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JBS Expands in Oman While Facing Worker Tensions in the U.S.
JBS is growing its halal meat business in Oman, even as workers at one of its biggest U.S. plants prepare for a possible strike.
Martina Osmak
Director of Marketing
A Big Move Into the Middle East
JBS N.V., the world’s largest meat producer, has agreed to buy most of an Oman-based meat company.
The deal is part of JBS’s plan to grow its halal food business.
JBS will invest $150 million to buy 80% of the company.
The remaining 20% will stay with Oman Investment Authority, Oman’s state investment fund.
This new business in Oman includes:
A poultry farm and processing facility
A plant that processes beef and lamb
The poultry will come from local farms in Oman.
The beef and lamb will use animals sourced from Africa and the Middle East.
Why Oman Matters to JBS
JBS says Oman is a good place to enter the region.
According to CEO Gilberto Tomazoni, Oman helps the company:
Stay closer to suppliers
Reach regional customers faster
Build a strong base for future investments
JBS already operates poultry plants in Saudi Arabia and is expanding its facility in Jeddah.
The Oman deal is another step in growing its halal footprint.
Trouble at a Major U.S. Plant
While JBS is expanding abroad, it is dealing with problems at home.
Workers at the JBS meat plant in Greeley, Colorado, have voted to authorize a strike.
This means a strike could happen soon if talks with management fail.
Union leaders say:
Workers are not treated fairly
Work speed is too fast and unsafe
Wage increases are too small for the high cost of living
The union also claims JBS has broken labor laws by:
Intimidating workers
Taking back earlier offers during talks
JBS did not comment on these claims.
Economic Pressure on Meat Companies
Experts say meat processors are under stress right now.
Key reasons include:
Very high cattle prices
Smaller profit margins
Rising labor costs
Other companies are also struggling.
For example, Tyson Foods has closed a plant in Nebraska and reduced hours at another plant in Texas.
Still, union leaders in Greeley say money problems are not an excuse for poor treatment of workers.
What Comes Next?
For JBS, two stories are happening at the same time:
Growth in the Middle East, with new investment in Oman
Labor conflict in the U.S., with a possible strike ahead
The company is betting on global expansion, but tensions with workers could bring serious challenges in its home market.
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