The new plants will add processing capacity of 1.2 million head of cattle by July 2013, Jerry O’Callaghan, Head of Investor Relations said.
As the plants get into full swing at the end of 2013, they will be able to process up to 2 million head a year.
A spokesperson for JBS Couros, the company’s leather division told Leather International: “The six plants mentioned are all slaughterhouses, which will increase the slaughters in approximately 1.5 million head/year. Consequently, we should also benefit directly, increasing the availability of hides available for the processing in our tanning plants.”
Separately, JBS posted a quarterly profit of 367 million reais ($178 million), driven by its strong beef business in Brazil and recovering US poultry operations.
Brazil’s grass-fed beef industry is hoping to gain market share as other global beef producers, such as the United States, Europe and Australia, reduce the reproductive potential of their herds as they struggle with the high cost of feeds after the recent drought in the United States farm belt.
Wesley Batista, the JBS chief executive, said the company was quickly reducing its leverage, or debt to earnings, with the improving reproductive cycle of the Brazilian cattle herd and a weaker Brazilian real against the dollar.
“The cost of raising an animal in the United States is twice the cost of raising an animal in Brazil. So, they are reducing the size of their herd,” Batista said, adding that the outlook for Brazilian beef production was extremely positive.
