National Beef packing profits rise US$61 million  in Q3

US-based National Beef Packing Co. LLC reported a significant US$61 million increase in net income during the 14 weeks ended May 31, mainly due to an extra week in the reporting period this year.

Net income totaled US$74.5 million compared to US$13.6 million from the 13 weeks ended May 26 last year.

Average volume of cattle processed per week fell by 7 percent in the third quarter but average sales prices per head rose by 3.4 percent, said the country's fourth-largest beef processor.

This is because improved beef demand, and subsequently, higher sales prices, which allowed them to override high costs of live cattle, the Kansas City-based company said in its Securities and Exchange Commission report.

Net sales increased by US$50 million to US$1.53 billion in the quarter, while live cattle prices declined 5.8 percent and average cattle weights increased 2.1 percent.

Earlier in March, the company announced it would be acquired by JBS S.A in a cash and stock deal totaling US$560 million.

Brazil-based company JBS S.A is one of the world's largest producers of beef and beef by-products with 42 plants worldwide.