Executives with JBS are optimistic that the Brazil-based multi-protein company will be able to benefit from the African swine fever ASF situation.
Speaking during the company’s first quarter earnings call on May 14, JBS Global CEO Gilberto Tomazoni and Guilherme Cavalcanti, addressed ASF and its potential impact on the company.
“Management continues to closely monitor the events related to African swine fever in Asia, and believes that the environment for global trade of pork and potentially other animal proteins may change, with the magnitude of the impacts from the disease in the Chinese hog herd yet to be determined,” Cavalcanti said.
Tomazoni added that with the ASF outbreaks, global pork supplies are diminished, which has boosted the demand for pork and other meats. With a diverse geographic footprint that spans multiple animal proteins, JBS is in a good position, he said.
“I think JBS has built a truly global footprint, which is practically impossible to replicate,” said Tomazoni, pointing out that it operates in multiple continents and with five types of proteins. We have our -- we have our operations far continent and we operate with five types of proteins.
“(With) our financial conditions, our favorable market conditions, our footprint, our strong management team, JBS is ready to accelerate growth inside of the market opportunity,” he said.
Other perspectives
JBS is the majority stakeholder of U.S.-based poultry company Pilgrim’s Pride, which also has operations in Mexico, and in Europe through its Moy Park subsidiary.
Jayson Penn, CEO of Pilgrim’s Pride, on May 2 also spoke about the possible impact of the ASF outbreak in China.
“Given the evolving global situation of ASF, more pork and beef are moving out of the U.S. and reducing overall domestic availability, which is positive for chicken demand and pricing. We believe these are favorable signals for the upcoming summer grilling season, and we expect to have a further pick-up in demand for chicken,” Penn said at the time.
The CEOs of Tyson Foods, Sanderson Farms and Maple Leaf Foods have also offered their input on ASF and its possible impacts.
View our continuing coverage of the African swine fever outbreak.
