JBS S.A. expands daily slaughter to 26K head

by Bryan Salvage
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SÃO PAULO, BRAZIL — JBS S.A. is expanding in Brazil adding five slaughter and deboning units. These units will increase the company's slaughter capacity by 5,150 head a day.

Specifically, the company leased the following facilities: The slaughter and deboning unit in the cities of Juara, Alta Floresta, Colider, Cuiabá, São Jose dos Quatro Marcos

Integrating these units, which are approved for export to major global markets, strengthens the company's position in Brazil. The facility of São Jose dos Quatro Marcos also produces a variety of quality, value-added processed products, including canned meats and a selection of frozen pre-cooked meats, which are exported to the main global markets. The plants at Juara and Colider also produce biodiesel from tallow, which also marks the company's entrance into this growing sector.

Integrating the units also increases the company's slaughter capacity in Brazil to more than 26,000 head a day. As the cattle herd increases in Brazil and the international markets improve, the company maintains its growth strategy, with a view to reaching the goals planned during the I.P.O. in 2007.

In leasing these units, JBS iterates its commitment with the Brazilian cattle production chain, demonstrating its long-term investment strategy in the sector.

"We agreed to this business as further proof of our commitment to this industry in Brazil where we will generate more than 3,000 new jobs, and strengthen the production chain as well as expanding our market share in the beef industry", said Joesley Batista, chief executive officer.

JBS said it is committed to buy cattle only from properties that sustain the environment and are in accordance with the current Brazilian regulation. The company is fully engaged in not acquiring animals from restricted property areas or that are under suspicion of having committed irregularities related to sustainability legislation on the land, the source of the company's raw material.

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