JBS’s Innovative Producer Financing

Innovative Financing for Small Producers: A Vision for the Future of Food Systems

In a world grappling with environmental crises, economic inequality, and food insecurity, Gilberto Tomazoni, CEO of JBS Global, proposes a forward-thinking solution. Speaking at the Bloomberg New Economy event in São Paulo, Tomazoni emphasized the critical need for innovative financing mechanisms to support small producers. His vision is centered on equipping them with technology and sustainable practices to boost productivity, combat climate change, and secure food supply chains. Tomazoni’s ideas represent a pathway to addressing pressing global challenges by transforming food systems to benefit economies, communities, and the environment.

The Importance of Small Producers in Global Food Security

Small producers, particularly those in developing countries, make up the backbone of the global food supply. However, they often face challenges in accessing the resources necessary to thrive, including financing, technology, and market support. Tomazoni points out the dichotomy of modern agriculture: the need to produce more food for a growing population while conserving resources and mitigating climate change impacts.

Tomazoni believes that creating a resilient food system depends on supporting these small producers. “We have to produce more with less, and therefore, increasing efficiency is the way forward,” he says, adding that technology and innovation must be accessible to small-scale farmers. Such support can enable them to meet the dual challenges of productivity and sustainability, positioning food systems as a solution to global crises.

Innovative Financing Mechanisms: The Key to Sustainable Agriculture

A central element of Tomazoni’s proposal is offering small producers access to innovative financing mechanisms. Traditionally, small farms struggle to secure funding due to high-interest rates, rigid collateral requirements, and limited financial literacy. By offering flexible, affordable financing options, small producers can invest in sustainable agricultural practices, modern equipment, and climate-smart technologies.

Innovative financing might include low-interest loans, grants, or payment schemes based on crop yields or environmental contributions, which Tomazoni terms “payment for environmental services.” This concept rewards producers for maintaining sustainable practices, such as reforestation, soil conservation, and carbon sequestration, which can mitigate climate change and enhance biodiversity. As a result, these producers gain a financial incentive to pursue eco-friendly farming, leading to a more sustainable agricultural landscape.

Bridging the Funding Gap for Climate-Smart Agriculture

Currently, agricultural projects receive minimal climate funding. According to the International Fund for Agricultural Development (IFAD), less than 4% of climate finance goes toward agriculture, with only 1.7% allocated for projects in developing countries. This discrepancy reflects a significant gap in climate funding, one that Tomazoni argues must be addressed to create a lasting impact.

He emphasizes the importance of reallocating resources to support climate-resilient agriculture, particularly for small producers in vulnerable regions. With increased funding, farmers can adopt innovative practices like precision agriculture, drip irrigation, and renewable energy sources, which not only improve productivity but also help reduce emissions. Redirecting investment to climate-smart agriculture, particularly for smaller farms, is crucial for meeting global climate targets and securing the future of food systems.

The Role of Technology in Driving Efficiency and Sustainability

Tomazoni stresses that technology is already transforming agricultural practices in Brazil, proving that it is possible to produce more food while minimizing environmental impact. Precision agriculture, for example, uses data-driven techniques to optimize resource use, reduce waste, and improve crop yields. Digital platforms can enable farmers to monitor soil health, predict weather patterns, and access markets efficiently, leading to better decision-making and profitability.

However, ensuring small producers have access to these technologies remains a challenge. Tomazoni suggests that financing initiatives should encompass funding for technological education, infrastructure, and digital tools. Training programs and subsidies for technological adoption can empower farmers to implement practices that are both sustainable and profitable.

Global Collaboration and Policy Support

Tomazoni’s vision for sustainable food systems extends beyond financing and technology. It requires a collective commitment from governments, international organizations, and the private sector to support small producers. During the Bloomberg New Economy panel, he highlighted the collaborative approach taken by the B20’s Sustainable Food Systems and Agriculture task force. This group, comprising global business leaders, has presented recommendations to the G20 Agriculture Ministers, with 75% of these proposals already accepted.

By securing political and institutional backing, Tomazoni believes these initiatives can gain traction and produce tangible outcomes. He calls upon world leaders to not only adopt these recommendations but also to implement them in ways that create measurable change. Policy support is essential to fostering an environment where sustainable agricultural practices can flourish, especially for smaller producers who lack influence on global policy agendas.

The Potential of Food Systems to Solve Global Challenges

Food systems, according to Tomazoni, hold the potential to address some of the world’s biggest challenges, from hunger and poverty to climate change and inequality. This belief is at the core of his argument that investing in agriculture—particularly through innovative support for small producers—will benefit not only the environment but also global economies and communities.

