August 16, 2012

JBS SA anticipates that Brazil's meat exports are likely to increase although prices may drop.

JBS posted an US$83.64 million second-quarter profit on Tuesday (Aug 14), slightly beating analysts' estimates.

The company increased revenue by boosting beef processing capacity and starting poultry production in Brazil after it leased Frangosul plants from France's Doux.

The company's head of investor relations, Jeremiah O'Callaghan, said in a conference call on Wednesday (Aug 15) that the Frangosul plants were operating at 90% capacity.

Tapping into poultry production was reminiscent of the aggressive takeover strategy the one-time family butcher pursued to rise to the top of the meat industry. JBS had slowed expansion efforts in the past few years.