DORGAN APPLAUDS FEDERAL LAWSUIT CHALLENGING CONSOLIDATION IN PACKING INDUSTRY

Senator says JBS' buyout of National Beef Packing would hurt ranchers and consumers

Wednesday, October 22, 2008

CONTACT: Justin Kitsch
or  Brenden Timpe
PHONE: 202-224-2551

(WASHINGTON, D.C.) – U.S. Senator Byron Dorgan (D-N.D.) applauded action by the U.S. Department of Justice to challenge the consolidation of two corporate meat packers. Dorgan said the acquisition of National Beef Packing Co., the nation’s fourth-largest beef producer, by JBS Inc., the world’s largest beef producer, would be a serious blow to producers and consumers.

Dorgan said the Justice Department is taking a positive step by filing a civil antitrust lawsuit challenging the deal, under which the Brazilian-based JBS would acquire National Beef for $560 million. Separately, JBS is planning to acquire the beef operations of Smithfield Foods Inc. – the nation’s fifth-largest beef producer – for $565 million.

In March, Dorgan, Senator Kent Conrad (D-N.D.) and a group of Senate colleagues sent a letter to the Department of Justice warning of the impact the JBS-National Beef acquisition would have on the beef industry.

“We have already seen far too much concentration in the packing industry. This is an important step to try to slow that down,” Dorgan said. “These big corporate packing plants see profits in this move, but the end result would hurt our ranchers and force consumers to pay higher prices at the grocery store. I hope the Justice Department will go even further and act to prevent JBS from taking over beef operations at Smithfield Foods. It’s long past time for this Administration to stop making excuses for the big corporate outfits and start standing up for consumers and our ranchers.”

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