Tomazoni envisions a future where food systems are a powerful tool in combating food insecurity, creating jobs, and fostering economic resilience in rural areas. By prioritizing efficiency and sustainability in food production, nations can reduce resource strain, lower greenhouse gas emissions, and create more equitable economies. “Investing in food systems is part of the solution to the dilemmas of prosperity,” he states.

Supporting Small Producers in a Competitive Global Market

In the global agricultural market, small producers often struggle to compete with large-scale industrial farms. However, by providing targeted support, these producers can become key players in the push for sustainable, resilient food systems. Initiatives that focus on fair trade, access to markets, and financial security can help level the playing field for small farmers, enabling them to thrive in competitive markets.

Tomazoni’s advocacy for market access includes encouraging local governments and organizations to create favorable conditions for small producers to sell their goods in both local and international markets. Trade policies that prioritize fair prices for small-scale producers can make a substantial impact on their livelihoods and help build a resilient global food supply.

Conclusion: A Roadmap to a Sustainable Future

Gilberto Tomazoni’s call to action for innovative financing and technological support for small producers underscores a broader vision for the future of food systems. By empowering small farmers, Tomazoni argues, the world can make strides toward a more sustainable, productive, and equitable food system that meets the needs of a growing global population while preserving natural resources.

As world leaders and stakeholders look to the future, Tomazoni’s message resonates as both a blueprint and a challenge. Investing in sustainable food systems through financing, policy support, and technological advancement could reshape global agriculture, turning it into a force for environmental conservation, economic growth, and social equity. The journey to a sustainable food system is complex, but with the right resources and commitment, it offers a pathway to addressing some of the most pressing challenges of our time.

In Tomazoni’s words, “Everyone wins.” His vision sets a hopeful tone for the future, highlighting that sustainable agriculture can indeed be a cornerstone in achieving global prosperity.

Top 10 Poultry Producers in USA

Discover the top USA poultry producers – rankings, insights, and industry leaders. Explore the leading names in chicken production.

Leading chicken producers in the United States – Rankings, Key Players, and Industry Insights

Introduction

The United States boasts a thriving poultry industry, with numerous producers contributing to its success. This report unveils the top 10 poultry producers in the USA, providing rankings, key information, and valuable insights into this vital sector.

Tyson Foods, Inc. – Leading the Flock

Tyson Foods, Inc. stands tall as the USA’s largest poultry producer and a global meat processing giant. Based in Springdale, Arkansas, Tyson Foods is renowned for its chicken products, fresh and frozen. Its commitment to sustainability and animal welfare cements its status as an industry leader.

Pilgrim’s Pride Corporation – Navigating Excellence

Greeley, Colorado, houses Pilgrim’s Pride Corporation, another heavyweight in the US poultry industry. This company excels in chicken production and has a robust presence both domestically and internationally. Pilgrim’s Pride is synonymous with innovation and sustainability.

Sanderson Farms, Inc. – A Natural Choice

Laurel, Mississippi, serves as the home base for Sanderson Farms, Inc., a poultry producer famed for its natural and antibiotic-free chicken products. Its unwavering dedication to stringent food safety standards bolsters consumer trust.

Perdue Farms, Inc. – A Family Tradition

Salisbury, Maryland, is where you’ll find Perdue Farms, Inc., a family-owned poultry producer with a rich heritage. Perdue Farms specializes in chicken, turkey, and pork, and is a champion of animal welfare and sustainable farming.

Wayne Farms, LLC – Wings of Success

Wayne Farms, headquartered in Oakwood, Georgia, takes a prominent role among US poultry producers. The company specializes in a wide range of chicken products, including fresh and frozen options, and serves both domestic and international markets.

Mountaire Farms, Inc. – Sustaining Communities

Selbyville, Delaware, is home to Mountaire Farms, Inc., a vertically integrated poultry company focused on chicken products. Its commitment to sustainability and community engagement is commendable.

Foster Farms – Western Royalty

Livingston, California, is the headquarters of Foster Farms, a leading poultry producer on the West Coast. Known for its quality chicken and turkey products, Foster Farms prioritizes quality and safety.

Koch Foods – Southern Poultry Powerhouse

Park Ridge, Illinois, is where you’ll find Koch Foods, a major player in the US poultry industry, particularly in the South. Its diverse product line includes fresh, frozen, and value-added chicken products.

Bell & Evans – A Premium Choice

Fredericksburg, Pennsylvania, is where Bell & Evans shines as a premium poultry producer. It’s celebrated for its high-quality chicken, with a focus on organic and antibiotic-free options. Bell & Evans champions animal welfare and sustainable farming.

