JBS posted record results for the first quarter of the year, with net sales reaching US$ 21 billion, up 11% year-on-year, driven by the strong performance of its international operations, especially in Australia. However, the company again warned about a very challenging scenario for the US beef industry, where its beef division posted losses of US$ 230 million due to severe cattle shortages and high replacement costs.
The company believes the rebuilding of the US herd will take longer than previously expected because of the lingering effects of drought, and it does not foresee a significant recovery in cattle availability before late 2028. JBS even projects that 2026 will be more challenging for the industry than 2025. Even so, domestic demand remains extremely firm and has supported high beef prices.
In this context, the company defended the structural need for lean beef imports from countries such as Brazil and Australia to supply the US hamburger industry. According to JBS, the US industry depends on imported lean beef to blend with local fatty trimmings. Without those imports, domestic fatty cuts would lose value and premium US beef prices would rise even further.
For Brazil, JBS expects a more volatile cattle market during the second half of the year. The company linked recent cattle price increases to the export race to fill China’s quota before the end of June. Once that quota is exhausted, JBS expects slaughter volumes and cattle prices to decline, forcing Brazil to redirect around 100,000 tons of beef per month to alternative international markets.
In Australia, on the other hand, the outlook remains clearly positive. JBS highlighted that pasture conditions in Queensland are the best seen in three years and projected an excellent year for its Australian operations, supported by strong demand from premium markets such as the US, Japan and Korea.
Globally, the company maintains an optimistic outlook for protein consumption. Beyond the growth of high-protein diets, JBS believes that the expansion of weight-loss drugs such as Ozempic could even reinforce animal protein demand due to the need to preserve muscle mass. The company sees this as a long-term structural shift and announced it will accelerate the development of high-protein products and convenient ready-to-cook meals for home consumption.
