Guilherme Cavalcanti, CEO, JBS, said during a webinar the U.S. is capable of meeting domestic demand for meat for the next 15 days and that JBS is well positioned to increase its shipments from its units in Australia and Brazil. “Our geographic diversification has been a natural hedge for trade barriers and sanitary issues. Now, this flexibility has worked as a supply hedge for the current crisis”, said Cavalcanti. Similarly, Edison Ticle, CEO, Minerva, said the Brazilian meatpacker can meet the U.S. needs from eight plants located in Brazil, Argentina and Uruguay, and that Minerva has already increased its exports to the U.S. since early April.

After suspending imports of Brazilian beef in 2017 over safety concerns, the U.S. reopened the market on February 21. According to Ticle, Brazil is allowed to export around 60,000 metric tonnes of beef to the U.S. annually in a tariff-free import quota shared with other nations.

As reported by ILM, the U.S. President Donald Trump has ordered meat processing plants to stay open in the U.S. and raised concerns over food supply shortages.

Source: Bloomberg