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10/20/2008 Boswell Praises Department of Justice's Decision on JBS Acquiring National Beef Packing CO. For Immediate Release
“I am pleased that the Department of Justice has taken action to stop this acquisition which would have long lasting impacts on the agricultural community across the United States not only for producers but also the American consumer. For many years I have been concerned that the concentration in the livestock industry will lead to weak or non-existent competition for small and independent producers and ultimately lead to higher beef prices for consumers. I think the Department of Justice’s decision today highlights this concern and I am pleased that they are finally moving towards protecting consumers and our producers.” Below is the letter Boswell sent to Department of Justice in March:
The Honorable Thomas O. Barnett Dear Assistant Attorney General Barnett: I am writing to request that the U.S. Department of Justice thoroughly examine the proposed acquisition of National Beef Packing Co. and Smithfield Beef Group by JBS Acquisitions. This acquisition has the potential to have long lasting impacts on the agricultural community across the United States not only for our producers but also the American consumer. JBS is the world’s largest beef packer and the third largest beef processor in the nation. National Beef Packing is the fourth largest beef processor and Smithfield Beef Group is the fifth largest. Should this transaction go through it would make JBS the largest beef processor in the nation with control over 30 percent of the beef processing market. Current concentration in the beef industry has made competition weak or non-existent in many areas of the country. A consolidation of three of the top five largest beef processors in the United States would only further this concentration leaving small and independent producers less options to market their cattle, ultimately leaving the American consumer with less choice at the grocery store. I urge the Department of Justice to thoroughly review this proposed acquisition to ensure that there is adequate competition in the livestock industry. Thank you for your attention to this matter and I look forward to your response. Should you have any questions please feel free to contact me or Chandler Goule, Staff Director for the Livestock, Dairy and Poultry Subcommittee at (202) 225-8407.
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