The meat industry has been facing challenges with rising beef prices, prompting companies to explore other avenues to meet consumer demand for protein. In light of this, JBS recently acquired a 50% stake in Mantiqueira Brasil, a prominent egg producer in South America. This move signifies JBS’s efforts to expand its presence in the U.S. market, following previous ventures into seafood and alternative protein markets.
Egg producers have seen substantial profits in recent years, driven by high prices and consumer demand for protein. However, the industry has also been grappling with the impact of bird flu outbreaks, which have affected various poultry farms. One such example is Hickman’s, a smaller producer based in Arizona, which had to lay off 85 workers after losing nearly its entire chicken flock to bird flu. This setback was a significant blow to the company, as it struggled to fulfill orders for the first time in over eight decades.
Glenn Hickman, the CEO of Hickman’s, expressed the challenges faced by the company and the trauma of losing millions of chickens within a short period. Despite this setback, Hickman remains optimistic about the company’s future, especially with JBS’s support in restoring the flocks and expanding operations. The partnership with JBS is seen as a strategic move to leverage the company’s resources and scale in the U.S. market.
Murilo Scarpa Pinto, president of Mantiqueira USA, emphasized the strong foundation laid by the deal with Hickman’s for their U.S. ambitions. The combination of Hickman’s legacy, quality, and customer relationships, coupled with JBS’s global experience and resources, positions the company for growth and success in the market.
JBS has been under pressure to diversify its portfolio due to cattle shortages and higher beef prices impacting its earnings. The acquisition of Mantiqueira Brasil and partnership with Hickman’s align with JBS’s strategy to expand into new markets and mitigate the challenges within the meat industry. Despite facing a decline in gross profits in its beef division, JBS remains focused on driving growth and innovation in its operations.
