I was just wondering if any of the Australian ranchers have an opinion about all the foreign multinational companies (Swift/JBS Friboi( Brazil)-Australian Meat Holdings (US), Nippon Meat Packers Australia (Japan) Cargill Beef Australia (US) and Rockdale Beef (Japan)) buying up the major share of the slaughter capacity of the country- along with a huge amount of the feeding capacity of Australian cattle?
JBS/Swift now controls the world’s largest killing capacity, of 45,715 head per day in 35 plants worldwide…
JBS Friboi: From five head to 22,600
By JON CONDON
North Queensland Register
Monday, 11 June 2007
Australia
Few red meat industry stakeholders in Australia have any real knowledge about JBS Friboi, the new owner of Australia Meat Holdings.
This is despite the fact that it is already one of the largest exporters of beef and beef products in the world.
JBS acquired Australia's biggest meatworks group when it bought Swift and Co, the big US meat processor which owned AMH.
JBS has grown into what is now the world’s largest meat company, gauged by killing capacity, from the most humble of beginnings.
The family-controlled business founded by Jose Batista started as a slaughterhouse killing just five head a day in 1953 in the Brazilian city of Anapolis.
Acquisitions of small Brazilian plants took daily capacity to 500 head by 1970, and the scale of operations continued to grow steadily over the next 30 years, building to 5800 head/day by 2001.
Since then, growth has occurred at a more dramatic pace, lifting to 22,600 head/day in 22 plants in Brazil and five in Argentina prior to the most recent Swift and Co takeover.
In 2005, JBS indirectly acquired 100pc of the share capital of Swift, the largest producer and exporter of beef in Argentina.
Today, the founder, Jose Batista, together with three sons and three daughters, including Jose Jr are actively involved in the company’s operations.
The company says it enjoys higher profit margins than many of its main competitors in Brazil, due to its low cost structure, efficient processing facilities, and high quality products. JBS has also vertically integrated its operations, operating a fleet of about 500 modern livestock and refrigerated meat delivery trucks, and its own container shipping terminal near Sao Paulo, providing efficient distribution.
In terms of export markets, the company sells 24pc of all fresh and frozen Brazilian beef going into the UK market.
Brazil, overall, controls 70pc of all imported beef into the UK.
While major US meat companies Tyson Foods and Cargill both rank higher than JBS Friboi in terms of annual value of beef produced, JBS/Swift now controls the world’s largest killing capacity, of 45,715 head per day in 35 plants worldwide.
Because of its somewhat coincidental acquisition of Swift assets in Brazil, Argentina, the US and Australia over recent years, the company plans to build on the Swift brand name around the world.
SOURCE: Queensland Country Life, June 7.
nqr.farmonline.com.au
