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Beef Industry · Cattle Shortage · Earnings · JBS
JBS NV, the world's largest meat supplier, reported a significant $293 million loss in its North American beef operation for Q2 2025, an 11-fold widening from a year earlier, yet its overall net income increased to 48 cents per share from 30 cents, largely due to lower financial expenses.
This widening loss, as reported by Bloomberg News, stems from the smallest U.S. cattle herd in decades, driving slaughter-weight animal prices to an all-time high and impacting major producers like Tyson Foods and Cargill Inc. While the cattle shortage is expected to persist for the next couple of years, JBS's diversified portfolio provided a cushion; its U.S. chicken unit, Pilgrim's Pride Corp., posted record quarterly earnings amid booming demand for cheaper alternatives to beef and low bird feed costs.
Ample cattle availability boosted beef profit in Australia, though China tariffs and higher hog prices weighed on JBS's U.S. pork business, and Brazilian beef margins declined. CEO Gilberto Tomazoni stated JBS is modernizing beef operations with a $200 million upgrade plan and expanding into higher-margin, added-value consumer products, including a $100 million acquisition for a ready-to-eat bacon and sausage plant.
The company also approved a $400 million stock repurchase plan and paid a $1.2 billion dividend, despite burning $55 million in cash during the quarter due to higher U.S. inventories and trade bans affecting its Brazilian chicken business.
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