(Bloomberg) -- Brazilian meat producers are set to return to expansion mode after slashing debt as they seek to further capitalize on a surge in chicken profits.
Both JBS SA and BRF SA expect to boost capital spending in 2025, reversing the course seen over the past couple of years, the companies said Thursday in conference calls with analysts.
Meat companies are awash with cash. An impressive rebound in profits following last year’s plunge allowed them to quickly pay down debt and return capital to shareholders. The windfall has been fueled by higher chicken profits, which have benefited from a major drop in feed costs and booming consumer demand.
JBS, the world’s largest meat supplier, is looking to expand chicken production capacity both in Brazil and the US, as well as in its North American pork business, according to Chief Financial Officer Guilherme Cavalcanti. BRF said it’s planning to expand capacity in chicken and processed food in Brazil, as well as in Middle East plants.
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