JBS S.A.

Rogrio Chiuzi
Animal Health and Production Manager
MERIAL AVIAN FORUM
APRIL 25th 2014

The History of JBS S.A.

Founded in 1953 in Anpolis city (GO)
Started to expand in 1956, when the subsidiary based in Braslia was built
In the end of the 90s the first exportation took place
In 2005 the company started a globalizaion process by buying Swift from Argentina
In 2007 JBS acquired Swifts operations in the US went public in Brazil
In 2009 Bertins operations were incorporated and Pilgrims from US was incorporated
Over 30 acquisitions were performed by the company in the last 15 years both in Brazil and abroad
In 2013 Seara Brasil was acquired, adding about BRL 10 billion to JBS income

PG.

Track record in acquisition and integration

Over 30 acquisitions in 15 years
2005

Globalization of JBS through acquiring Swift Argentina.

2007

JBS becomes the largest company worldwide in the meat

sector, as well as the largest Brazilian company in the food
industry. The company enters the swine market.

2008

A new production and commercialization platform

of sustainable meat was built.

2009
2010
2012

Poultry business

Inalca
Swift Foods Co.
Berazategui (Rio Platense)
Colonia Caroya

Tatiara Meat
(Swift Austrlia)

Tasman
Venado
Tuerto
Pontevedra
(CEPA)

Cceres
(Frigosol)

Smithfield
Beef
Five Rivers

Rio Branco
Cacoal 1
Cacoal 2
Porto Velho
Pedra Preta
Vilhena
(Frigovira) (Frigo Marca)

Frangosul
Agrovneto

100*

76
61,8
54,7

Rosrio
San Jose
(Swift Argentina)

Iturama
(Frigosol)

XL Foods

Rockdale Beef

JV Beef Jerky

Barretos (Anglo)

Araputanga
(Frigoara)

Fuso Bertin
JBS Couros
5 novas unidades

SB Holdings

JBS enters the poultry business in Brazil and

expands to Canada

Barra do
Garas
Andradina
(Sadia)
(Sadia)

Pilgrims Pride

Maring (Amambay)

The segments in which JBS participated were

diversified through acquiring Pilgrims Pride and
though the joint venture with Bertin.
JBS Swift Australia becomes the leader in the
sheep meat segment of the country.

Pres. Epitcio e
Campo grande
(Bordon)

Seara
Tramonto
Massa Leve

30,3

34,3

14,1
0,4

0,7

0,9

1,2

1,3

1,9

3,5

3,7

4,3

1997

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Net income (BRL billion)

Fonte: JBS
*Estimativa de valor anualizado

PG.

Ranking JBS

1st

Largest meat production

worldwide

1st

Largest leather producer

1st

Largest broiler production

worldwide

Largest sheep producer

st
1 worldwide

5th
Fonte: JBS

Largest swine producer

worldwide

PG.

Mercosul (R$0,4bi)

Leather:R$2,4bi

Austrlia (R$1,3bi)

Brasil(R$2,0bi)

USA(R$0,1bi)

Brasil(R$1,2bi)

Swine:R$8,2bi

Sheep:R$1,4bi

Brasil(R$24,4bi)

EUA(R$7,0bi)

Mxico(R$2,0bi)

Cattle:R$62,8bi
Brasil(R$9,2bi)

USA(R$16bi)
USA(R$27bi)

Broiler:R$27,2bi
Mercosul (R$1,4bi)
Canad (R$3,0bi)

Austrlia (R$7,0bi)

PG.

Broad supplying capacity

K84,5heads
perday

M12heads per
day

K70heads per
day

K25heads per
day

K100leather
articles daily
produced

K185
collaborators
PG.

Quality assuredbrands inthe participating markets

Mercosul

EUA

Austrlia

PG.

JBS Organization

MERCOSUL

USA

PG.

Main challenges of the Poultry Industry

Biosecurity
Emergent diseases
Brazilian legislation
Quality of Water
Rodent control
PG.

Main challenges of the Poultry Industry

Animal Health
Prophylactic program
Veterinary program
Biosecurity

PG.

10

Main challenges of the Poultry Industry

Reduced Feed Conversion

Genetics
Animal Health
Farm management: Ambience

PG.

11

Main challenges of the Poultry Industry

Animal Welfare and Medication

Solidlysettledforalongtime,Seara holdstheirwelfarepolicy
basedontheconceptoftheFiveFreedomsofAnimal
Welfare,whichare:
Freefromhungerandthirst
Freefromdiscomfort
Freefrompain,injuryanddisease
Freetoexpressnormalbehavior
Freefromfearandstress

PG.

12

Main challenges of the Poultry Industry

Animal Welfare and use of Medication

Equipmentischoseninordertocomplywithspecific(BEA)parameters,
sothebirdswillnotexperienceanysortofdiscomfortorpain.

Theseparametersareconstantlymonitored,checkedandregistered.

Inaddition,progressiveimprovementindicatorsareestablished.

Theseindicatorsareusuallyexpressedby:timeinlairage area,rateof
deadbirdsonarrival,breastblisters,footpadinjuries,mortalityrates,
injuriesinwingsandlegs

PG.

13

Main challenges of the Poultry Industry

Animal Welfare and use of Medication
Regardingbirddensityatthefarms Seara
complieswithbothEuropeanandBrazilian
regulatorydemands,anddefinesaverage
densitiesbelowthedemandedratesfor
mostsituations.
Weprovidespecialattentionconcerningleg
problems severalproceduresaredefinedand
adoptedbyaimingthereductionofleg
problems,suchasspecificlightprograms,feed
ingredientsandfinalfeedcontrol,litterquality,
monitoringofhockburn,etc.
PG.

14

Main challenges of the Poultry Industry

Animal Welfare and Medicine use
Theuseof any sort of substances (medicine,vaccine,others)is
forbidden,unless expressedly authorized by the Company.
Itistotallyforbiddenforthefarmertouseanysortofpoultry
productthatisnotsuppliedbySearas technicalassistance.
Theresponsibleuseofmedicinesandvaccinesisonerequirement
ofthePartnershipContract,TechnicalOrientations(OTs),Flock
Record(FML176)andisfrequentlyreinforcedduringtraining
sessionsprovidedbythetechnicalteam.Incaseafarmerusesany
poultryproductimproperly,theyareautomaticallyexcludedfromthe
contractedfarmerslist,andthecontractisterminatedduetoits
violation.Thereisanautomaticblockingsystemintheslaughter
ModuleoftheMtech (Brkill)systemthatmakesitimpossiblefora
flocktobeslaughteredwithouttheminimumwithdrawalrequired
periodrelatedtotheproductsusedinthewaterorfeed.
PG.

15

Thank You!
RogrioChiuzi
Rogerio.chiuzi@jbsfoods.com.br