March 26, 2021

JBS projects strong meat demand from China this year

Major Brazilian meatpacker JBS SA projects strong meat demand from China in 2021 as China still recovers from an African swine fever (ASF) outbreak that decimated its domestic swine population, Reuters reported.

JBS executives said it is unclear when China will fully recover to pre-ASF levels, so it will continue to rely on food imports. They were speaking on a conference call after the company published results.

They said this will benefit the company's exporting plants in the United States and Brazil.

André Nogueira, CEO of the company's US operations, said China was the export destination for one-third of the company's exports in 2020, with more room for growth.

JBS reported a 65% higher fourth-quarter profit compared to a year earlier thanks to strong exports to China, steady beef demand in the US and good sales volumes in Brazil.

The company executives said there is a possibility to grow via acquisitions using its strong cash positions but did not state where or when it will happen.

In Brazil, the executives said high corn prices will affect JBS' Seara processed foods division's margins.

- Reuters