JBS S.A., the world's largest beef company, on Thursday (July 17, 2008) announced it is launching a "bank of cattle breeding" to help farmers develop better cattle. 

The bank, reserved exclusively for cattle breeders, would have a start up capital of US$18.7 million and is expected to serve cattle breeders with specialised products starting July 25.

JBS plans to set up more of such banks in the US, Argentina, Australia and Italy.

The company, which acquired Swift Beef Co, the third largest US beef company in July last year, bought Australia's Tasman Group, another cattle group for US$150 million this April.

The company, which derives about 50 percent of its sales from US assets, suffered a loss of US$4 million the first quarter this year out of group sales of US$3.5 billion. 

JBS is also considering the proposed acquisitions of Smithfield Beef Group and National Beef Packing Co. Company executives say the move would likely clear regulatory hurdles. In March, National Beef announced it would be acquired by JBS in a cash and stock deal worth US$560 million.