TheBeefSite Newsletter - 29 July 2009

Wednesday 29th July 2009

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Welcome to this week's newsletter

Editorial: With No Room Above, JBS Expands Below

This week, JBS SA, the largest beef producer in the world, announced a $2 billion US initial public offering (IPO). The huge offering, which happens to be the biggest in the US since March 2008, will be used to make investments further down the chain of production as beef demand begins to fall.

In effect, the JBS expansion aims to cut out the middle man in a growth strategy that encompasses the next five year's of company dealings. The plan includes expanding current value-added ranges whilst improving the distribution network with in-house cutting rooms, whereby meat would be cut and packaged ready for the supermarket shelves.

It's a bold move from JBS, but right now they have the money and the power to make. Already it has shown promising signs. After the announcement, JBS stocks jumped 3.5 per cent to 7.35 reais in Sao Paulo trading, the highest since June 26.

Analysts say that the new money from the IPO will come at an important time. Competitors like Brazilian meatpackers Independencia SA and Arantes Alimentos Ltda. filed for bankruptcy protection earlier this year when the global financial crisis dried up credit. The $2 billion will help safeguard JBS succumbing to similar credit problems.

The beef giant may have reasons to feel positive about its latest decision, but grocery store butchers, whose businesses are likely to suffer, might have reason to see things a little differently.

Adam Anson

In the Shop

Wildlife Artwork Prints
Have a look at our range of animal artwork prints from Richard Whittlestone, a truly great wildlife artist.

This Week's Feature Articles

We have 5 new features this week:

For Now, an End to the Beef Hormone Dispute
The beef hormone dispute between Europe and the US ran for 20 years before recently being brought to a four year close. Adam Anson, reporting for TheCattleSite finds out what the resolution will hold.

Cycling of Phosphorus in Grazing Systems
Before addressing soil phosphorus levels under pastures it is important to gain a better understanding of the phosphorus cycle operating in our soils supporting pasture which is grazed by livestock, writes Fiona Leech, District Agronomist, NSW DPI. This report is a Primefacts publication.

Summer Pneumonia in Calves
One of the most frustrating things that can happen to a cow/calf producer is to have a set of healthy growing calves start developing pneumonia during mid-summer while the calves are still nursing the cow, writes Larry C. Hollis, D.V.M., M.Ag. extension beef veterinarian, K-State University.

Infectious Bovine Keratoconjunctivitis (Pinkeye) Study
Infectious bovine keratoconjunctivitis (IBK), commonly known as pinkeye, is a contagious bacterial disease that affects cattle worldwide, write Jose E. Rodriguez, Abebe Hassen and James Reecy, Iowa State University.

Consumer Attitudes Towards Beef Products
This Leopold Centre Center Progress Report identifies factors that influence consumer attitudes towards beef products using the conjoint market analysis tool.

Genus - Value through science and genomics

Company News

Boehringer Sees Sales Rise
GLOBAL - The pharmaceutical company Boehringer Ingelheim saw sales rise by 8.3 per cent in the first six months of 2009 compared to the previous year and because of a positive exchange rate this translated into growth of 15.7 per cent.

Global Beef Cattle Industry News