22 February 2009 00:29:57 22 February 2009 00:29:57 |News
Brazil-The worlds largest beef processors.
BRAZIL-JBS WALK AWAY FROM NATIONAL BEEF DEAL. Had the deal gone through between JBS-Swift and National Beef Packers, it could have spelt disaster for the Brazilian beef giant. The price offered in March of last year and the market today are as different as chalk and cheese. The Department of Justice and the farmers groups who opposed the deal, must feel as foolish now as the Yahoo board of directors who refused the Microsoft buy out, or the Rio Tinto board who refused $60 per share from BHP Billiton to see the shares tumble to $15 today... There have been 14 banks collapse in the United States in the 7 weeks of 2009, while indeed the stock market has been corrected to 7,500 points it took 4 months to long for the brokers to realize the party is over. The $787 billion stimulus package would be better spent on giving $1,400 to every man woman and child on the planet, some experts believe. JBS can spend their money far better in Europe than the USA, which the loss of US$23 million last quarter will confirm.. The Europeans who refuse to electronically tag there own sheep, will be begging for Brazilian beef before the end of 2009. The protectionist Irish farm groups have had a good taste of reality this year in the dioxin fiasco, which was very much a case of what goes around comes around. JBS Are currently slaughtering 80,000 cattle a day, with their existing facilities, they need National Beef Packers like a hole in the head. The $560 million set aside for the purchase in the United States, has earned 40% in the last 10 months on currency exchange alone.