U.S. Congress Urges President Biden to Address Meat Conglomerates’ Corporate Greed, Highlighting JBS’s Role in Rising Food Prices in America
New York, NY (June 3, 2024) – Plans for JBS’s proposed Initial Public Offering (IPO) continue to flounder as sky-high meat and poultry prices emerge as a pivotal political issue in the presidential campaign, shining a harsh spotlight on the convicted criminals – Joesley and Wesley Batista – who recently muscled their way onto JBS’s board of directors despite their history of corruption.
While former President Donald Trump now routinely hammers away at the high prices of meat on the campaign trail, 40 Democratic members of Congress led by Senator Elizabeth Warren and Representative Jim McGovern sent a letter to President Biden urging him to address rising food prices driven by corporate greed – and specifically calls for the need to prosecute the “Big Four” meatpackers, which includes JBS, for price fixing and other anticompetitive behavior, if merited.
“The Batista brothers have built their empire on the backs of Brazilian resources and people, exploiting every opportunity for personal gain while leaving a trail of economic and environmental destruction. Their attempt to list JBS shares on the New York Stock Exchange – which will give the Batistas nearly 90 percent control of the company – is a blatant move to abandon Brazil and escape accountability,” said Kimberly Spell, Executive Director of Ban the Batistas.
“But their IPO dreams continue to flounder as the presidential campaign’s focus on unprecedented food prices brings renewed scrutiny on JBS’s track record of investigations and settlements for price fixing, environmental greenwashing, and the Batistas’ history of bribery and corruption. The Biden Administration must call on the U.S. Security and Exchange Commission (SEC) to reject JBS’ IPO and stand against corporate greed and corruption,” Spell continued.
The Batista brothers, who control more than one billion JBS shares, were recently elected to JBS’s board despite failing to win support from owners of a majority of shares they do not control. In that election, a majority of non-Batista shares either cast votes against their elections or withheld their support by abstaining.
“The Batistas must believe that crime pays, given their recent power plays. But when the owners of a majority of the JBS shares they do not control fail to support their election to the board, it’s clear their day of reckoning is coming. They will soon find out that in America, they will be held accountable for their actions when their IPO stalls for good,” Spell said.
Congressional Intervention
The recent letter from Senator Elizabeth Warren and Representative Jim McGovern, signed by 38 other members of Congress, urges President Biden to address rising food prices driven by corporate greed, specifically pointing to the “Big Four” meatpackers as key offenders. The letter highlights critical issues driving up prices for American consumers:
- Market Domination: Four grocery retailers account for over a third of national grocery sales, and four food companies control more than 60% of sales in most grocery categories.
- Record Profits: Corporations like JBS have been making record profits while CEOs openly admit that their price hikes exceed inflation. Between 2020 and 2021, corporate profits accounted for more than 50% of food price increases.
- Impact on Families: Grocery price increases have hit low-income families hardest, with the bottom fifth of the income spectrum spending 25% of their income on groceries.
- Call for Action: The lawmakers emphasized the need for robust action against rising food prices driven by corporate greed, including encouraging the U.S. Department of Justice to prosecute the “Big Four” meatpackers.
About Ban the Batistas
Ban the Batistas is an advocacy group fighting to protect American farmers, ranchers, consumers, and investors from the risks of a U.S. stock listing by JBS S.A. and the unchecked power grab by its majority shareholders, brothers Joesley and Wesley Batista. Learn more at www.banthebatistas.com.
