Brazil's JBS raises slaughter capacity by 25 pct

Mon Jul 6, 2009 5:28pm EDT
 
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SAO PAULO, July 6 (Reuters) - JBS SA (JBSS3.SA), the world's biggest beef processor, said on Monday it had risen its slaughtering and deboning capacity in Brazil by around 25 percent through the leasing of five more plants.

The facilities, all located in the center-western state of Mato Grosso, will raise the company's slaughter capacity in the South American country by 5,150 head per day to more than 26,000 per day, it said in a statement.

"The integration of these plants, which are cleared to export to the world's main markets, strengthens the company's position in Brazil," JBS said.

Brazil is the world's largest beef exporter and also has the biggest cattle herd, numbering some 200 million.

A wave of consolidation is expected to take place in Brazil's beef sector, which leveraged strongly in recent years and was hit hard by the global financial crisis. Several beef companies have filed for bankruptcy protection in recent months.

JBS has embarked on an international buying spree in recent years, which won it control of rivals in Argentina, Australia and the United States, including U.S. food processors Swift and Smithfield (SFD.N). (Reporting by Inae Riveras; Editing by Marguerita Choy)

 

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