Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Cattle Industry Organization R-CALF USA Seeks a Probe into JBS Scandal and Its Impact on the US

Wed, 07 Jun 2017 15:35:37 CDT

Cattle Industry Organization R-CALF USA Seeks a Probe into JBS Scandal and Its Impact on the US Today, R-CALF USA sent a comprehensive, 11-page request to President Trump, Senate Judiciary Committee Chairman Charles Grassley, Attorney General Jeff Sessions and Agriculture Secretary Sonny Perdue for a full investigation and strict antitrust enforcement action in the wake of the unfolding corruption charges against JBS.

Citing news reports that JBS admitted bribing nearly 2,000 politicians, R-CALF USA wrote that JBS's business model included unlawful practices to influence policy makers and it was as likely as not that JBS deployed that same corrupt business model in the United States.

"A full and complete investigation is needed to determine the full scope of JBS's potentially unlawful activities in the United States and the impact that any such unlawful activities have had on the single largest segment of American agriculture - the U.S. live cattle industry," the group wrote.

JBS is the second-largest beef packer in the United States and owns the nation's largest cattle feeding company, which the group contends was used by JBS, in conjunction with imported cattle and beef, to manipulate the cattle markets in 2015 and 2016, causing fed cattle prices to fall by more than $850 per head.   

The group called JBS a powerful influence on Capitol Hill and alleged that U.S. officials helped JBS build a monopolistic, American empire in the U.S. protein market with the company's ill-gotten gains. It also said the market power amassed by JBS has facilitated antitrust violations and unlawful conduct that threatens both domestic food safety and food security.

Since 2008 the group has repeatedly requested the U.S. Department of Justice (Justice Department) to enforce U.S. antitrust laws each time JBS proposed a new acquisition of U.S. cattle and beef industry assets, but its requests went unheeded with one exception - JBS's attempt to acquire National Beef Packing Company. Joined by 17 state attorney's general, the Justice Department did block that proposed acquisition. But in today's letter, the group called that a token enforcement action that had little impact on JBS's market power abuses.

In addition to alleging that the Justice Department's approval of all but one of JBS's numerous acquisition proposals raises the specter that decisions involving JBS were based on inappropriate considerations, the group contends that other federal agencies and Congress facilitated JBS's ability to reshape the cattle industry's legal framework. Examples cited by the group include JBS's success at convincing Congress to repeal country of origin labeling (COOL) and forestalling the implementation of rules intended to implement the Packers and Stockyards Act, preventing reforms to the beef checkoff program, and convincing the U.S. Department of Agriculture to systematically relax import restricts established to prevent the introduction of foot-and-mouth disease.

The group's letter contends that all of these policy positions were likely based on JBS's considerable and inappropriate influence on policy makers.

In conclusion, the group states that "if it is found that JBS has, indeed, built its monopolistic U.S. livestock and meat empire through unlawful means, then every U.S.-based asset owned by JBS should be immediately divested. Similarly, if it is found that JBS engaged in unlawful conduct to curry public policy favors from Congress, federal agencies, and state governments (e.g., repeal of COOL, defeat of GIPSA rules and relaxation of disease protections) then those policy positions should be immediately revisited, if not reversed."

Source - R-CALF



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Wind Industry Nervous Over State Legislature's Flirtations with Retroactive Cuts to Existing Incentives  Thu, 22 Mar 2018 17:16:28 CDT
  • Five-Dollar Wheat has Come and Gone but OSU's Kim Anderson says there's Potential to See it Again  Thu, 22 Mar 2018 16:17:38 CDT
  • Thursday Market Wrap-Up with Justin Lewis  Thu, 22 Mar 2018 16:06:20 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Thursday, March 22, 2018  Thu, 22 Mar 2018 14:57:23 CDT
  • Soy Growers Welcome Provisions Included in Omnibus Bill Set to Resolve List of Issues in Ag Industry  Thu, 22 Mar 2018 14:53:14 CDT
  • Thursday Afternoon Market Wrap-Up with Carson Horn  Thu, 22 Mar 2018 14:07:35 CDT
  • Soy Assoc Warn Retaliatory Action by China in Response to Tariffs may Cost Farmers their Livelihood  Thu, 22 Mar 2018 12:39:08 CDT
  • Free Trade Group Says Tariffs Stemming from China Investigation puts Target on US Farmers' Back  Thu, 22 Mar 2018 12:27:45 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association Oklahoma City Farm Show

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.