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Not all cattlemen happy with JBS deal
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NOVEMBER 5, 2012
Japanese seek assurances of continued wheat quality FILLING GAP Cigi taking lead in reaching out to former CWB customers
CONCENTRATION
R-CALF says the JBS takeover will hurt competition in the U.S. BY SHERI MONK
AF STAFF / PINCHER CREEK
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-CALF USA says it’s not happy with the news JBS USA will operate and perhaps purchase XL Foods, now reopened after several weeks of being shut down due to E. coli contamination. It wasn’t just XL’s Brooks plant on the table — the deal comes with a plant in Calgary and two cow-killing plants in the U.S., one in Idaho and one in Nebraska. While much of the Canadian industry was celebrating the agreement after fearing Lakeside might be closed forever, R-CALF USA is less enthusiastic. The controversial American cattle organization has requested the U.S. government investigate what effect the potential change of ownership would have on the American live cattle market, and on the consumers’ beef market. “The threat to our cattle industry’s fast-receding competitive marketplace is real,” said R-CALF CEO Bill Bullard. In a letter to the U.S. government, Bullard said JBS would become the second-largest Canadian packer, and likely largest or second-largest packer in the U.S. if the deal goes through. Brazilian-based JBS SA is the parent company of JBS USA, and is currently the largest beef processor in the world. “R-CALF USA has long held that both U.S. cattle producers and U.S. consumers already are being exploited by monopsony and monopolistic practices facilitated by the monopolistic structure of the U.S. cattle and beef markets in which JBS USA and only three other firms control approximately 82 per cent,” said Bullard.
ROUNDUP:
Satoru Koyajima holds an example of a product his company manufactures in Japan. He was at the Canadian International Grains Institute to learn more about Canadian durum. PHOTO: SHANNON VANRAES BY SHANNON VANRAES STAFF/WINNIPEG
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atoru Koyajima likes the quality of the Canadian durum, but wonders if it will be there in the future. “We are a little bit concerned now that the Canadian Wheat Board is not operating as it used to,” he said through a translator. But the research and development leader with Japan’s largest pasta producer was in Winnipeg last month to be convinced that he can still rely on Canada. “I’m hoping I can gather some information,” said Koyajima.
That hope is shared by the Canadian International Grains Institute (Cigi), which hosted 15 millers and pasta makers from Japan for a program focused on Canadian durum. “I think the role that Cigi plays, especially in the transition period, is that of assuring customers that Canada is still producing the best wheat and durum in the world, and that Canada can still deliver the best wheat in the world,” said Earl Geddes, the institute’s executive director. Founded in 1972, Cigi’s aim is to create profitable opportunities for Canadian field crops by sharing technical expertise, as well as offering training and support.
But since April, the organization has run programs like this without the direction of the Canadian Wheat Board, which used to be its main source of funds. Previously, the board would look at its customers and decide where a program would be most beneficial before inviting a group to participate. Now Cigi is relying on its farmer and industry advisory committees for direction. “So this is the first time we’ve done it just as Cigi, with advice from our industry partners, so it’s new to us in that regard,” said Geddes.
JAPANESE WHEAT page 6
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