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Diving Briefs:
- JBS said Iowa facility would spend $ 100 million to buy and switch to the largest bacon and sausage factory in the United States.
- The company previously acquired 186,000 square feet of facilities at Ankeny owned by Grocery Chain Hy-Vee. JBS will invest in capital so that the establishment can produce sausages and bacon by mid -2012.
- Headquartered in Brazil, JBS has invested in a US manufacturing network this year to expand chicken and pork production. The world’s largest meat processor, published in May, plans to build a $ 135 million sausage plant in Iowa Perry.
Dive Insights:
Consumers are increasingly turning pork and chicken than more expensive beef by demanding JBS production capacity in the United States.
The pride of a number of pilgrims of JBS is planning a $ 400 million factory in Georgia. According to Wesley Mendonca Batista Filho, the chief operating officer of JBS, this investment combined with Iowa’s pork facility will lead to “significant increase.”
Batista said to investors in mid -August, “Today we need the ability to continue to grow. This requires a bottleneck of this market’s growth.” It’s a much more production capacity than actually selling. ”
Due to the lack of cattle in the United States, the price of beef has risen, pushing consumers into cheaper options. JBS’s pork unit in the United States recorded a 5% decrease in the previous year due to trade restrictions with China, but management said the basic business foundation was strong.
Batista said, “Pork is a very good choice when the beef is low and the price of beef is high.”
JBS currently operates four production facilities in Iowa. Perry’s factory offers raw materials to Ankeny’s acquisition facilities, allowing the company to produce sausage items that are fully cooked in addition to bacon.
The ankeny plant is expected to create about 400 jobs when all stages of the project are completed. JBS wants to hire a former employee who has previously worked in Hy-Vee facility.
