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CADE to Decide on JBS Beef Slaughter Plant Expansion

15 May 2014

BRAZIL - Approval for Brazilian meat processor JBS to lease three of the Rodopa cold store and processing plants is to be made by the Court of the Administrative Council for Economic Defence (CADE).

The decision to refer the competition approval to CADE was taken by the Superintendent General.

JBS won the contract to rent the Rodopa plants in the municipalities Santa Fe South (SP), Cassilândia (MS) and Cachoeira Alta (GO) in December last year.

The move will raise the number of slaughter plant run by JBS in Brazil from 44 to 47 out of a total of 1,500 slaughterhouses in the country.

"We hope the CADE commissioners will look favourably on the deal, since there are more than 1,500 processing plants in operation in Brazil.

“Renting the three units does not represent a significant concentration in the beef market and does not result in economic losses to the industry, on the contrary, it helps the economic and social efficiency of the cities where they operate," said Francisco de Assis e Silva, executive director of institutional relations for JBS.

CADE has also announced the rapporteur in the case will be Márcio Oliveira.

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