Reuters reported, citing JBS executives, that U.S. beef packers will continue to suffer from limited cattle supply for three to four more quarters, with a gradual recovery in the U.S. cattle herd expected to begin in late 2027.<\/p>\n
In comments made after announcing second-quarter results, the company \u2013 the world\u2019s largest meat producer \u2013 said other factors are also affecting its U.S. beef operations, which account for about one-third of its net sales. These include the closure of the U.S. border with Mexico in May due to a flesh-eating parasite.<\/p>\n
Wesley Batista Jr., who leads the company\u2019s U.S. operations, said: \u201cThe situation in Mexico is clearly significant,\u201d adding that the Mexican and U.S. governments are in talks to reopen the border, estimating that about 1.1 million head of feeder cattle are currently unable to cross.<\/p>\n
Among other operational challenges facing the company in the U.S. is its pork division, which has been hit hard since former President Donald Trump launched a trade war with Beijing.<\/p>\n
Meanwhile, restrictions on Brazilian chicken exports to China and the European Union \u2013 imposed since May following an avian flu outbreak in the world\u2019s largest poultry exporter \u2013 are weighing on JBS, which in June launched a dual listing in Brazil and the U.S.<\/p>\n
CEO Gilberto Tomazoni estimated that if these sanitary trade barriers are not lifted, EBITDA in Brazil\u2019s prepared foods division \u201cSeara\u201d could be impacted by up to about 1.5%.<\/p>\n
Nevertheless, Seara\u2019s profit margins remained in double digits despite the disruptions caused by avian flu in the second quarter.<\/p>\n
Thanks to strong results also from its poultry processing subsidiary Pilgrim\u2019s Pride, the company \u2013 now listed in New York \u2013 posted record total sales of $21 billion, while net profit rose by about 61% to $528.1 million in the second quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"
Reuters reported, citing JBS executives, that U.S. beef packers will continue to suffer from limited cattle supply for three to four more quarters, with a gradual recovery in the U.S. cattle herd expected to begin in late 2027. In comments made after announcing second-quarter results, the company \u2013 the world\u2019s largest meat producer \u2013 said …<\/p>\n","protected":false},"author":3,"featured_media":1603,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[681,522],"class_list":["post-1607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bovine-ovine-magazine-en","tag-poultry-livestock-middle-east-africa-magazine"],"yoast_head":"\n