R-CALF USA has made its concerns about the plans of Brazilian-owned JBS to purchase National Beef - Smithfield Beef Company and Five Rivers Ranch Cattle Feeding. Now more than 70 other groups have joined with R-CALF to sign a letter urging the Department of Justice to consider blocking the deal. According to the letter - the JBS purchase would harm price, choice, innovation and competition in the beef industry.

The letter states the primary focus of concern is with the buying market for cattle - but goes on to say reducing the number of major beef processors from five to three will likely have adverse effects on consumers as well. At the current level of market concentration - the letter notes an already diminished volume of cash market purchases caused by the ongoing vertical integration achieved through packer-owned cattle, contracted cattle and relationship cattle. R-CALF Vice President Randy Stevenson says the proposed JBS deal would further constrict the cash market.

Finally - the letter concludes the acquisition will not result in efficiencies or benefits. The signatories say beef packing is a mature industry in which competition must be preserved.