JBS Eyes US Beef Market Dominance as Profits Soar 61%
JBS, the world's largest meatpacker, has reported a significant increase in profits, with a 61% rise in net income in the latest quarter. The Brazilian company, which has a strong presence in the USA, is eyeing the top spot in the American beef market.
The USA beef industry is dominated by a few major players. In 2021, four companies produced 81% of the country's beef. JBS, which also operates in pork and poultry, is looking to solidify its position as the leading beef producer in the US. The company's wider meat and food business in the US accounted for half its revenue in 2024.
Wesley Batista, a billionaire owner of JBS, believes the US isn't producing enough beef to meet Americans' demand for protein-rich diets. This demand is being driven by various factors, including the growing use of GLP-1 weight-loss drugs and underinvestment in the cattle herd a decade ago. As a result, the US is facing the highest beef prices in history and has seen a 30% increase in beef imports in the first half of 2024 compared to the same period in 2023.
JBS, with its almost $2 billion in profit in 2024, is well-positioned to capitalize on the growing USA beef demand. The company's ambition to become the top beef producer in the US could help it further boost its profits, given the current market dynamics and the country's reliance on imports to meet domestic demand.
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