Corporate Farming Notes
Brazilian firm plunges into U.S. meatpacking and cattle feeding ventures; California beef recall the largest in history
On March 4, JBS-S.A. of Sao Paulo, Brazil embarked on a beef packing acquisition binge. That day JBS announced its intention to purchase National Beef Company of Kansas City, America’s fourth largest beef packer. The next day, JBS announced its acquisition of Smithfield Beef Group.
If approved by the Justice Department, these acquisitions would give JBS the capacity to slaughter over 42,000 head of cattle per day in the U.S. or about 32 percent of national slaughter. Cargill, with 29,000 head per day slaughter capacity, and Tyson, with 28,300, are the second and third largest beef packers in the U.S. and combined with JBS would account for over 80 percent of U.S. beef slaughter.
JBS would also acquire Five Rivers Cattle Feeding, a Smithfield joint venture consisting of feedlots in Idaho, Colorado, Kansas, Oklahoma, and Texas with combined capacity to feed over 800,000 cattle at one time.
Two days and $1 billion later, JBS is positioned to become the largest cattle feeder in the world along with its status as the largest beef packer in the U.S. and worldwide. JBS continues to demonstrate to ranchers and farmers with cattle exactly why a ban on packer ownership should become federal law, just as Smithfield has convinced family farm hog producers.
On February 18 the Hallmark/Westland Meat Packing Company of Chino, California, recalled 143 million pounds of beef, the largest recall in U.S. history. The Food Safety and Inspection Service determined that the beef in question was unfit because some of the cattle slaughtered did not receive “complete and proper inspection.”
The Hallmark/Westland recall occurred because the company forced “downer” cows that could not walk or stand for inspection, as required by federal regulation, to stand by using forklifts, electric cattle prods to the face, and other extremely abusive methods. The abusive practices were captured on video shot by a Humane Society investigator inside the plant.
Hallmark/Westland CEO Steven Mendell was subpoenaed to appear before a Congressional investigative hearing on March 12. USDA, however, has done little more than rescind Hallmark/Westland’s USDA “Supplier of the Year” award for the 2004/2005 school year. Over 37 million pounds of the beef recalled by Hallmark/Westland last month had made its way into school lunch programs throughout the country, according to USDA officials.
Contact: John Crabtree, 402.687.2103 x 1010 or johnc@cfra.org for more information on the Center’s Corporate Farming Notes.
On March 4, JBS-S.A. of Sao Paulo, Brazil embarked on a beef packing acquisition binge. That day JBS announced its intention to purchase National Beef Company of Kansas City, America’s fourth largest beef packer. The next day, JBS announced its acquisition of Smithfield Beef Group.
If approved by the Justice Department, these acquisitions would give JBS the capacity to slaughter over 42,000 head of cattle per day in the U.S. or about 32 percent of national slaughter. Cargill, with 29,000 head per day slaughter capacity, and Tyson, with 28,300, are the second and third largest beef packers in the U.S. and combined with JBS would account for over 80 percent of U.S. beef slaughter.
JBS would also acquire Five Rivers Cattle Feeding, a Smithfield joint venture consisting of feedlots in Idaho, Colorado, Kansas, Oklahoma, and Texas with combined capacity to feed over 800,000 cattle at one time.
Two days and $1 billion later, JBS is positioned to become the largest cattle feeder in the world along with its status as the largest beef packer in the U.S. and worldwide. JBS continues to demonstrate to ranchers and farmers with cattle exactly why a ban on packer ownership should become federal law, just as Smithfield has convinced family farm hog producers.
On February 18 the Hallmark/Westland Meat Packing Company of Chino, California, recalled 143 million pounds of beef, the largest recall in U.S. history. The Food Safety and Inspection Service determined that the beef in question was unfit because some of the cattle slaughtered did not receive “complete and proper inspection.”
The Hallmark/Westland recall occurred because the company forced “downer” cows that could not walk or stand for inspection, as required by federal regulation, to stand by using forklifts, electric cattle prods to the face, and other extremely abusive methods. The abusive practices were captured on video shot by a Humane Society investigator inside the plant.
Hallmark/Westland CEO Steven Mendell was subpoenaed to appear before a Congressional investigative hearing on March 12. USDA, however, has done little more than rescind Hallmark/Westland’s USDA “Supplier of the Year” award for the 2004/2005 school year. Over 37 million pounds of the beef recalled by Hallmark/Westland last month had made its way into school lunch programs throughout the country, according to USDA officials.
Contact: John Crabtree, 402.687.2103 x 1010 or johnc@cfra.org for more information on the Center’s Corporate Farming Notes.
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