News

Brazil cattle market tanks after scandal

Brazil’s cattle market has had its biggest losses in ten years following that country’s meat inspection scandal.  A Bloomberg News report says the scandal has put a financial squeeze on JBS, and the company is purchasing fewer cattle.  On top of that, JBS no longer offers cash on delivery of animals, but wants to pay producers as much as 30 days later. JBS is Brazil’s largest cattle buyer.

The situation has resulted in a 17 percent drop in Brazil’s cattle futures this year.  Producers worry about being paid for cattle delivered to JBS, and the meatpacker is using about 80 percent of its processing capacity.  JBS says volumes are improving.

Further complicating the market is the U.S. ban on beef imported from Brazil.  The USDA says the ban will not be lifted until the agency is satisfied food safety standards are met.