Japan's decision favors JBS in the USA
Amid production adjustments made by the cattle industry in the United States to increase operating margins, JBS has received more good news from the US market. After much speculation in recent days, Japan is to relax its restrictions on imports of US beef from February 1, the CFO of JBS, Jeremiah O'Callaghan, confirmed to Valor PRO, the real-time information service from Valor.
On the BMF&Bovespa stock market, investors reacted well. JBS shares closed at R$ 7.36, up by 6.35%, the highest gain on the Ibovespa index. The market expects the decision to increase JBS' exports through its JBS USA division (which includes the chicken and pork business), responsible for about 70% of the company's revenue. O'Callaghan did not reveal the return expected by JBS, but said the impact will be 'relevant.'
Japan will allow purchases of beef from cattle slaughtered in the US of up to 30 months of age. It currently only accepts animals up to 20 months old. The current restrictions are related to the case of BSE detected on American soil in 2003 - older animals are more likely to contract the disease. At that time, the US was the largest exporter of beef to Japan. They lost their leadership to Australia.
Information provided by Valor Econômico