Market analysts and agricultural economists hold mixed views of the JBS SA (JBSS3.BR) purchase of National Beef and Smithfield Foods' (SFD) beef division.
If the deals are completed, JBS would be able to slaughter about 42,000 head of cattle on a daily basis in the U.S., including fed cattle and cows. Cargill Meat Solutions and Tyson Foods Inc. (TSN) can slaughter about 29,000 and 28,000 head, respectively, according to industry analysts.
Many analysts and commodity brokers question whether the federal government will allow both deals to be completed because JBS would have such a large share of the U.S. cattle and beef market. The current U.S. daily cattle slaughter capacity is estimated around 127,000 to 130,000 head.
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