JBS S.A. is currently the world's largest protein producer and exporter having a daily harvesting capacity of 92.8 thousand head of cattle, 48.5 thousand head of pork, 7.2 million birds and 24.5 thousand head of lamb. The company's operations includes 140 production plants, 61 located in Brazil,... More
Friday, Sep 1312:59 PMU.S. beef industry seen struggling, Brazil may have peaked: Moody's
Friday, Sep 1312:59 PM| Comment!
- "The performance of the world's two largest beef-processing industries will differ markedly through next year," Moody's says, referencing challenging conditions for the U.S. market and a strong cycle in Brazil.
- Earnings for U.S. companies will "be the worst in a decade" in 2013 and 2014, Moody's thinks.
- Brazilian producers, by contrast, "should remain profitable" even as "their EBITA margins could deteriorate next year due partly to higher costs related to recent capacity expansion and to expectations of no further decreases in cattle prices."
- Diversified players such as Tyson (TSN) and JBS S.A. (JBSAY.PK -2.6%) should be able to offset beef business profit declines with "stronger earnings from other proteins."
- Pure beef players like Minerva (MRVSY.PK) may face pressure "when the cycle turns" in Brazil.
Friday, Aug 162:43 PMMerck says it hasn't seen any safety issues with Zilmax
Friday, Aug 162:43 PM| Comment!
- Merck (MRK -0.8%) defends Zilmax in light of its earlier decision to pull it off the market, saying it hasn't seen any safety or effectiveness issues beyond those observed in clinical trials before it was introduced in the United States in 2007.
- "You will see lameness even in normal feedlots in animals that are not given beta agonists," says K.J. Varma, head of research for MRK's animal health unit. "Based on studies we've done, we don't see anything out of the ordinary in terms of lameness" associated with Zilmax.
- The company has done 30 studies in 60,000 animals since Zilmax was introduced,
- Separately, Brazil's JBS SA (JBSAY.PK) says it will continue to accept animals fed with Zilmax at its U.S. operations unless evidence emerges that the product is potentially harmful to their well-being, CEO Wesley Batista said in an interview.