When JBS purchased the Smithfield Beef Group last year, it also purchased 100 percent of Five Rivers Cattle Feeding, which owns 10 feedlots with a capacity of 1.5 million head. Prior to that purchase, Five Rivers was an integrated business that operated as both feedlot and cattle owner. JBS said it evaluated the benefits and challenges of retaining that business model under JBS
Due to existing and future potential packer-ban legislation at the state and federal levels — legislation that prevents beef packers from owning cattle — JBS
JBS made what it calls “a strategic decision” with J&F Oklahoma to split ownership of Five Rivers. J&F will own the cattle and JBS
JBS Five Rivers, a subsidiary of JBS
J&F Oklahoma Holdings owns up to 800,000 head of cattle on feed at the 10 feedlots and will pay JBS Five Rivers a market-based daily cattle-feeding “hotel fee” for the care and maintenance of its animals.