US Beef Industry is Consolidating — Fast!

<div style="text-align: center"><img src="/files/u2/cattleflorida500_1.jpg" title="cattle" alt="cattle" height="70" hspace="3" vspace="3" width="125" /></div>Somebody call the Humane Society! Brazilian meatpacking giant JBS SA is eating the US beef industry alive. Last year, JBS bought Colorado-based Swift & Co. Earlier this week, JBS announced that it would buy National Beef in Kansas City for $560. And then the acquisitive giant said it was in advanced talks to buy Smithfield Food Inc.'s beef business for $565.<br /><br />The business press described the deal as "shocking." And it must still pass through anti-trust review at the Bush Justice Department. <a href="http://www.canada.com/edmontonjournal/news/business/story.html?id=b91144e6-1396-4361-b557-ec2bf2b05d1e" target="_blank">Reuters reported </a> that authorities will let the deal go through. If so, JBS will become the largest beef producer in the United States.<br /><br />JBS would control 32 percent of the US beef market and ten percent of the world market. Currently, Tyson has 25 percent of the US market.