September 22, 2011

JBS believes beef demand to increase

According to JBS, global demand for meat will continue to increase at an accelerated pace.

JBS has grown to be worth about US$9 billion today as the world's third largest food company. During the same period, demand for protein globally has grown by 450%.

"Emerging economies are growing faster than they can increase production, so demand is growing, prices will go up, producers will produce more, and both producers and processors will make more money," Wesley Batista, the CEO of JBS said.

The company generated US$40 billion in sales last year in many different countries, including those in Latin America, Asia, North America and the EU.

The Australian operation turned over US$3 billion in 2011. He says Australia is limited by the size of its herd.

"With just 27 million head of cattle there is some limit on how much you can grow. Australia is also becoming more expensive in labour and operation costs, compared to Brazil and even the US."

Batista thinks Australia, Brazil and North America will continue to be the world's three biggest beef producers.