My View From The Country

JBS’s Canada Move Cements Its Beef Dominance

JBS’s move to buy XL Foods will cement its dominance in the world's beef trade.

As reported previously, JBS’s move to purchase XL Foods in Canada will help JBS strengthen its dominant role in the global beef trade. It will also make JBS the undisputed king of cattle feeding in North America.

Not surprisingly, producers have raised flags on both sides of the border about the impact of the purchase. However, since JBS already owns U.S. plants and didn't previously have a position in Canada, I would be shocked if a justification can be supported for stopping the purchase.

However, the acquisition of XL Foods by JBS is likely to mean that the readjustment of the big four packers appears to have found an equilibrium. I don't expect we'll see much change in this hierarchy until something dramatically alters the economics of the business for another player to emerge and/or replace another.

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What's My View From The Country?

As a fulltime rancher, opinion contributor Troy Marshall brings a unique perspective on how consumer and political trends affect livestock production.

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Troy Marshall

Troy Marshall is a multi-generational rancher who grew up in Wheatland, WY, and obtained an Equine Science/Animal Science degree from Colorado State University where he competed on both the livestock...

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