Strong US demand dynamics for meat has been supporting the prices for Brazil’s meat industry

There has been a significant increase in U.S. demand for beef, pork, and chicken, which has helped offset financial pressures from rising beef production costs due to a reduced cattle supply. Stable grain prices and favorable weather conditions supporting soybean and corn harvests have further bolstered the company's market position. Internationally, strong demand for Brazilian beef has enabled price improvements, despite higher cattle costs in Brazil.

In a recent earnings call, Wesley Batista Filho, the president of JBS USA, highlighted the company's strong performance in the U.S. market, with robust demand across beef, pork, and chicken segments. This demand surge is playing a crucial role in helping JBS manage the financial challenges associated with the beef sector, specifically the tight profit margins. Batista Filho attributed these challenges to a current dip in cattle supply within the U.S., which has led to increased costs of beef production.

Expanding on the company’s performance, Gilberto Tomazoni, the global president of JBS, offered further insights into the market dynamics. He pointed out that the demand for chicken remains strong and that grain prices have been stable, factors that together suggest the ongoing positive cycle in this segment is likely to continue. Tomazoni also expressed confidence in the stability of grain prices moving forward, crediting favorable weather conditions that have been beneficial for soybean and corn harvests, thus preventing any major cost surprises.

Tomazoni further discussed the international market, particularly the external demand for Brazilian beef, which has been allowing for price improvements in foreign markets. This is particularly significant in light of the recent increase in the cost of Brazilian cattle, which has put additional pressure on the company's pricing strategies abroad.