmondson had joined other state attorneys general to warn the U.S. Department of Justice that the proposed transactions by Brazilian-owned JBS to purchase National Beef Packing Co., Smithfield Beef Group, and Five Rivers Ranch Cattle Feeding likely would harm not only Oklahoma cattle producers, but beef consumers there as well. “I’ve been corresponding with Mr. Edmondson and sending him our information and I think he’s on our side pretty good,” Foley said today. “We don’t want to sell our cattle producers out to the South Americans. That’s just not the way to go.” Edmondson’s letter to the Justice Department said because Five Rivers is the largest cattle feeder corporation in the United States, with five of its feedlots in southwest Kansas and the Oklahoma and Texas panhandles, that “after the merger, Oklahoma beef producers could face a packing market with only three competitors. However, one of those competitors, JBS, may have a limited need to buy cattle because of the cattle inventories in Five Rivers’ feedlots. “In short, this merger…would result in the nation’s largest meat processor exercising control over the nation’s largest feedlot operation. This kind of vertical integration could result in a company that has the power to drive down the prices paid to beef producers while at the same time driving up the prices consumers pay for beef at the grocery store.” R-CALF USA CEO Bill Bullard said the group will continue to work closely with attorneys general from other states to make certain the Justice Department reaches the right decision, with the interests of U.S. citizens and the nation’s food security first and foremost. Note: To view Edmondson’s letter in its entirety, visit the “Competition Issues” link at www.r-calfusa.com. # # # R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, non-profit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516. |
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This page was last updated on Wednesday, December 24, 2008. |
