Brazilian meat giant JBS has unveiled a $200m investment plan to boost beef production at facilities in the US states of Texas and Colorado.
JBS said $150m will be allocated to its facility in Cactus in Texas, with the remaining $50m designated for a plant in Greeley in Colorado.
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The company plans to build of a fabrication floor and an expanded ground beef room in Cactus. In Greely, it is setting up a new distribution centre in Greeley.
The construction for these projects is expected to begin this year.
JBS said the investment will deliver “improved” efficiencies at the facilities and offer the potential for “increased production capacity” in the future.
Wesley Batista Filho, the CEO of JBS’ business in the US, said the investment is part of the company’s “commitment to the US beef industry and the American farmer and rancher”.
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By GlobalData“At JBS, we prioritise ongoing investments in our facilities to ensure our company and the rural areas where we live and work are positioned for success now and in the future,” he added.
The Cactus facility employs more than 3,700 staff and buys in livestock worth $2.9bn annually.
Applauding JBS’ latest funding, US representative Ronny Jackson from Texas said: “This expansion will improve production capacity for our ranchers and cattle feeders in the Texas Panhandle and bring much needed efficiencies to the facility that will help strengthen our beef supply chain and keep American agriculture competitive and resilient.”
The Greeley facility has more than 3,800 workers and buys in $3.1bn worth of livestock a year.
It emerged this week that JBS and its US subsidiaries had agreed to pay $83.5m to settle claims that it conspired to fix beef prices in the US.
In a statement sent to Just Food yesterday (4 February), the company’s US unit said it had agreed to paying $83.5m to settle the lawsuit with the plaintiffs, while maintaining the allegations “are frivolous and without merit”.
