Friday, November 14, 2008

Cattle Producers and OCM file suit against JBS merger R-CALF USA, along with the Organization for Competitive Markets (OCM), today jointly filed litigation in the U.S. District Court – Northern District of Illinois, Eastern Division, against the proposed acquisition of National Beef Packing Co. (National Beef) 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 Government 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. Our lawsuit further addresses the impacts on feeders and other cattle. Our lawsuit 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 (Five Rivers) 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....

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