Marfrig benefits from record exports in Q3
- Brazilian based meat processor, Marfrig, has recorded a net profit of $125 million in the third quarter of 2020. This is more than six times higher than the profit recorded last year during the same time period, $18.55 million.
- Record exports from Marfrig’s South American operations and the Brazilian real devaluation against the U.S. dollar contributed to net revenue increasing by 32 percent to $3.12 billion for the meatpacker.
- The company’s South American operations alone saw net revenue increase 26.3 percent to $890.3 million; caused by a 19.3 percent increase in export volume and a 35.5 percent devaluation of the Brazilian currency against the U.S. dollar.
- Although the company reported record-high sales volume in North America, net revenue in the region fell by 0.6 percent to $2.2 billion because of a 4.8 percent decrease in average sales prices in the U.S. domestic market.
- Fifty-one percent of Marfrig’s total export revenue from South America came from sales to China and Hong Kong. Export revenue from sales to the U.S. increased by 100 percent in the third quarter.
JBS’ profit soars in Q3; U.S. beef production recovers
- Brazil’s JBS SA has recorded a net profit of $581.1 million for the third quarter; this is almost nine times higher than the net profit recorded during the same period in 2019.
- The company’s total revenue increased by 34.3 percent to $13 billion.
- JBS USA reported a net revenue increase of 28.7 percent for the third quarter compared to 2019’s third quarter.
- JBS USA Beef reported a 5 percent drop in net revenue to $5.3 billion.
- According to Andre Nogueira, chief executive officer of JBS USA, beef exports from the U.S. to China will become extremely relevant in the fourth quarter.
- JBS stated that beef production volumes increased in the third quarter, compared to the previous quarter, and have returned to pre-pandemic levels.
Senate bill aims to eliminate all CAFOs in 20 years
- Over the years, the agriculture industry has witnessed the transition from small production of beef, pork, poultry and other foods to massive operations producing these commodities.
- To address this situation, lawmakers and agricultural activists have drafted the Farm Systems Reform Act (FSRA.)
- Democratic U.S. Senator Cory Booker originally introduced the bill in January of this year.
- The bill targets concentrated animal feeding operations, CAFOs, and has the end goal of eliminating these large operations in the next 20 years. No CAFOs would be able to be built after Jan. 1st, 2040.
- Definition of CAFO: animal feeding operations that include a minimum of 700 dairy cows, 1,000 beef cattle, 2,500 pigs weighing more than 55 lbs., 10,000 pigs weighing less than 55 lbs., 500 horses, 10,000 sheep or lambs, or 55,000 turkeys.
- FSRA gained momentum through the summer as U.S. Senator Elizabeth Warren co-sponsored the bill in June, and U.S. Senator Bernie Sanders co-sponsored it in July.
- According to Joe Maxwell, former lieutenant governor of Missouri who worked with Senator Booker to author FSRA, the bill plans to do two things; bust up the monopolies and it begins to give alternatives to farmers to get off the treadmill of relying on government subsidies.
- One of the groups supporting this bill is the Union of Concerned Scientists.
- Ricardo Salvador, the group’s director and senior scientist of the Food Safety and Environment Program, believes FSRA will distribute wealth throughout the agriculture industry.
- Ken Herz, Nebraska Cattlemen’s Association President, said that his group opposes the bill because it would lead to higher costs for consumers and jeopardize food safety.
- Steve Dittmer, a beef industry commentator, countered Senator Booker’s claim that CAFOs are not required to maintain a treatment facility for livestock waste.
- Dittmer said that both state and national EPA agencies register, monitor, require extensive plans and structures to contain runoff, manage manure and fine violators.
- Even though there are numerous organizations and groups against this bill, Maxwell still claims the goal of the bill is not to put farmers and the agricultural industry at a disadvantage. Instead, he believes it will allow large and small producers to pave their own paths with their own operations.
Boxed beef prices
- Choice boxed beef: $226.50 (+3.66)
- Select boxed beef: $208.24 (-0.22)