JBS S.A. has announced that its JBS USA business has entered into an agreement with J&F Oklahoma in which J&F will own the cattle formerly owned and fed by JBS USA's cattle feeding operation - JBS Five Rivers Cattle Feeding - and JBS Five Rivers then will custom feed those cattle for J&F.
JBS said the new structure would allow it to avoid potential regulations restricting packer ownership of livestock and capital requirements associated with owning hundreds of thousands of head of cattle.
It said JBS Five Rivers would charge customary feed and other fees for finishing J&F cattle.
JBS Five Rivers is the largest cattle feeder in the US, with a capacity to feed 1.5 million head per year, and JBS USA is the third-largest beef processor in the US.
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