JBS forecasts U.S. cattle herd recovery beginning in late 2027
Beef processor warns of continued tight supply for several quarters
BRAZIL – JBS expects U.S. beef packers to continue facing limited cattle availability for the next three to four quarters, with gradual improvements in the herd beginning only towards the end of 2027, company executives said.
The announcement came after the Brazilian meat company, which is the largest globally, reported its second quarter financial results.
According to JBS, its U.S. beef division, which represents around one third of overall net sales, is under strain from both domestic supply issues and trade restrictions.
One major disruption has been the closure of the U.S. border with Mexico in May after authorities detected a flesh-eating parasite in cattle imports.
Wesley Batista Jr, who oversees JBS’ U.S. business, said the situation is significant, adding that discussions between the two governments are ongoing over a potential reopening.
He estimated that approximately 1.1 million head of feeder cattle remain unable to enter the U.S. market as a result of the ban.
Alongside beef, JBS also continues to face difficulties in the pork sector, which has been affected since former President Donald Trump initiated a trade conflict with China.
The company is also dealing with restrictions on Brazilian chicken exports imposed by China and the European Union after bird flu outbreaks earlier this year.
Executives said those trade barriers could weigh on the Seara prepared foods division in Brazil, with Chief Executive Gilberto Tomazoni warning that earnings before interest, tax, depreciation and amortization may be reduced by about 1.5 percent.
Even so, margins at Seara remained in double digits through the second quarter despite the disruptions caused by bird flu.
Financial Results
Despite these challenges, JBS reported record net sales of US$21 billion in the second quarter, with net profit rising nearly 61 percent to US$528.1 million.
Strong performance from its U.S.-based poultry processor Pilgrim’s Pride contributed to the company’s overall results.
JBS recently completed a dual listing in Brazil and the United States, a move that it says is aimed at expanding access to capital markets.
Executives reiterated that the company’s long-term climate strategy remains in place, with commitments to cut emissions across operations through 2040.
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