Brazilian meat and poultry companies JBS and BRF are being investigated by Brazilian antitrust regulator Cade, after executives from the two companies stated their intent to raise the cost of chicken prices.
According to a Reuters report, Cade opened its investigation on January 30, a decision reached with approval from the agency’s superintendent.
The investigation was launched based on information included in a report from Brazilian newspaper Valor Economico, in which Gilberto Tomazoni and Lorival Luz, chief executive officers of JBS and BRF, respectively, reportedly said at an event in Sao Paulo, that they would need to raise the price of chicken in order to mitigate a 30% rise in the price of corn, a key feed ingredient.
JBS and BRF are the two largest poultry companies in Brazil and South America, while they rank first and third among global companies, respectively. According to the WATTAgNet Top Poultry Companies Database, JBS slaughters 3.5 billion broilers annually, while BRF slaughters 1.628 billion head annually.
The JBS subsidiary Seara produces poultry, pork and processed foods in Brazil and exports to more than 140 markets. It is also a majority shareholder of Pilgrim’s Pride, the second largest poultry company in the United States, which also has operations in Mexico, and through the Pilgrim’s subsidiaries Moy Park and Tulip, also has operations in Europe.
BRF, formerly known as Brasil Foods, was created by the association between Sadia and Perdigao. BRF, which is also a major compound feed manufacturer, operates on an international scale, with its products reaching more than 110 counties. However, BRF reduced its global operations in 2019 by selling its Thai and European assets to Tyson Foods, the second largest poultry company in the world. It divested of those assets so it could better concentrate on its domestic market and markets with a higher Muslim population.
