March 27, 2020

Meatpacker JBS SA prepared for COVID-19 possible disruptions

The company said it was not affected by China's port disruptions and has introduced measures to boost exports particularly to China, reported Reuters.

China dropped import tariffs for pork by 33%, beef by 12% and chicken down 4% in March 2020.

Gilberto Tomazoni, JBS CEO said it is too soon to discuss COVID-19's impact on sales of food and logistics as market fundamentals have remained. He cited growing demand in China for meat, as the country continues to boost exports to supplement dwindling domestic supplies.

Tomazoni said the company will not cut short investment plants, maintain its food production and sustain workers' jobs.

Company executives said meat supply in the US will return to normal after grocery shelves were empty as consumers stocked up on food because of COVID-19 imposed restrictions.

JBS estimates it will export 30% of China's pork from its US facilities this year, with exports to increase thanks to existing US agreements with Japan and South Korea.

Earlier this week, JBS reported a 332% fourth-quarter net profit supporting by surging meat demand from China. Its fourth-quarter net profit was 2.43 billion BRL (~US$482.5 million; 1 BRL = US$0.20).

Company shares jumped 7% after it reported its strong financial performance but slowed down later to a 3% high.

-      Reuters