By Patrick Thomas

JBS, the world's largest meatpacker, said consumers' appetite for beef isn't waning despite rising prices.

Beef prices have been going up over the past two years after ranchers shrunk the size of their herds because of persistent drought conditions and low profit margins, sending prices for their livestock up. Retail ground beef prices are up more than 35% since the start of 2022, according to the Department of Labor.

Rising food prices in general have been a contentious topic among American consumers. Brazil-based JBS, the largest beef producer in the U.S. by sales, said consumers are getting used to the high meat prices and demand remains robust among U.S. shoppers. North American beef sales in its latest fiscal quarter increased 6% to $6.3 billion, JBS said Wednesday.

JBS Chief Financial Officer Guilherme Cavalcanti said in an interview that people globally are eating more beef and protein demand in general is on the rise. JBS is also a major beef producer in Australia and Brazil and ships products all over the world.

"Beef is the most preferred big meat," Cavalcanti said. "Whenever you have a higher disposable income everywhere in the world, you see more demand for beef."

JBS and other meat processors are benefiting from lower grain costs. The company posted a quarterly profit of $757 million, above what Wall Street analysts were expecting.

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(END) Dow Jones Newswires

November 14, 2024 18:28 ET (23:28 GMT)

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