Kathy Lang: September 2008 Archives
Although the U.S. beef
packing industry has always been concentrated, recent announcements pave the
way for even higher levels of concentration. Specifically, the Brazilian beef
processor, JBS, who last year purchased
the third largest packer in the United States (Swift
and Company), announced its intention in March of this year to purchase the
fourth and fifth largest packers (National
Beef and the beef packing operations of Smithfield),
as well as Smithfield's shares in Five Rivers Ranch Cattle Feeding
(Reuters).
Not only would these acquisitions make JBS the largest beef packer in the
United States and further increase industry concentration, they also open the
way for a high degree of vertical integration in the beef industry.
Continue reading Structure of the U.S. Beef Industry.
