January 10, 2019
US subsidiary of Brazil's JBS receives US$5 million as part of farm bailout package
As part of arrangements pertaining to a US$12 billion farm bailout package, JBS USA will sell about US$5 million worth of pork products back to the USDA, records published by the Agriculture Marketing Service revealed.
The meatpacking company, which is owned by Brazil's JBS SA, has around 73,000 employees and 44 plants in the US, according to The Washington Post.
In order to secure government monies, JBS USA depends on a provision in the farm bill which states that the government will support farmers affected by the US trade war by buying surplus products from them. The US will buy an estimated US$1.2 billion in surplus products, with more than US$500 million of it coming from pork producers.
In a statement to The Washington Post, the USDA commented that it "only buys American commodities, produced on American farms by American farmers."
"Approved vendors who choose to participate in USDA food purchasing programmes, regardless of their business structure or domicile, provide direct benefits to US farmers and ranchers," a USDA spokesperson said.
- The Hill
