U.S.-based beef-packers are facing low cattle availability for the next three to four quarters, with gradual improvements expected in late 2027, according to JBS managers. The closure of the U.S. border with Mexico due to a flesh-eating parasite is also impacting operations, with around 1.1 million head of feeder cattle affected.

JBS’ U.S. beef operation, which accounts for a third of its net sales, is also dealing with challenges in the pork business due to the trade war with China. Additionally, restrictions on Brazilian chicken exports to China and the EU, following a bird flu outbreak, are weighing on the company. CEO Gilberto Tomazoni warned that EBITDA of its Brazil Seara prepared foods division may be impacted by 1.5% if sanitary trade barriers persist.

Despite disruptions, Seara’s margins remained strong in the double digits in the second quarter. JBS posted record net sales of $21 billion and a 61% increase in net profit to $528.1 million in Q2, driven by strong results from its poultry processor Pilgrims Pride. The company, now listed in New York, remains optimistic despite the challenges.

Read more at Yahoo Finance: JBS sees US cattle cycle improving from late 2027