Jbs Paints Bleak Landscape For Us Beef As Cattle Shortages Persist

A husbandman prepares provender for cattle astatine a workplace adjacent Montrose, Missouri, connected 6 November 2025. Credit: Clayton Steward/Bloomberg via Getty Images

Despite reporting grounds US beef sales, nutrient elephantine JBS has outlined nan excess processing capacity challenges that led rival Tyson Foods to adjacent a plant.

Discussing nan Brazilian company’s 4th fourth and yearly results, Wesley Batista, CEO of nan firm’s US unit, did not spell truthful acold arsenic to propose immoderate beef installation closures of its ain are imminent but flagged nan risks for nan industry.

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A shortage of cattle for bulldoze linked to a diminution successful US herds has seen beef volumes driblet astatine Tyson Foods of late, while unit prices person changeable up. Batista told analysts yesterday (26 March) that conditions are not apt to amended successful nan short word aft what he described arsenic a challenging 2025.

Addressing analysts alongside group CEO Gilberto Tomazoni, Batista was asked if nan manufacture could beryllium facing “some capacity adjustments” owed to nan imbalance betwixt cattle proviso and processing capacity.

“It’s very difficult for maine to respond connected that. It’s clear that location is much capacity successful nan US than location is cattle available,” he responded.

“In nan US not excessively galore years ago, 4 years ago, you had a capacity to process 33 cardinal caput and now we’re going beryllium astir 27 million. That successful itself shows location is excess capacity. Having said that, it’s very difficult for maine to respond astir thing regarding different companies.”

Tyson Foods announced nan closure of its Lexington, Nebraska, beef installation successful November, alongside a scheme to standard backmost operations astatine its tract successful Amarillo, Texas.

In February, Tyson’s president and CEO Donnie King said he expected cattle supplies to remain tight passim 2026 and 2027.

Explaining nan Nebraska and Texas decisions, he said they were implemented arsenic a intends to “right-size our beef operations pinch a smaller and much businesslike footprint, higher capacity utilisation, and stronger alignment pinch nan semipermanent outlook for nan US cattle herd”.

He added: “Continuing to sorb losses for illustration we person been seeing for nan past 2 years is simply unacceptable.”

JBS, which is nan world’s largest processor of meat, including beef, did not break down individual volumes for beef, which posted nett income successful North America past twelvemonth of $28.14bn, an summation of 15.9%.

Group macromolecule income crossed nan Brazilian company’s world operations roseate 12% to $86.18bn, besides a record.

In position of US bulldoze rates past year, Batista said JBS processed 2.3m head, down from 3.9m successful 2022. However, nan institution is facing a caller situation – an ongoing strike astatine its beef installation successful Greeley, Colorado.

“We dream this gets resolved arsenic soon arsenic possible,” Batista told analysts.

Now successful nan caller fiscal year, Batista said: “It’s communal knowledge that fixed nan marketplace information nan opening present of nan first 4th has been really tough, really difficult, very challenging. Probably nan astir challenging we’ve seen successful this manufacture successful a very agelong time.

“I don’t cognize if location is immoderate different clip that we had specified a antagonistic dispersed for January and February ever. March information is showing that it’s going to go better, sharply amended than wherever we were from January to February.”

However, he added: “One of nan things that has happened successful this scenario, that we person very debased cattle readiness and very debased processing volumes is that nan marketplace has go much volatile than we were utilized to successful this market. You spot large fluctuations successful cutout, large fluctuations successful cattle, much truthful than what we’re utilized to.”

Group CEO Tomazoni suggested Brazil and Australia are taking up nan income slack.

“The state [Brazil] recorded nan highest beef-processing measurement successful its history astatine astir 42 cardinal head. This reflected a full summation successful accumulation and reinforces Brazil’s increasing domiciled successful a world supply,” Tomazoni said successful his opening remarks yesterday.

“Our Australian business benefitted from nan existent imbalance betwixt world proviso and request of beef, mixed pinch nan beardown execution and supported coagulated profitability and reinforces nan domiciled of nan region successful balancing our world results.”