JBS reduced to 80% its production capabilities, and Brazilian breeders prefer to keep animals in the stables instead of taking them to the slaughterhouse. The news that bounces from South America brings a critical picture, where the leading player in the meat market, JBS, follows a slowdown in the entire bovine supply chain. The Batista-owned holding, which absorbs 25% of Brazil’s bred and 50% of Mato Grosso’s, not only imposes on its suppliers 30-day payments but has now stopped paying in cash. It does not seem that JBS has ever delayed payments, but the scenario, coupled with the revelations that bounce on the group’s liquidity problems, frustrates the breeders. The latter – facing falling meat prices and slowing down the market – prefer to continue to raise livestock. Brazilian exports also have problems. The news that the United States has suspended the import of fresh meat from Brazil follows that also Canada is strengthening checks on incoming cargoes from the green gold country. The Brazilian government now looks for 1,600 health inspectors to increase, thus increasing the workforce by 50%.
Brazil, JBS reduces production capacity while breeders get nervous for payments
