This audio is auto-generated. Please tell us what you have feedback,
JBS USA Spending $ 200 million To expand beef production on two facilities As It prepares for expansion in the supply of cattle.
The processor will spend $ 150 million to create a new production floor and expand the beef room at its plant in Cactus, Texas. It will also pay $ 50 million for the construction of a new distribution center in Groile, Colorado.
Construction on projects will begin this year. The beef giant said it would promote production capacity and add supply chain capacity.
JBS USA beef operations are Had to face pressure in recent years Between the ups and downs in the price. During its condition Earning call in NovemberThe company’s CFO Gilharme Cavellkanti said its North American cattle operations have been challenged. He pointed to the net revenue of 6% year-on-year 6% in the quarter due to high beef demand.
Nevertheless, the margin for beef processor will be under pressure in short term as herd expansion is not estimated to start by 2026 or 2027, according to A. Cobank reportThe cooperative bank said that beef prices will be “near the historic high” through 2025.
The price of beef and wheel increased by 4.9% during last year, US Bureau of Labor Statistics Informed last month,
JBS USA CEO Wesley Batista Filho said in a statement that the company believes now “is time to invest in the United States, and we are excited about what the future is.”
“Today’s announcement shows our commitment to the American beef industry and American farmer and rancher,” said Batista Filho. “In JBS, we prioritize the investments running in our facilities to ensure our company and rural areas where we live and work is now and for future success.”
Texas’s facility employs 3,700 and pays $ 2.9 billion for annual livestock, while JBS said, while its colorado plant has more than 3,800 workers and is out of $ 3.1 billion for annual livestock.
The original company of Beef Giant, JBS SA, chasing a list New York Stock Exchange For many years. The Brazilian company has faced opposition from an IPO from the environment and corporate administration groups.
