JBS: Mad cow case won’t hurt company

JBS S.A. told shareholders Wednesday that a confirmed case of mad cow disease in California would not jeopardize the company’s business.

The company repeated statements from the U.S. Department of Agriculture that the mad cow case posed no risk to the food supply. The disease in the dairy cow was the first new case since 2006.

“The general consensus is that international trade should not suffer any material disruption as a result of this incident,” JBS said in a statement.

If the market reaction is “greater than expected,” JBS believes that “the company is best positioned and carries a natural hedge due to its global presence and the diversity of proteins.”

JBS is the majority stockholder of Pilgrim’s Pride, the Greeley-based chicken producer whose stock improved 7.5 percent to close at $7.15 on Tuesday when the mad cow case was announced.

“JBS is the second largest chicken producer globally and has relevant pork production in the U.S., businesses which would benefit from any spillover,” the company said.

Meanwhile, U.S. live cattle futures rebounded Wednesday after posting their largest decline in seven months Tuesday, Reuters reported.

You have 2 free articles remaining this month.
Want to see more? Login or Subscribe.

Leave a Reply

Your email address will not be published. Required fields are marked *


Social Network

Facebook Icon
Twitter Icon
LinkedIn Icon
©2016 BizWest The contents of this website are copyright BizWest Media, LLC. All rights reserved.
Use of any of this informatino or media on this site is strictly prohibited withotu express written consent.