Hope that JBS plants in Argentina could reopen

27/04/2016
The president of JBS’s South American business, Enéas Pestana, has said the new political situation in Argentina could lead to the packer and tanning group opening up moth-balled abattoirs there.

In recent comments to Reuters, Mr Pestana, who took up the role at JBS in February 2016, said his company is thinking about “gradually” reopening a number of plants it owns in Argentina but has ceased to operate because of taxes on meat exports from that country. Following a change of government at the end of last year, JBS said it may now be possible for it to begin operations again at those plants.

Mr Pestana explained that the company has continued to run one abattoir in Rosario, but said it has been operating below full capacity for some time. He said the company will wait for production levels at its Rosario plant to pick up before recommencing slaughter at its other sites in Argentina. The Rosario plant has a daily slaughter capacity of 2,200 head, but a current production level of 400 head.

Argentina exported around 200,000 tonnes of beef in 2015, but the government has said it is confident this annual total can double by the end of 2017. By way of comparison, the total for 2005 was almost 775,000 tonnes.