JBS Takes Over Lakeside!

[ASRG]

Thanks Cam
I guess the creditors and people sueing would have to go after XL Inc. then?
Could they go after Nilsson Brothers Inc. as well?
Why do I get this feeling Nilssons are going to slide out the back door on this one?

[cpallett]

Yup, they will have to go after XL Foods Inc.

The cornerstone of corporate liability is that it is limited to the corporation itself and does not flow over to the owners, directors or shareholders except in very unusual circumstances.

[kato]

Since this all started, everybody here has always said that there was more to this thing than what we were being told. This answers a lot of questions.

Why no public apology or effort to make things right? Because they were going away anyhow.

Why so difficult to find someone in charge at XL to ask questions of? Because they were all in meetings with JBS.

Why no public inquiry? Because they were going away anyhow. And it looks like the politicians were in on this one.

Why was our so called Ag Minister so elusive? Because he knew all about this deal.

I'm happy that there won't be a total shutdown of the plant right away, but I'm worried about the future.

Have we jumped out of the frying pan and into the fire? I guess time will tell.

[ASRG]

Now maybe I'm being too much of a cynic here or something, but how long was this JBS deal being cooked up? I doubt it only came into play over the last few days? How long were they talking? Were they talking long before September 3rd?
Was a "crisis" needed to get around a lot of controversy about foreign ownership and packer concentration....lets face it this deal will get a rubber stamp from Ritz and Harper....now!
Was a "crisis" needed to walk away from debts that couldn't be paid? Debts that the Alberta government guaranteed?
Was this a case of taking advantage of a "crisis" or was it a manufactured "crisis"? What role might the CFIA play if this was a manufactured "crisis"? How about Gerry?

We need an independent inquiry into this thing. An inquiry headed up by a judge!

[gcreekrch]

Why? XL is a private company. If any of us had a problem that caused us to sell our properties would it be a public issue?
I too wonder about the whys and hows in this issue but other than govt. involvement this issue is none of anyone's business but the 2 players involved.
Am I happy with the situation and do I think it is a change for the better? No.

Still doesn't make it my business.

[grassfarmer]

JBS won't be buying into this deal to secure the two
US XL plants - they already have huge amounts of
underused kill capacity in the US. Maybe instead
they see an opportunity to break out of the US
market - maybe see an opportunity to market
Canadian beef off the north American continent?
Maybe wishful thinking but I'm a glass half full kind
of person.

[ALLFARMER]

Immediate enhanced access to world markets.

Under what scenario would cattle prices go down
by this????

They would soon find a further shrinking calf
supply.

[GaryE]

I do think there is potential now for the development of Pacific markets...JBS Swift can supply all of the US products it needs and its easier to get to Japan from Vancouver than Brazil...Hats off to Nilssons for getting in another player..good move. They did have oversights in their plant and it's caught up to them and now they've paid the piper...
I can't say the same for CFIA We still need answers for their "non-existance" when independent audits showed discrepancies in the XL plant as early as last May. We need accountability..not more regulations...we need confidence that our food surveilance system works...not more legislation...We need answers soooo.. Sheri, keep asking the questions.

[ASRG]

gc: Nilssons will walk away from their creditors (Alberta government-the fact is they got a $107 M loan-only put out $55 M up front-have they paid back the original XL loan of $24 M...again to AB gov)?
Yea....I think it just might be our business?
As Gary says the CFIA needs to answer a few questions! Nilssons needs to answer some questions! Maybe JBS needs to answer some questions?
Where is Jerry Ritz.....why isn't he asking any questions?

[grassfarmer]

Or you could ask that the other way around Allfarmer

"Immediate enhanced access to world markets.
Under what scenario would cattle prices go UP
by this????"

They say competition doesn't really exist when less
than 4 companies process more than 40% of the
countries beef. So remaining with two processing 90%
isn't going to upwardly influence prices any time
soon.

[ALLFARMER]

Ya I wouldn't say prices are going to go up
anytime soon. I think this whole situation
indicates the plant was at best not very profitable.
I figure this buyout won't equate to lower prices.

If guys with money....Cor Van Raay, the Price
family and now Brian Nilsson can't run a profitable
plant who Domestically speaking could?

[grassfarmer]

JBS are familiar with selling branded hormone and
antibiotic free beef among others. Here are their US
brands.

http://www.jbssa.com/Brands/Beef/default.aspx