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What's jbs's play here
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Posted 4/2/2021 09:03 (#8930171)
Subject: What's jbs's play here

Jbs gave notice to our producer group once our contact expires they will not renew or renegotiate. Still two years down the road but our group supplies 1.9 million head to jbs per year. Are they going for more vertical integration or divide and conquer? Probably both. Our group has about 200 producers but not sure exactly how many go solely to jbs as there are other packer agreements as well. I know I'm small enough, without a group like this, I have absolutely no negotiating power at all and would have to take whatever pricing offer they give, if they even give me that option.
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