JBS Invests $200M to Expand US Beef Production
JBS is investing $200 million to expand its U.S. beef production capacity, preparing for an expected increase in cattle supply while improving efficiency and supporting local economies.
JBS USA, a major player in the meat industry, is making a big move to expand its beef production. The company is investing $200 million in two key facilities, expecting an increase in cattle supply after a recent period of decline.
Expansion Plans
The company is allocating $150 million to its Cactus, Texas plant, where it will build a new production floor and expand its beef processing room. Additionally, JBS is spending $50 million on a new distribution center in Greeley, Colorado. Construction is set to begin this year, with the goal of increasing production capacity and improving efficiency in the supply chain.
Why Now?
The beef industry has faced challenges in recent years due to fluctuating prices and a shrinking cattle supply. In a recent earnings report, JBS CFO Guilherme Cavalcanti acknowledged these difficulties but highlighted a 6% year-over-year revenue increase in the company’s North American cattle division, driven by strong demand for beef. However, industry experts predict that cattle herd expansion won’t start until 2026 or 2027, meaning beef prices will likely remain high through 2025.
JBS’s Commitment to Growth
Despite short-term challenges, JBS sees this as the right time to invest in the U.S. market. Wesley Batista Filho, CEO of JBS USA, emphasized the company’s commitment to American farmers and ranchers. He stated that the expansion aligns with their long-term strategy to support rural communities and ensure a strong future for the beef industry.
Expanding Beyond Beef
JBS recently announced its expansion into the egg market through a merger with Mantiqueira Brasil, a leading egg producer. This move demonstrates the company’s continued growth strategy and diversification within the protein market.
Impact on Jobs and Economy
JBS’s Texas plant currently employs 3,700 workers and spends $2.9 billion annually on livestock. The Colorado facility has over 3,800 employees and purchases $3.1 billion in livestock each year. These investments are expected to further strengthen local economies and provide job stability in these regions.
Looking Ahead
JBS’s parent company, JBS SA, has been working toward a New York Stock Exchange listing for several years, though it has faced opposition from environmental and corporate governance groups. As the company moves forward with these expansions, it continues to solidify its presence in the U.S. beef market while navigating broader industry challenges.