Conclusion to US chicken company review

The United States poultry industry thrives with a diverse array of producers, each contributing uniquely to meet soaring demand for poultry products. These top 10 poultry producers, led by Tyson Foods, Pilgrim’s Pride Corporation, Sanderson Farms, Perdue Farms, Wayne Farms, Mountaire Farms, Foster Farms, Koch Foods, and Bell & Evans, are pivotal in this growth story. Their unwavering commitment to quality, sustainability, and animal welfare positions them as trusted industry leaders.

By offering comprehensive insights into the top poultry producers, this report aims to serve as a valuable resource for industry enthusiasts, researchers, and consumers alike, ensuring high visibility in online search results.

Related: Top 100 USA Poultry Companies

Source

JBS NY Listing Struggle

JBS, the Brazilian meat giant, faces challenges in the US, affecting profits and delaying its NY listing plans.

JBS Struggles with U.S. Market Challenges and Delays NY Listing Plans

JBS SA, the Brazilian meat giant, which is facing some challenges both in its home market and across the United States. According to the company’s management, these headwinds are due to the pressure on beef margins in the U.S. and the slow normalization of pork margins.

Just recently, JBS reported a decrease in profit and EBITDA, a key measure of operating income, at 5.40 billion reais, causing shares to dip by as much as 3.7% during early trading in Sao Paulo.

The company attributes these financial setbacks to struggling beef margins in the U.S., a recovering U.S. pork division, and an oversupply of chicken globally. JP Morgan noted that JBS’ EBITDA fell 11% below their estimate and 2% below consensus, though it also highlighted better-than-expected free cash flow generation.

JBS Bolsters Seara Division Amid Global Chicken Surplus, Maintains Growth Plans Despite U.S. Beef Challenges

Despite these challenges, JBS is taking steps to enhance the performance of its processed foods division, Seara, in Brazil. They’ve made significant investments to expand its capacity, aiming to combat a global surplus of chicken and increased competition in certain product categories. While the recovery of Seara is slower than anticipated, the recent expansion is expected to lead to stronger margins in the future.

JBS remains committed to its plans to increase Seara’s pork and chicken production by 10% this year and another 10% in the next. However, the U.S. beef division faces challenges with a shortage of cattle for slaughtering in the fourth quarter of this year and into 2024.

JBS Expects Strong Q4 Cash Generation Amid Favorable Market Factors, Faces Delay in NY Listing Plans

On a more positive note, the company anticipates robust cash generation in the fourth quarter, thanks to lower grain prices and deferred livestock payments, as stated by CFO Guilherme Cavalcanti.

Meanwhile, JBS’ plans to list its shares in New York have hit a snag due to a request from American Depositary Receipt holders to vote on the proposal, as CEO Gilberto Tomazoni revealed. This dual listing in New York and São Paulo presents some obstacles to tapping into capital markets for short-term business expansion, although Tomazoni did not provide a timeline for the deal’s conclusion, as it is still under scrutiny by the Securities and Exchange Commission (SEC).

Concerns over JBS Seara’s 86% income plunge

In the face of declining U.S. pork prices, beef margins, and a global chicken glut, JBS SA, the world’s leading meatpacker, announces an 86% drop in Q3 net income compared to the previous year. Get the details on the financial challenges impacting the industry giant.

JBS SA Reports Sharp Q3 Profit Drop Amidst Challenging Meat Market Conditions

In the latest financial report from JBS SA, the world’s largest meatpacker. Their third-quarter net income took a staggering 86% plunge compared to the previous year, landing at approximately 573 million reais, or $116.63 million in U.S. dollars.

This disappointing performance fell short of the LSEG consensus forecast, which had predicted 724 million reais. To put things into perspective, it’s a far cry from the whopping 4 billion reais they raked in during the third quarter of 2022.

In their financial statement, JBS pointed out that their adjusted earnings before interest, tax, depreciation, and amortization, often referred to as EBITDA, stood at 5.40 billion reais. This figure managed to surpass consensus estimates, which were pegged at 5.15 billion reais.

JBS felt the pinch across its major business divisions, with net revenues plummeting to 91.4 billion reais, marking a 7.6% drop compared to the previous year.

JBS Grapples with U.S. Market Challenges: Beef Margins Plunge, Beef Exports Drop 19%, and Pork Faces Price Pressures

In the United States, their largest market in terms of sales revenue, JBS faced significant challenges. Beef margins took a sharp hit due to reduced cattle herds, which limited the availability of animals for slaughter and drove up costs. This predicament mirrored the situation faced by rival Tyson Foods.

