Argentina Increasing Grain Beef Herd

JBS is exploring feedlot business.

Published on: Jan 19, 2009

Brazilian beef giant JBS S.A. is considering entering the feedlot business in Argentina. Known for its grass-fed beef steaks, Argentina wants to expand production, but with land availability limited, it appears that feedlots might be an alternative way to expand beef production. JBS S.A. is already one of Argentina's largest beef exporters and it sees possibilities in Argentina.

Argentina has the highest per capita beef consumption rate in the world, a fact that has helped Argentina begin to shift from grass-fed to grain-fed production. Currently, about a third of cattle slaughtered in Argentina go through feedlots. In a few years, it is predicted that some 90% of the country's cattle will pass through feedlots.

JBS owns a 150,000-head feedlot in Sao Paulo, Brazil. Through the acquisition of Smithfield Beef Group it also owns Five Rivers Ranch Cattle Feeding, which has the capacity to feed more than 800-thousand head of cattle at once on operations in Colorado, Idaho, Kansas, Oklahoma and Texas.