Lucas Mussi

Lucas Mussi asked about the expected revenue and volume expansion from JBS's ongoing pork expansion projects in Iowa, specifically the two new plants. He also sought an update on the U.S. chicken market's profitability in Q4, considering declining prices, and the supply/demand outlook for 2026, including the impact of new genetic lines.

Answer

Wesley Batista Filho (CEO, JBS USA) explained that the Iowa pork plants (Perry and Ankeny) will produce sausage and ready-to-eat bacon/sausage, ramping up in 2027 to generate $500-$750 million in revenues with higher double-digit margins. Gilberto Tomazoni (Global CEO, JBS) addressed the U.S. chicken market, noting price drops in the big bird segment but confidence in Pilgrim's Pride's balanced portfolio. He highlighted limited infrastructure and genetic availability as constraints, and strong export demand for Brazil and the U.S. in 2026.

Lucas Mussi asked about the expected revenue and volume expansion from the ongoing U.S. pork prepared foods CapEx, specifically the two new plants in Iowa, and provided a timeline for their impact. He also inquired about U.S. chicken profitability in Q4 2025 given declining prices, and the supply/demand outlook for 2026, including the impact of new genetic lines.

Answer

Wesley Batista Filho, CEO of JBS USA, explained that the Iowa pork plants (Perry and Ankeny) are complementary, focusing on sausage and ready-to-eat bacon/sausage. He projected $500-$750 million in revenues with higher double-digit margins, with ramp-up expected in 2027, not 2026. Gilberto Tomazoni, Global CEO of JBS, addressed chicken, noting price drops were mainly in the big bird segment and that Pilgrim's Pride has a balanced portfolio. He expressed confidence in the 2026 chicken market due to infrastructure limits, genetic availability, and strong export demand, despite new genetics taking time to impact the market.

Lucas Mussi asked about the differing dynamics between poultry cuts and breeder stock housing, and which international markets BRF finds most attractive for the short and long term given its new export permits.

Answer

CFO Fabio Mariano noted that BRF manages its supply chain from the top and that breeder stock adjustments are part of managing overall supply, with a slight reduction expected next year. CEO Miguel Gularte highlighted that the immediate strategy is to capitalize on the 57 new permits to add value. He identified the Middle East (MENA) as a key growth market where BRF is a leader with an iconic brand, while also stressing the importance of diversifying destinations to maintain commercial health.

Lucas Mussi from Morgan Stanley asked for a short-term cost outlook, specifically if it's reasonable to expect grain costs to rise quarter-over-quarter in Q2. He also inquired about the sustainability of international prices into Q2, questioning if the Q1 strength was driven by non-repeating factors like Ramadan or a specific country mix.

Answer

CEO Miguel de Souza Gularte clarified that the company does not hold short-term grain inventories that would put supply at risk. He expects feed costs to remain stable from Q1 to Q2, with potential positive effects from ongoing efficiency improvements. Regarding international prices, he noted that the recovery was broad-based across all regions, not just Halal markets. He expressed confidence in Q2 resilience, as the company took advantage of good price levels in Q1 to extend its order book, providing more stability.