Australia’s largest meat processor JBS Australia and investment fund Rural Funds Management have announced an agreement this morning that will see RFM buy and lease back JBS’s five Australian feedlots, and under a separate deal, provide finance for all cattle on feed.
Chinese tariffs on American pork, a massive cow cull in New Zealand and a three-week trucking strike in Brazil may seem a long way from Australian cattle paddocks, but are recent examples of seemingly unrelated factors that can impact Australian beef export sales.
JBS Australia will launch a new Hereford breed-specific beef brand in January, under the company’s Great Southern Farm-Assured program.
Australia was the first port of call for JBS’s new global head of food safety, Al Almanza, after he joined the world’s largest meat processor last month. Why was that?
JBS’s global operations appear to have been little affected by the dramatic events in Brazil surrounding major shareholders, the Batista family, and broader industry corruption allegations, with solid overall financial performance reported for the company’s second quarter this morning.
In the latest development in the series of dramatic events surrounding crisis-riddled global processor JBS, the Brazilian parent company has announced plans to sell its Five Rivers feedlot business in the US – the largest lotfeeding operation in the world.
JBS has cut meat processing capacity in its Brazilian operations by up to 35pc, in the latest washout from the country’s rapidly escalating meat inspection crisis.
The diversified global nature of JBS’s operations paid dividends with a set of solid results reported for the company’s full financial year. Whereas a year earlier, JBS’s Australian business was one of the star performers, the company’s US beef operations are now benefiting from greater access to slaughter cattle and lower US cattle prices.
JBS Australia will shut lamb production at its Longford, TAS plant for at least four weeks from next week as tight supplies and high prices cut red meat processor margins across Australia. It’s been a recurring theme in both beef and lamb processing operations in the recent past.
JBS Australia will begin processing its first Certified Organic cattle next month, in a move which will inevitably add competitive tension for eligible stock in the marketplace.