January 4, 2001

The National Cattlemen's Beef Association is taking a somewhat wary approach to the announcement that Tyson Foods Inc. will buy giant beef processor IBP Inc. George Hall, NCBA president, says the organization is "intensely interested" in the deal.

"NCBA is intensely interested in the recent announcement that IBP Inc. has accepted Tyson Foods Inc. bid to purchase the company. Activities surrounding IBP, as the largest beef processor worldwide, are important to the beef industry's continued success in increasing beef demand. While Tyson has been very successful processing and marketing poultry, beef is unique and we are interested in the company's vision for the beef industry," Hall said in a statement.

"We look forward to meeting with Tyson officials as soon as possible to learn more about their plans for IBP. We expect this merger to go through the appropriate regulatory approval process. We will closely monitor the process," he added.

NCBA wants five issues examined in "any merger," Hall says. The are a positive corporate culture for a smooth management transition; good relationships with producers, labor and customers; a strong financial portfolio for the company; a "vision" for the beef industry consistent with the industry long range plan as developed by an industry-wide planning committee, and a competitive market structure for "fair and open markets" for live cattle.

Sen. Charles Grassley (R-IA) also commented on the Tyson-IBP deal, voicing concern that Tyson's purchase "will only further an increasingly concentrated meat packing industry and hurt independent producers looking to get fair prices for their products."

Grassley says it also is important that the deal "doesn't unfairly increase the prices consumers pay at the meat counter." He plans to contact the Justice Department and Federal Trade Commission "urging vigorous scrutiny" of the purchase.