Cargill selling off

By Mike Masterson

Posted: July 7, 2015 at 2:57 a.m.

Well, slice my pork chops thick and fry my bacon crispy, a Brazilian-based protein producer has agreed to purchase Cargill's U.S.-based pork business for $1.45 billion.

The news story appeared in the paper late last week.

And yes, that would be the same Cargill based in Minnesota that supplies and supports the controversial C&H Hog Farms at Mount Judea, which operates smack in the middle of the Buffalo National River watershed.

JBS USA Pork, a unit of Sao Paulo, Brazil's JBS SA, made the offer, which still has to leap regulatory hurdles before being finalized. JBS already is majority owner of Pilgrim's in the U.S., and owns Tyson poultry operations in Mexico and Brazil.

The news account also said JBS USA will gain two Midwestern meat-processing plants, one in Iowa and the other in Illinois. It also would gain four hog farms (what say we call them what they truly are, swine factories). Two are in Morrilton and Umpire in Arkansas, and one each in Oklahoma and Texas. There also are five feed mills involved in the deal: Two in Missouri and one each in Arkansas, Iowa and Texas.

Curiously, there was no mention in this sale of that hog factory perched on a hill above Big Creek, a major tributary of the Buffalo flowing just six miles downstream. I presume that means the good folks at Cargill could be holding onto that operation.

Should JBS inherit this factory, many out here naturally wonder what it will do to resolve the legitimate concerns of folks across the country who cherish the purity of our country's first national river.

Meanwhile, in their press release, JBS executives sounded practically tickled pink by their mega acquisition: "This operation is in line with JBS' strategy to grow its portfolio of prepared and value-added products, expanding the company's customer base both in the domestic market and internationally."

Todd Hall, senior vice president of Cargill, seemed equally enthused. "The strengths of the JBS and Cargill pork businesses are complementary," he's quoted saying. "Together they promise to offer enhanced service to customers and more opportunities for employees and hog producers while providing an important source of protein to consumers around the world."

Hall continued: "The professional and focused manner in which JBS approached Cargill demonstrated to us that they place a great deal of value on growing this part of their company to better compete in the marketplace and are willing to invest in its future. JBS is acquiring a business with excellent people and fixed assets, and an established track record of success."

Martin Dooley, president and COO of JBS USA Pork, which processes more than 50,000 hogs daily at facilities in Iowa, Minnesota and Kentucky, said, "This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers. The strength and success of Cargill's pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition ..."

Another aspect to this deal is Cargill's pledge never to place another of its potentially polluting hog factories in the hallowed Buffalo watershed. Are the men from Brazil, if it applies, ready and willing to honor that pledge? Gov. Asa Hutchinson's proposed amendment to two regulations that would create a five-year ban on hog factories in our watershed looks better than ever to me.

 

Mike Masterson's column appears regularly in the Arkansas Democrat-Gazette. Email him at mikemasterson10@hotmail.com.

Editorial on 07/07/2015