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Diving Briefs:
- JBS, the world’s largest meat company, plans to crack the egg industry by merger with major Latin American producers.
- JBS said on Monday that it has acquired 50% of Mantiqueira Brasil, one of the largest producers in South America, that 4 billion people have printed each year. The company’s control will be shared with Mantiqueira founder Leandro Pinto.
- MeatPacker said the contract can diversify its grown portfolio that has grown to include seafood and alternative protein in recent years. In the case of Mantiqueira, the merger shows the opportunity to enter a new market and become an “important competitor abroad”.
Dive Insights:
JBS is entering the egg market at the US price due to a wide range of bird flu that restricts supply. Cal-Maine Foods and other egg producers ordered significant profits as demand continued to supply even if the price was high.
JBS Global CEO Gilberto Tomazoni added that investments in Mantiqueira in the statement, “It coincides with long -term strategies, including diversifying portfolios by entering new protein segments.”
Recently, JBS has been trying to expand its market share in protein categories with mixed success. The company closed Planterra, a US plant -based protein brand, two years after its launch in 2022.
Despite the closure of Planterra, JBS did not give up investing in the sector beyond traditional meat such as beef, chicken and poultry. Last summer, Meat Packer said it would invest about $ 110 million in Australian salmon agricultural business in Australia’s $ 110 million or $ 73 million at the time of announcement.
JBS is also looking for opportunities for cultivated meat. In the late 2023, the company began to build a meat plant that grew up in the world’s largest laboratory in San Sebasti, Spain.
Transactions with Mantiqueira indicate an area of opportunity to enter a market with strong demand. Economists have long considered the demand for eggs and “non -elastic”, a necessity of American diets, which will continue to be purchased by consumers despite the price of the price.
Mantiqueira announced that it operates plants in six Brazilian states and employs 3,000 workers. Mantiqueira owns the brand with its name, and owns free eggs, HAPPY EGGs, and organic brand Fazenda da toca. HAPPY EGGs is not related to the free range egg producer Happy Egg Co., Ltd. headquartered in the United States.
In combination with JBS, Mantiqueria offers opportunities to invade new markets other than Brazil, including the United States.
Márcio utsch, chief executive of Mantiqueira Brasil, said Bloomberg has prioritized the US market to produce eggs without cages. The vast poultry infrastructure of JBS, the world’s largest chicken producer, is expected to ease the transition to a new market.
Pinto said in a statement, “We are ready. “We are Brazil’s leaders and JBS’s support will be more accessible to market opportunities and we will get the expertise you need to be an important competitor abroad.”
