Beef brings growth for JBS amid concerns about chicken
15/08/2012
Across the different beef divisions in the group (in the US, Australia and South America), JBS slaughtered almost 7.8 million head of cattle during the first half of this year, with a total of more than 4 million for the second quarter. This represents an increase of 9.8% on the kill for the first quarter of 2012 and of 5.1% for the second quarter of 2011.
Looking only at the second quarter of 2012, the company said the highest level of financial growth had come from its business in Brazil and other parts of South America, which is where its tanneries are located. Owing to improved sales and a higher level of cattle slaughter, the company was able to increase its revenues in this region to more than $2.1 billion over the three-month period, showing growth of 19.4% compared to the second quarter of last year.
JBS said it was confident that the cattle cycle in Brazil would continue to improve and that higher numbers of cattle would come to slaughter there in the years ahead.
Beef in the US and Australia also brought in more than $2.1 billion in the second quarter of 2012, an increase of 7.6% on the same three-month period last year.
Revenues from pork products in the US were down by 0.2% on the second quarter of 2011 mainly, JBS said, owing to an excess of supply over the three-month period in 2012. As for its chicken business in the US, revenues were flat ar around $1 billion. However, JBS warned that its chicken business was feeling the effects of rising grain costs that have come into force in the past two months and said this would present the US chicken sector with “a very challenging environment”, especially in the fourth quarter of 2012.
Share this story:
