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JBS Hits Back at Anti-trust Criticisms

March 18, 2013

BRAZIL – Brazilian meat processor JBS has hit back at criticisms of its takeover of SSBs tannery and refrigeration units.

The criticisms were raised by the Superintendent General of the Administrative Council for Economic Defense CADE during the antitrust analysis.

JBS said the opinion was inconclusive and defends the “need for further studies on the degree of rivalry in the industry and the impact of operations both in the slaughter as with respect to the price of meat to the final consumer, the Council will make such a measurement “.

JBS said CADE demonstrates that the operations in recent years do not breech competition rules, becasue there is strong competition ion the industry and it is also possible for new players to entrer the market.

JBS added that the prices paid to the farmer nationwide, have been stable or have risen following acquisitions made by JBS and the company recognises the importance of good pay for its suppliers in order to maintain and encourage livestock production in the country.

JBS added that agricultural production in Brazil has been concentrated, because approximately one-third of the animals slaughtered by JBS come from only three per cent of existing ranchers in Brazil.

It added that in 2011 the company had a share 15.4 per cent share of total slaughter in Brazil, according to the Department of Agriculture USDA and the specialist publication ANUALPEC, which demonstrates the low concentration in the domestic industry.

JBS said it has always acted in accordance with current legislation and understands that leasing and rental assets are not required to be submitted to CADE.

JBS said iut had always acted with the utmost transparency in the provision of data and information, and expects, in a highly technical analysis, all operations will be approved by the Administrative Court of CADE.

via JBS Hits Back at Anti-trust Criticisms – The Meat Site.

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