Brazilian Meat Giant JBS-Friboi Exports Expected to Grow More in US than Brazil

Brazilian meat multinational JBS-Friboi Brazil's JBS-Friboi group, a meat producer and the world's leading bovine slaughterhouse, increased its export volume by 275% in the second quarter this year, compared with the same period of last year. From April to June 2007, the group shipped 112,200 tons, whereas, during the same period this year, shipments totaled 421,200 tons.

The figures include not only the company's operations in Brazil, but also those in Australia, the United States, Argentina and Italy.

Revenues from exports totaled US$ 1.6 billion, growth of 273%. The leading market was Japan, with an 18% share, followed by the European Union, with 16%, and Russia and Mexico, with 10% each. Out of total export revenues, US$ 788.2 million came from JBS-Friboi units in the Mercosur region.

The president of the group, Joesley Mendonça Batista, stated during a press conference that in the coming months, exports originated from the United States should grow more than those from Brazil.

"The current situation in the United States favors for exports to all regions," said the company's CEO for the United States and Australia, Wesley Batista, at another press conference.

He cited the Middle East among the markets to which exports from the United States are favorable. The group exports to the Arab world and even owns a branch in Egypt, an Arab country located in North Africa. However, the region does not rank among the leading markets for JBS-Friboi.

In the second half this year, 63% of the group's sales were to the domestic market, where it maintains its units, and 37% were shipped to foreign countries. Mendonça Batista believes that in the next few months, 25% of revenues should come from foreign trade, and the remaining 75% from the domestic market.

The president at JBS-Friboi stated that the group is prepared to continue growing, even though he forecasts a not-so-favorable scenario for the activity in Brazil during the second half.

One of the problems facing Brazil's slaughterhouses is low herd availability, which has led the price of beef to rise. That, in turn, has increased costs for meat producers, lowering their profit margins. This phenomenon occurred with JBS in the second quarter already.

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 5%. According to Batista, the margin is explained due to the price of the arroba of cattle beef with bones (approximately 32 lbs), which is currently around US$ 50. Still, the group promises to keep on expanding its capacity and slaughtering.

According to the president at JBS-Friboi, the company transferred its cost increase over to exports as much as it could. Now, according to him, prices are going through the roof.

"We went up and up, until we found ourselves alone in the market," he claims. According to him, there came a point when prices were on a level with those of other competing countries. "Now, we can only increase our prices if the others do so as well," he says.

Anba

Tags:

  • Show Comments (2)

  • Frank GU

    natural sausage casings
    We are one of the biggest producers and direct exporters of natural sausage casings in China.
    We mainly supply salted hog/goat/sheep casings and relative products made in China. Our casings have been exported to many countries in Europe,Asia,America and Africa.
    Our Approval Veterinary No. of EU: 3200/05059. In 2007, we had approved by ISO & HACCP. We have exported our casings to EU & USA for more than 10 years.
    And also, our company can export our casings to Brazil too.
    Our main factory in Rugao is specialized at hog casings while our branch factory in Xuzhou at sheep/goat casings.
    We can produce casings in various grades(ALC/AA, A, AB…) and specifications(including tubed casings) according to buyers’ demands.
    In 2008, our new factory for imported casings raw materials was finished where we can select 20000 hanks per day.
    If you are interested in our products or have some raw materials to be selected,contact me directly please. We shall send you our best offers for your reference.
    Awaiting your prompt reply.
    Best regards,
    Frank GU
    cell phone: 0086-1360-1497-369
    e-mail: hongshan_gu@hotmail.com

    info@qfcasing.com

    http://www.qfcasing.com
    Rugao City Qingfeng Casing Co.,Ltd.
    Jiangsu Prov.,China
    Tel: 0086-513-87504299,87508869
    Fax: 0086-513-87502719,87517520

  • Lydia Hernandez

    Imperial Corn Beef in Egypt
    Good Afternoon,

    I will like to know where is located the JBS office in Egypt.

    Thank You

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Disturbing Handcuffs Threaten Brazilian Media

As photos, the sequence is nearly run of the mill. A person in handcuffs ...

Brazil and Venezuela Join Forces to Condemn Honduran Elections

The presidents of the Mercosur countries – Brazil, Argentina, Uruguay and Paraguay – and ...

Musings on an Interview with Sean, the American Boy Abducted to Brazil

Everyone knows that "Sean" doesn't want to leave Brazil and we also know that ...

Brazil’s Ethanol Will Power Japan’s Car Fleet

Brazil agreed Monday to help Japan develop the ethanol industry and thus reduce the ...

Brazil Guarantees: Growth Will Be Over 4% in 2004

Brazilian economic growth this year is guaranteed and will be over 4%, said minister ...

Folly

To wage a war on terrorism is an absurd idea. The USA Patriot Act ...

Carla Hassett? You’ve Heard This Brazilian. We Bet.

{mosimage}Sitting in a sidewalk café in Los Angeles, Carla Hassett is hard to miss. ...

Brazil Industry Grows 3.3% Led by Autos, Metallurgy and Food

The sectors of automotive vehicles, basic metallurgy, and food and beverages have led Brazilian ...

Austria President Signs Technical Cooperation Accords in Brazil

The President of Austria, Heinz Fischer, was received Monday, September 19, by Brazil’s President ...