Dive Brief:
- According to Reuters, Brazil's JBS, the world's leading beef exporter, will have enough cash in 2015 to pursue more acquisitions, but the company's focus lies with consolidating gains from the recent acquisitions it has already made.
- The most recent of these acquisitions was a takeover of Grupo Primo Smallgoods, a meats company based in Australia, which offers JBS better access to the Asia/Pacific markets. However, for now, JBS does not plan on establishing operations in Asia.
- The company instead plans on focusing on other markets, including South America, North America, and Australia, where JBS plans to foster organic growth.
Dive Insight:
Brazil's tenuous economic situation has only grown worse in recent months, but JBS appears unfazed by it. JBS CEO Wesley Batista says that the country's weak economic growth has not affected the company's domestic sales, and he instead mentions other markets that have had more of a negative impact, but he noted a comeback in JBS's Brazilian beef exports is unlikely this year.
According to Reuters, Batista said, "The greatest pressure over margins have come from the drop in exports, especially to Russia and Venezuela, due to the drop in oil prices and the devaluation of their currencies."