Reuters – Brazilian meat packers JBS SA and BRF SA have both acknowledged they are struggling to pass on higher feed costs to consumers in their home market although JBS sounded a more bullish tone given its big U.S. exposure.
Both companies reported they had swung to first-quarter profits after losses a year ago.
JBS, which gets most revenue from sales in North America, booked a quarterly profit of 2.045 billion reais (US$386 million), while BRF, which sells a majority of its volumes in Brazil, booked a more meagre 22 million reais (US$4.15 million) profit.
“It was a quarter different from what we dreamed of in 2020,” BRF chief executive Lorival Luz said in a call with journalists.
He told Reuters that BRF, the world’s largest poultry exporter, was considering earlier slaughter for chickens and temporary stoppages at its pork and poultry plants in response to record corn prices.