HDRider
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What will this do to calf prices in the US?
On Friday, February 21, the United States reopened its border to fresh beef from Brazil after a more than two-year ban, according to a letter sent by the Food Safety and Inspection Service to the Brazilian agriculture minister, as reported by Bloomberg News.
The U.S. beef processing industry is highly consolidated, with four corporations controlling 85% of the market. The two largest beef processors operating in the U.S, JBS and Marfrig, are Brazilian corporations. JBS has admitted it acquired the top spot by bribing 1,800 Brazilian politicians to acquire government-backed loans to purchase major U.S. processing plants. JBS' market concentration in the beef, pork and poultry industry was gained through unfair and illegal competition.
The news comes on the heels of last week's announcement that JBS plans to purchase U.S.-based Empire Packing Co. for $238 million, giving it control of five additional production facilities located in Ohio, Tennessee and Washington. In August 2019, JBS announced that while China had suspended the purchase of U.S. agricultural products, it turned to JBS' Brazilian operations to supply its demand.
The U.S. had closed its border to Brazilian beef after numerous concerns were raised about its safety. In 2017, JBS was caught bribing meat inspectors and exporting adulterated rotten meat worldwide. Because the U.S. no longer requires mandatory Country-of-Origin Labeling on beef, and the USDA allows imported meat to be falsely labeled "Product of U.S.A.," consumers will not be able to distinguish between U.S. beef and the new imports.
https://competitivemarkets.com/fueling-beef-monopoly-expansion-u-s-lifts-two-year-ban-on-brazilian-beef-imports/
On Friday, February 21, the United States reopened its border to fresh beef from Brazil after a more than two-year ban, according to a letter sent by the Food Safety and Inspection Service to the Brazilian agriculture minister, as reported by Bloomberg News.
The U.S. beef processing industry is highly consolidated, with four corporations controlling 85% of the market. The two largest beef processors operating in the U.S, JBS and Marfrig, are Brazilian corporations. JBS has admitted it acquired the top spot by bribing 1,800 Brazilian politicians to acquire government-backed loans to purchase major U.S. processing plants. JBS' market concentration in the beef, pork and poultry industry was gained through unfair and illegal competition.
The news comes on the heels of last week's announcement that JBS plans to purchase U.S.-based Empire Packing Co. for $238 million, giving it control of five additional production facilities located in Ohio, Tennessee and Washington. In August 2019, JBS announced that while China had suspended the purchase of U.S. agricultural products, it turned to JBS' Brazilian operations to supply its demand.
The U.S. had closed its border to Brazilian beef after numerous concerns were raised about its safety. In 2017, JBS was caught bribing meat inspectors and exporting adulterated rotten meat worldwide. Because the U.S. no longer requires mandatory Country-of-Origin Labeling on beef, and the USDA allows imported meat to be falsely labeled "Product of U.S.A.," consumers will not be able to distinguish between U.S. beef and the new imports.
https://competitivemarkets.com/fueling-beef-monopoly-expansion-u-s-lifts-two-year-ban-on-brazilian-beef-imports/