JBS Seeks Price Increase to Offset Real, Cost Surge in Brazil
- Margins in region compressed by corn prices, currency jump
- Meatpacker sees improved outlook for U.S. pork, beef units
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JBS SA, the world’s largest meat producer, said it will need to raise prices and cut production as it seeks to offset a surge in costs and the local currency, which have slashed profit margins in its homeland.
Wesley Batista, the company’s chief executive officer, told investors on Thursday that the meatpacker’s recent efforts to pass through the higher costs to clients haven’t been enough to make up for skyrocketing prices for domestic corn used to feed chickens, while export revenue is being curbed by a faster-than-expected appreciation of the Brazilian real.