Global: JBS Brazil plant closures to underpin future mutton prices

Published 2024년 12월 11일

Tridge summary

Eleven JBS beef plants in Brazil are closing due to a surge in beef prices, leading to tightened animal protein supplies, which is expected to bolster global demand for Australian sheep meat, particularly mutton. This situation is further exacerbated by increased demand for protein in countries like India, where buffalo herds are being rebuilt after a disease outbreak. The current economic downturn in China is also driving demand for mutton. Despite the higher prices, mutton remains the preferred choice among consumers due to its lower cost compared to lamb. This trend is anticipated to persist, with possible shifts to lamb only after prices adjust downward.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

THE closure of 11 JBS beef plants in Brazil this week is expected to further underpin the strong global demand for Australian sheep meat, especially mutton, according to Global AgriTrends analyst and trader Simon Quilty. Mr Quilty said the decision was prompted by a 52 percent rise in beef prices. The company had reportedly been looking at putting employees on leave at up to 11 plants in December or January, cattle prices hit record levels and drought conditions impacted supplies of suitable slaughter stock. Although there is also a seasonal aspect to the move, Mr Quilty said the development will tighten up animal protein supplies into the Middle East and China. “And it is very price-supportive for the commodity end, including mutton.” He said this development and tightening supplies of buffalo meat will underpin global mutton prices. Although the JBS plants have processed beef, they would tighten up global animal protein supplies, meaning better prices at the commodity end of the ...

Source: Sheepcentral