JBS N.V. (JBS) Eyes Partnerships and Contracts to Offset Cattle Supply Shortfall in Brazil

JBS N.V. (NYSE:JBS) is one of the best FMCG stocks to invest in. On September 17, the company reiterated that it is preparing for a shift in Brazil’s cattle cycle, which could result in reduced availability of animals for slaughter.

JBS N.V. (JBS) Eyes Partnerships and Contracts to Offset Cattle Supply Shortfall in Brazil

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The number one beef exporter is preparing for a significant drop in cattle supply in the country at a time when other nations, such as the U.S., are feeling the pinch. Over the past 24 months, Brazil has experienced an oversupply, resulting in higher processing rates. However, the supply momentum has faded significantly. Cattle slaughter in Brazil is expected to drop by 9% in 2026.

“The imminence of the cattle cycle shift brings challenges. We are preparing through partnerships, contracts, and close relationships with ranchers to preserve our volumes,” Eduardo Pedro, Executive Director of Origination at Friboi JBS. “With crop-livestock integration, tech adoption, earlier slaughter age, and productivity gains, cycle impacts can be softened. That’s what we expect,” he added.

JBS N.V. (NYSE:JBS) is a global protein and food company that produces and sells a variety of products, including beef, poultry, pork, and plant-based foods. The company also offers leather products and operates Swift, a related business providing swift services.

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Disclosure: None. This article is originally published at Insider Monkey.