Thursday, January 18, 2018

JBS sells U.S. feedlots

JBS USA Food Co. has reached an agreement to sell its Five Rivers Cattle Feeding operations in the United States for $200 million.

Five Rivers runs 12 beef feedlots – one in Idaho, four in northwest Texas, five in Colorado and one each in Kansas, Idaho and Arizona.

The buyer is investment company Pinnacle Asset Management.

JBS is selling assets to raise $1.8 billion to reduce debts and start paying a $2.5-billion fine for bribing Brazilian government officials.
JBS is the world’s largest meat-packing business.

It got $40 million when it sold the Alberta feedlot it bought as part of the $100-million purchase of XL Foods Inc. after it was hit by the largest-ever Canadian recall of beef because of food poisoning.

The deal Five Rivers deal commits the owners to marketing cattle to JBS packing plants.

Pretty soon the majority of farming will be owned by pension funds and asset management companies.