Livestock farmers raise eyebrows at JBS acquisition
08/07/2009
JBS Friboi’s move to take over five idle abattoirs in the state of Mato Grosso (leatherbiz, July 7, 2009) has sparked concerns in the state that further consolidation in the meat industry there may lie ahead.
Organisations representing livestock farmers in that part of Brazil have said that, while they believe it is good for the abattoirs to be active again, too great a proportion of the meat processing industry in the hands of large packer groups, such as JBS, makes them concerned about “price manipulation”.
Paulo Resende, chief executive of a landowners’ association, APR, told local media: “It would be ideal for us if the abattoirs were controlled by various firms. Contraction of the market means we have fewer options when it comes to selling cattle.”
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