JBS Swift, and its parent company JBS S.A., are positioning themselves to build future market share in the United States and internationally. Economist John Nalivka, with Sterling Marketing, Inc., Vale,
JBS, Nalivka says, is not the kind of company that sits back and waits for things to improve. Since the Brazilian company JBS S.A. acquired Swift & Company two years ago, they have aggressively pursued acquisitions and expansion opportunities in the
It is generally more cost-effective for a packer to purchase existing plants, brands, and by extension, new customers, than it is to build from scratch, Nalivka says. He speculates that as the company expands, they could shift some plant capacity away from slaughter and into production of value-added and case-ready products for domestic and export markets.
“JBS is a different kind of company than we’ve seen in the
So will the IPO raise the cash JBS wants for their expansion goals? Nalivka says it’s a tough call. Investors today have a low tolerance for risk, but on the other hand, commodities can offer an attractive investment alternative during times of economic volatility. JBS sees long-term potential for growth in global meat demand, and their strategies for managing slaughter capacity, purchasing market share and gaining access to new markets should position the company to capitalize on future growth in demand.