Consolidation

<a href="http://online.wsj.com/article/SB120603479112452259.html?mod=googlenews_wsj">Wyoming Cattlemen Worry About Meatpacking Mergers</a><br />n<br />n<blockquote>Wyoming cattlemen concerned about consolidation in the meatpacking industry said they are worried by a Brazilian company's bid to buy out two rivals and become the largest meatpacker in the U.S.<br />n<br />nMeanwhile, U.S. Sens. Mike Enzi (R., Wyo.) and John Barrasso (R., Wyo.) have asked U.S. Attorney General Michael Mukasey to make sure that the Justice Department closely reviews JBS SA's proposed $1.1 billion buyout of Smithfield Beef Group Inc. and National Beef Packing Co.</blockquote><br />n<br />nTo start with I will say that more than Wyoming cattlemen are worried about this, cattlemen across the US are worried about JBS buyout of Smithfield and National. Hell, even the <acronym title="National Cattlemans Beef Association, shills for the big meat packers">NCBA</acronym>, the meat packers best friend, is asking the Justice department to take a critical look at this.<br />n<br />nI will say I agree, this is really worrisome. The meat packers are all ready too concentrated and any further concentration will be bad for the beef industry as a whole in the US. What I really don't like is this;<br />n<br />n<blockquote>That would give JBS full control of Five Rivers Ranch Cattle Feeding LLC, made up of 10 feedlots in five states with capacity for 811,000 head of cattle.<br />n<br />nThe nation's largest meatpacker would then control the nation's largest feedlot company. Many Wyoming ranchers do business with the five Colorado feedlots owned by Five Rivers.<br />n<br />n"The feeding and meat processing sectors of the livestock industry are inextricably linked," Sens. Enzi and Barrasso, both Republicans, said in a letter to Mr. Mukasey on Friday.<br />n<br />n"The potential for a packing company to manipulate the market with ownership of livestock is inherent, and this merger exacerbates that situation. It is imperative that a full review of the JBS acquisition include consideration of these factors."</blockquote><br />n<br />nThe big packers owning the cattle before they slaughter them is really a problem. Technically the packers aren't supposed to own the cattle before they slaughter them but they find ways around the law. That doesn't make it right but that is the way it is.<br />n<br />nWell, we will see what happens. I'm sure JBS will throw enough money at the political process to buy there way in and get this buyout through. Maybe if cattlemen make enough noise we can stop it.<br />n<br />n<strong>Our country is now taking so steady a course as to show by what road it will pass to destruction, to wit: by consolidation of power first, and then corruption, its necessary consequence. Thomas Jefferson </strong>