JBS says it will keep growing
10/03/2010
Brazilian packer and tanning group JBS has announced its results for the fourth quarter of 2009 and for the full year.
The group achieved revenue of around US$19.4 billion in 2009, an increase of 13.1% on the previous year.
Chief executive, Joesley Mendonça Batista, also said the completion of JBS's acquisition of competitors Bertin, which it completed towards the end of the year, was one of the highlights of 2009. He commented: "We were able to merge our business with Bertin in a manner which served the needs of both. While we continue to control our business, we were able to bolt on a company of a size and scale that will be complementary towards accelerating our growth strategy, not only at primary production level but also downstream in the direction of our consumers. We now have a solid base to add value to some of our by-products, such as hides and tallow, not to mention our new dairy business about which we are extremely optimistic."
Mr Mendonça said the Brazilian cattle herd had "turned the corner" in 2009, and said that as packer firms continue to rationalise costs and maximise scale, this trend should continue in 2010. He forecast that growth in 2010 would also come from an economic recovery in important export markets, increased consumption in the domestic market and rising prices caused by limitations in the supply base. This is a reference to meat, but it could apply to the supply of raw hides and wet blue as well.
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