News

JBS confirms bid to buy Rockdale beef

22 Mar, 2010 08:32 AM

BRAZILIAN meat processor JBS has announced its plans to buy NSW business Rockdale Beef for an undisclosed price subject to approval.

Rockdale operates an integrated meatworks, feedlot, feed mill, and farming business, on about 2,000 hectares of farming land in the Riverina.

Its meatworks has a capacity of about 200,000 cattle per annum combined with a feedlot capacity of over 50,000 cattle.

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comments

Date: Newest first | Oldest first

Personally if we have to have os buyers of these meatworks, i would like to see a cap on the number they own/operate in Aust.., so JBS doesnt have a monopoly. We all know what happens to prices when there isnt another competitor. I just wish China wanted to purchase meatworks and a few less mining companies..

Posted by tj, 22/03/2010 11:28:12 AM

How long before JBS begins to rationalize and start closing feedlots and meatworks? The old AMH would still go out and buy to keep the chains going, and their feedlots at or near capacity. I believe that JBS reduce their hours when meat to them becomes too ''expensive". Or have I got this company all wrong?

Posted by mark, 22/03/2010 12:20:45 PM

Less competition equals lower prices. A very sad day for the beef industry in Southern Australia. Lets hope the ACCC does its job & stops the sale.

Posted by Kevin Rude, 23/03/2010 4:02:45 AM

I have no beef with the way JBS has operated since its purchase of AMH. However the proposed takeover of another major processor/feedlot operator does raise some real concerns re dominance in the processing sector and to a lesser extent the feedlot industry, with potential impacts on cattle prices. Surely proposal warrants a very close look by ACCC, assisted by some major inputs by our producer bodies.

Posted by concerned cattle producer, 23/03/2010 7:22:15 AM

I dealt with AMH for years, and in my opinion they had a high level of integrity. They also consistently out quoted competitors, for my cattle. Since dealing with JBS I have found that they are considerably more 'cutthroat' in their attitudes. And the gap between them and their competitors has closed considerably. Their expansion and buying out of competitors has definitely raised a red flag with me.

Posted by Qlander, 23/03/2010 8:22:30 AM

If this isn't another step towards market power what is? A major overseas competitor owning more Australian processing plant... The only losers here are the Australian cattle producers..... wake up folks this is stealth in progress. We need diversification for the market to work properly not foreign rationalisation, and a TPA with limited collective bargaining power for producers.

Posted by pepper, 23/03/2010 4:01:55 PM

Hmmm gees this is definitely a concern. Even from a client of JBS. They have been a good business to deal with, but anything that contributes to minimising competition is a worry.

Posted by yoo Betcha, 23/03/2010 10:06:50 PM

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