Dive Brief:
Dive Insight:
With beef prices on the rise, meat companies are exploring new avenues to satisfy the protein needs of American consumers.
JBS recently acquired a 50% stake in Mantiqueira Brasil, a prominent egg producer in South America, as part of its strategy to enter the U.S. market. This move follows JBS’ efforts to venture into seafood and alternative protein sectors.
Egg producers have been enjoying substantial profits due to high prices and the demand for protein. However, the spread of bird flu has affected smaller producers like Hickman’s, which had to lay off 85 workers after losing its entire chicken flock. The company, with most of its farms in Arizona, faced a significant setback as it couldn’t meet orders for the first time in 81 years.
Glenn Hickman, the CEO of Hickman’s, expressed reluctance to risk such losses again and sees JBS as an opportunity to rebuild and expand the company’s operations. Murilo Scarpa Pinto, president of Mantiqueira USA, views the acquisition as a stepping stone for the company’s growth in the U.S.
JBS has been under pressure to diversify its portfolio due to cattle shortages and escalating beef prices impacting its earnings. Despite recording record sales, JBS Beef North America reported a 50% drop in gross profits attributed to increased production costs.