Breaking News:
- The world’s largest meat company, JBS, is making a bold move into the egg industry with a strategic merger in South America.
- JBS announced on Monday its acquisition of a 50% stake in Mantiqueira Brasil, a major egg producer in South America known for producing 4 billion eggs annually. The company will be co-owned by JBS and Mantiqueira founder Leandro Pinto.
- This expansion allows JBS to diversify its product portfolio, which already includes seafood and alternative proteins. For Mantiqueira, the merger opens doors to new markets and positions them as a strong competitor internationally.
Insights:
JBS’s entry into the egg market comes at a time when U.S. egg prices are on the rise due to bird flu outbreaks affecting supply. Companies like Cal-Maine Foods have seen significant profits amid high demand and limited availability.
JBS Global CEO Gilberto Tomazoni emphasized the growing global demand for eggs, stating that the investment in Mantiqueira aligns with the company’s long-term strategy of venturing into new protein sectors.
While JBS faced challenges with its plant-based protein brand Planterra, the company remains committed to exploring non-traditional meat categories. This includes recent investments in salmon farming in Australia and the development of lab-grown meat facilities in Spain.
The partnership with Mantiqueira presents a lucrative opportunity in a market with stable demand. Eggs are considered a staple in diets worldwide, with consumers showing consistent purchasing behavior regardless of price fluctuations.
Mantiqueira’s presence in Brazil, along with its popular brands Happy Eggs and Fazenda da Toca, positions the company for international expansion. The collaboration with JBS aims to tap into new markets, including the United States.
Mantiqueira CEO Márcio Utsch expressed intentions of targeting the U.S. market for cage-free eggs with the support of JBS’s extensive poultry infrastructure. The partnership is expected to fuel growth and competitiveness on a global scale.
“With JBS’s backing, we are poised for success,” said Pinto. “Our leadership in Brazil combined with JBS’s expertise will propel us to become a key player in international markets.”