JBS Expands into the Egg Market with Mantiqueira Brasil Merger
JBS has acquired a 50% stake in Mantiqueira Brasil, marking its entry into the egg market as part of a broader strategy to diversify its protein offerings and expand into new global markets.
The world’s largest meat company, JBS, is making a significant move into the egg industry. In a strategic merger, JBS has acquired a 50% stake in Mantiqueira Brasil, one of South America’s largest egg producers. This partnership marks an important shift for JBS as it continues to expand beyond traditional meat products.
A Major Expansion for JBS
JBS has long been known for its dominance in beef, chicken, and pork production. However, in recent years, the company has sought to diversify its portfolio. With investments in seafood, plant-based proteins, and even cultivated meat, the company is looking to establish itself across multiple protein markets.
The acquisition of Mantiqueira Brasil represents another step in this direction. Mantiqueira, which produces an impressive 4 billion eggs per year, will continue to be led by its founder, Leandro Pinto, in a joint management structure with JBS.
Why Eggs, and Why Now?
The decision to invest in eggs comes at a time when the U.S. market is experiencing a supply crunch. Due to widespread bird flu outbreaks, egg prices have soared, and producers like Cal-Maine Foods have seen significant profits as demand remains high.
According to JBS Global CEO Gilberto Tomazoni, egg consumption is growing worldwide, and this investment aligns with the company’s long-term strategy of diversifying its protein offerings. Economists consider eggs to have “inelastic demand,” meaning consumers continue buying them regardless of price fluctuations. This makes the egg market a stable and lucrative opportunity for JBS.
Opportunities for Mantiqueira Brasil
For Mantiqueira, the merger provides an opportunity to expand beyond Brazil and enter international markets, particularly the U.S. The company already owns well-known brands such as Happy Eggs (unrelated to the U.S.-based Happy Egg Co.) and the organic brand Fazenda da Toca.
By leveraging JBS’ vast infrastructure and expertise in poultry production, Mantiqueira can position itself as a key player in the global egg market. CEO Márcio Utsch has expressed a strong interest in producing cage-free eggs for the U.S. market, a growing trend among American consumers.
What This Means for the Industry
JBS’ entrance into the egg business signals increased competition in an already dynamic industry. Established players will likely face pressure as the meat giant leverages its resources to carve out a significant share of the market. At the same time, consumers may benefit from increased production capacity, potentially stabilizing egg prices in the long run.
This merger marks a pivotal moment for both JBS and Mantiqueira Brasil. With strong market demand, global expansion plans, and strategic support from a major industry leader, the egg business is set to become an important part of JBS’ evolving portfolio.
Source: https://www.agriculturedive.com/news/jbs-egg-merger-mantiqueria-brazil-meat/738773/