Meat&Poultry - June 2012 - 38

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better sales prices and if the industry balances supply and demand the rest of the year. JBS also looks for a seasonal increase in demand and higher cattle availability, he said. US cattle slaughter was down 4.9 percent in the quarter and JBS ran its US business in line with this percentage, Batista said. “JBS is seeing some decline in cattle availability but it will be reasonable the rest of 2012 and not much of a challenge. There will probably be fewer cattle in 2013 and 2014 and the industry will have to manage how many hours plants run vs. cattle availability. “JBS will not be looking to close any plants but to run them to match cattle availability,” Batista added. “JBS has a unique situation in that its Five Rivers cattle feeding unit provides it about two million cattle per year. This gives

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JBS a good base of cattle to run its plants.” He also noted that its plants in Wisconsin, Michigan and Arizona can slaughter cows and fed Holsteins. JBS USA Pork had a solid quarter but its EBITDA fell 45.1 percent to $55.8 million from $101.7 million a year earlier. Total sales at $855.4 million were up 2.2 percent from 2011’s $836.6 million. This primarily reflected an increase in domestic average sales prices, JBS said. The EBITDA margin was 6.5 percent vs. 12.2 percent. Results were impacted by a 3.5 percent increase in raw material costs and a 4.2 percent reduction in export volume due to some weaker markets. The industry needs to see

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— Guy Giordano, President & CEO of Vincent Giordano Corp.

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GUY GIORDANO

stronger pork exports and is waiting for China to come back into the market, Batista said. JBS SA’s multi-protein business helped it produce solid overall results in the quarter, despite the USA Beef loss and lower Pork EBITDA. It had net income in the quarter of R$116.1 million ($58 million), 21 percent lower than the R$147 million ($73.6 million) of a year earlier. Total revenue was R$16.0 billion ($8 billion), 9.1 percent higher than the R$14.673 billion ($7.355 billion) of a year earlier. Exports accounted for 22 percent of its global sales. Its largest markets were Mexico (14.7 percent), China/Hong Kong/Vietnam (14.4 percent), Japan (10.2 percent), Russia (9.1 percent), Africa and the Middle East (7.9 percent), and South Korea (6.1 percent). This market diversity reveals that JBS remains the global protein leader. ■
Steve Kay is editor and publisher of Petaluma, Calif.-based Cattle Buyers Weekly (www.cattlebuyersweekly.com ). We would like to hear from you – to comment on this story or to request reprints, contact us by email at meatpoultry@sosland.com.

President & CEO of Vincent Giordano Corp.

about

Vincent Giordano Corp. processes a range of deliquality roast beef, corned beef and pastrami products for foodservice, fast-food, retail and private-label customers. It also offers specialty products through Buona Vita in Bridgeton, NJ, which is one-quarter owned by Guy Giordano. Italian specialties processed include signature meatballs – it processes approximately 200,000 lbs. of product per day, or more than 500 million meatballs annually; handrolled, stuffed Beef Braciola; Italian Style Meatloaf made with a special blend of beef, breadcrumbs, seasonings and cheeses; Home Style Meatloaf, with peppers, onions and Worcestershire sauce; beef and pork crumbles for pizza toppings; and Sweet and Hot Italian Sausage.
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Meat&Poultry - June 2012

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