According to JBS, U.S. beef exports experienced a 19% year-on-year decline through the end of September. This decline can be attributed to supply constraints combined with decreased Asian demand. The three primary destinations for U.S. beef exports remained South Korea, Japan, and China, as per the USDA.

On the pork front in the U.S., wholesale prices dropped by approximately 7% during the quarter compared to the previous year. Companies in the industry made efforts to reduce stock levels, according to JBS. However, there was a silver lining in the international market, as the company reported a 12% increase in pork exports, particularly to Mexico and Canada, from January to September.

Read: BRF SA’s Deepening Financial Troubles

Seara Processed Foods Division Faces Tough Times: Revenues Plummet by 13.3% Due to Global Chicken Oversupply, Despite Increased Sales Volumes

Turning our attention to their local division, Seara processed foods, revenues took a significant hit, declining by 13.3% year-on-year to 10.2 billion reais. This drop was largely attributed to a persistent global oversupply of chicken, which adversely affected export sales.

Seara’s exports in dollars dipped by 14% compared to the same quarter in the previous year, primarily due to lower export prices in the currency. However, this setback was partially mitigated by an increase in the volumes sold by the division, as noted by JBS.

In conclusion, JBS SA faced a challenging quarter, with declining profits across key sectors and market pressures impacting their bottom line. We will continue to monitor the situation as the world’s largest meatpacker navigates these turbulent waters.

Report: Largest Poultry Producers in Brazil

Source: Reuters

Largest Poultry Producers in Brazil

Explore Brazil’s paramount poultry industry with our in-depth report. Uncover the top producers driving global trends, sustainability endeavors, and market influence. Dive into a world of poultry dominance and innovation.

Report: Largest Poultry Producers in Brazil 2023

Brazil is a global leader in the production of poultry, contributing significantly to both domestic and international markets. The country’s favorable climate, abundant resources, and efficient production practices have propelled its poultry industry to remarkable heights. This report delves into the largest poultry producers in Brazil, examining their key statistics, market influence, sustainability efforts, and challenges.

Overview of the Poultry Industry in Brazil

The poultry industry in Brazil has experienced consistent growth over the years, becoming a crucial sector of the country’s economy. Brazil ranks among the top poultry producers in the world, renowned for its production efficiency and competitive prices. The industry is concentrated in several key states, including Paraná, Santa Catarina, and Rio Grande do Sul.

Leading Poultry Producers

JBS S.A.

JBS S.A. is one of the world’s largest meat processing companies and a major player in the Brazilian poultry sector. The company operates numerous poultry processing plants across the country. It is known for its integrated supply chain, from breeding to processing and distribution. JBS has a strong domestic and international presence, exporting poultry products to various markets.

BRF S.A.

BRF S.A. is another prominent poultry producer in Brazil. The company was formed as a result of a merger between Sadia and Perdigão, two major players in the Brazilian food industry. BRF is known for its diversified product portfolio and extensive distribution network. It has a significant global footprint and is a major exporter of poultry products to different countries.

Aurora Alimentos

Aurora Alimentos is a cooperative that operates in the southern region of Brazil, particularly in Santa Catarina. It is known for its focus on quality and sustainability. Aurora Alimentos produces a wide range of poultry products, including fresh and processed meat. The cooperative’s commitment to environmental and social responsibility has earned it recognition in the industry.

Market Influence

The largest poultry producers in Brazil hold substantial influence over both domestic and international markets. Their production volumes, efficient supply chains, and competitive prices make them key players in meeting global poultry demand. Brazil’s ability to produce poultry at a large scale has positioned the country as a major exporter to markets across the world.

Sustainability Efforts

In recent years, sustainability has become a crucial focus for the poultry industry, including in Brazil. Many of the leading poultry producers have taken steps to improve their environmental impact, animal welfare practices, and community engagement. Initiatives include reducing greenhouse gas emissions, adopting more sustainable feed sources, and implementing responsible production practices.

Challenges

While the Brazilian poultry industry has achieved significant success, it also faces challenges. These include concerns related to disease outbreaks, food safety regulations, and environmental sustainability. Disease outbreaks, such as avian influenza, can disrupt production and trade. Additionally, meeting the growing global demand for poultry while ensuring sustainable practices presents a complex challenge for the industry.

Read: Who are Argentina’s Largest Poultry Producers?

Conclusion

Brazil’s position as a global poultry production leader is underscored by the presence of major players like JBS S.A., BRF S.A., and Aurora Alimentos. These companies play a vital role in meeting domestic and international poultry demand. As the industry navigates challenges and embraces sustainability, its ability to balance growth with responsible practices will determine its long-term success.

Read: Top Brazilian Poultry Producers