The US cattle supply constraints will continue for three to four quarters according to JBS before herd recovery starts in late 2027. The world’s largest meat producer stated that its US beef operations face ongoing challenges because of restricted cattle supply and the Mexican border shutdown due to a parasite outbreak. The US operations head Wesley Batista Jr. predicts that 1.1 million feeder cattle remain unable to enter Mexico. The US and Mexican officials maintain active discussions about the matter.
The company faces two main challenges because of Chinese pork export tariffs and Brazilian chicken export restrictions to China and the EU because of a bird flu outbreak. CEO Gilberto Tomazoni predicted that unresolved trade barriers would reduce EBITDA at Brazilian Seara by 1.5% if left unaddressed.
JBS achieved its highest-ever Q2 net sales of $21 billion while its Pilgrim’s Pride poultry unit generated a 61% increase in net profit to $528.1 million.
