Officials with Brazil meat packer Marfrig Global Foods announced Monday they’ve acquired controlling stake of U.S.-based National Beef Packing Company. Under the $969 million agreement Marfrig will control 51-percent of National Beef. That will make them the world’s second-largest beef processor, right behind JBS of Brazil. Organization for Competitive Markets Executive Director Joe Maxwell says that is a real concern.
He says having two foreign companies controlling most of the world’s beef processing will hurt U.S. beef producers as well as consumers.
Maxwell says while it’s not required, they’re hoping the U.S. Justice Department will review this buyout.
Maxwell says another concern OCM has with the Marfrig purchase of National Beef is that if it goes forward, they’ll be able to take advantage of a USDA labeling policy that allows overseas companies to bring in foreign beef to the U.S., rewrap it and label it as product of the U.S.A.
