JBS S.A., Income
by business unit
Pork UnitedStates 14% Beef Australia 12%5%3%
Beef
United States
47%
Beef
Italy
Beef
Argentina
Beef
Brazil
19%
Pending acquisition of Pilgrim’s Pride, JBS
is to add poultry to its protein portfolio.
Global ranking of protein companies (U.S. dollars, millions)
JBS/
Bertin
Tyson
Foods
Vion Food
Group
Nippon Meat
Packers
Danish
Crown
Hormel
Foods
JBS has emerged as the world’s largest protein company with recent acquisitions.
JBS’ international growth strategy is
to get closer to its customers
by developing a global marketing
and distribution system.
Farha Aslam,
Stephens, Inc.
With the announcement in
September of JBS purchasing Pilgrim’s
Pride, and Marfrig’s buyout of Seara,
the agri-food industry is becoming
increasingly global and diverse. He
points to these moves as proof that
companies must be global to compete.
“They’re combining beef, pork and
chicken, and of course I’m sure that
they want to diversify into poultry in
the US and maybe in Brazil, as well,”
he said.
“In the future, if you’re going to
be one of the global leaders, you
would need to be in the US, Brazil
and China.”
that idea, saying: “It gives JBS the
potential of doing what Tyson Foods
has started to do, which is to think
outside one protein category and
have a more holistic approach to the
marketing and distribution channel.
The channel is consolidating and is
looking for fewer, bigger suppliers
who have the ability to put multiple
proteins under one roof and go to
the channel with broad solutions.”
developing a global marketing and
distribution system.”
Aslam added JBS’ growth strategy
is much less protein specific and
more structural.
Marketing and distribution
JBS’ global footprint is not just
about economies of scale for
production, Aho said, it also means
economies of scale for global
marketing and distribution.
Jim Budzynski, managing principal
of investment and consulting
firm MacroGain Partners, echoed
The prototypes: Tyson and JBS
While there are similarities
between Tyson Foods and JBS, there
are also di;erences.
Farha Aslam of Stephens, Inc.,
said: “Tyson and JBS each have an
international growth agenda, but the
two agendas are di;erent.
“Tyson is focusing on poultry
for international growth. The key
markets that Tyson is interested in are
China, India, Mexico and Brazil.
“JBS’ international growth strategy
is to get closer to its customers by
Distribution opportunities,
challenges
Wesley Batista, CEO of JBS USA,
says that there are sizable synergies
to be tapped in the acquisition of
Pilgrim’s Pride.
“We believe there are $200 million,
conservatively, in synergies. The poultry
business will be run as a separate
business unit by the current CEO Don
Jackson, but we expect to combine
corporate areas. We expect to achieve
a lot of synergies in our distribution
strategy, which involves accessing
more end users for our three proteins.”
New competitive landscape
The move by the top firms to
a global, multiprotein platform is
expected to put additional pressure
on regional, single-protein companies.
Osler Desouzart of ODConsulting
in Brazil said: “If you do not become
a global player you risk becoming a
