A JBSthe world’s largest meat producer, is considering reducing production at some of its Brazilian plants at a time when rising cattle prices are weighing on slaughterhouse profits.
The alternative being analyzed by the company is to give collective holidays to up to 11 factories this month or in January, according to a source. Another strategy would be for JBS to reduce cattle purchases in these locations, which were not disclosed — but no final decision was made.
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Cattle values, a key indicator for beef prices, soared to a record last month after a severe drought damaged pastures and restricted the supply of slaughter-ready animals to meatpacking plants.
The company is not alone in seeking solutions to high prices. Some smaller slaughterhouses have already temporarily cut production, said Alcides Torres, founder of Scot Consultoria.
JBS did not respond to a request for comment.
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