Top global meatpacker JBS prepares for drop in cattle for slaughter in 2026

Sao Paulo | Reuters — Brazilian meatpacker JBS is ready for a possible shift within the nation’s cattle cycle that might result in diminished availability of animals for slaughter subsequent yr, an govt mentioned on Wednesday.

“The imminence of the cattle cycle shift brings challenges. We’re getting ready via partnerships, contracts, and shut relationships with ranchers to protect our volumes,” Eduardo Pedroso, govt director of origination at Friboi JBS, advised reporters at an occasion in Sao Paulo.

Why it issues: JBS is the world’s largest meat producer and Brazil is the highest beef exporter. A lower in cattle provide would come at a time when different meat producing nations, together with the United States, face comparable shortages.

Brazil has skilled a major improve in cattle slaughter over the previous 24 months resulting from oversupply, which allowed for larger processing charges within the nation’s meat business. Nevertheless, indicators now level to diminished provide subsequent yr.

Based on consultancy Datagro, cattle slaughter within the nation is anticipated to drop greater than 9 per cent in 2026 from this yr, reaching 37.1 million animals, after estimated jumps of greater than 16 per cent between 2023 and 2024 and three per cent from 2024 to 2025.

“With crop-livestock integration, tech adoption, earlier slaughter age, and productiveness beneficial properties, cycle impacts will be softened. That’s what we anticipate,” Pedroso mentioned.

Exports to U.S. anticipated to fall

Brazil’s beef exports to the USA are anticipated to falling additional in September from the earlier months, the top of native beef foyer Abiec mentioned on Wednesday, in a transfer linked to higher tariffs imposed by President Donald Trump on items from Brazil.

“The lack of our second-largest market makes a distinction,” Robert Perosa mentioned at an occasion hosted by consultancy agency Datagro. “However surprisingly, even with the 76.4 per cent tariff, there are nonetheless exports to the U.S. due to the competitiveness we now have gained.”

Perosa mentioned that beef exports to the U.S. ought to fall to about 7,000 metric tons in September, from round 9,000 tons in August and 30,000 tons per 30 days within the interval previous the tariffs, which got here into drive in August.

The U.S. was once the second-largest purchaser of beef from Brazil. That modified final month, when Mexico took over the place after Trump imposed a 50 per cent levy on U.S. imports of a number of Brazilian items.

The contemporary duties added to a 26.4 per cent import tax confronted by Brazilian beef that was shipped outdoors a beforehand established quota.

---

You’ll additionally obtain business and coverage info, multi function handy e mail delivered proper to your inbox!

One e mail delivered 6 days per week for ranchers, feedlots, packers and livestock gross sales operators.