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Texas Officials Urge Justice Department to Closely Examine Ramifications of JBS Merger Billings, Mont. (June 19, 2008) – R-CALF USA was pleased to learn that Texas Commissioner of Agriculture Todd Staples and Comptroller of Public Accounts Susan Combs, as “representatives of the largest cattle state in the nation,” have contacted the U.S. Department of Justice to request a “thorough review” of the proposed acquisitions by Brazilian-owned JBS SA of National Beef Packing Co., Smithfield Beef Group and Five Rivers Ranch Cattle Feeding. Combs previously served as Texas Commissioner of Agriculture. “I want to very graciously thank these officials for taking the time to write a letter to the Justice Department and I will continue to work with them to make sure they have all the information they need in order to see how this JBS merger would harm independent U.S. cattle producers by increasing JBS’ market power and decreasing competition in the marketplace,” said R-CALF USA Region V Director Stayton Weldon, of Cuero, Texas. “I’m absolutely thrilled to death that we’ve gotten some kind of response from Texas on any cattle-related issue. I look forward to keeping them informed by providing an independent producer’s view of the industry.” “The largest beef processor in the world, JBS will become owner of the largest cattle feeder in the country if the merger is complete,” the letter states in part. “This unification of companies will also combine three of the top five U.S. beef processors into a single entity. With a price tag estimated to be more than $1 billion, the proposed business transaction is facing close scrutiny from the market and producers. “As supporters of competition in market economies, we urge you to examine closely the ramifications of this merger,” the letter continues. “We understand a strong procedural system and stringent legal requirements are in place for these types of review and are vital in protecting competition in agricultural markets…” R-CALF USA CEO Bill Bullard said the group hopes that attorneys general from around the country will join together and use their authority to formally challenge the JBS merger. Note: To view the letter from Staples and Combs 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. |
