JBS Shuts US Beef Plants as Cattle Herd Hits a 74-Year Low

Agribusiness

Key Facts

—The closures. JBS is shutting two US beef plants, cutting about 8 percent of its American beef capacity.

—The herd. The US cattle herd has fallen to about 86 million head, its lowest level since 1951.

—The jobs. The two plants, in Pennsylvania and Tennessee, employ roughly 1,700 workers between them.

—The paradox. High beef prices are hurting, not helping, processors squeezed by the scarcity of animals.

—The shift. Brazil overtook the US in 2025 to become the world’s largest beef producer.

JBS, the world’s biggest meat company, is closing two of its beef plants in the United States, a rare retreat driven by an acute cattle shortage. The American herd has shrunk to its smallest in more than seventy years, and even the largest processors are feeling the squeeze.

The move removes about eight percent of the company’s US beef capacity, BPMoney reported. Analysts called it almost unheard of, saying they could not recall the Brazilian giant ever deliberately shutting a core protein operation like this.

For a foreign investor, the story cuts to the heart of a paradox. Beef has rarely been more expensive, yet the firms that process it are struggling, because the problem is a lack of animals, not a lack of demand.

Why a cattle shortage is closing profitable-looking plants

The logic looks backwards at first. Beef prices are high, but a processor makes its money on the gap between what it pays for cattle and what it sells the meat for, and that gap has collapsed.

With too few animals to go around, plants bid each other up for scarce cattle. Fixed costs then get spread across fewer carcasses, so a factory running below capacity can bleed money even when meat sells dear.

Closing the weakest sites is the response. By concentrating slaughter in its most efficient plants, JBS aims to lift utilisation and defend margins until the herd recovers.

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Rio Times · Live Ticker Intelligence

JBS N.V.

JBS · NYSE / Brazil BDRConsumer DefensivePackaged Foods

Share price · live

$11.95

▼ -2.01% today

Market cap

$40.1 bn

776.1 mn shares

P / E

7.5

EPS 1.62

Dividend yield

8.2%

$1.00 / share

The company

Employees

283,000

Headquarters

Amstelveen

Listed since

2025

Website

JBS N.V., together with its subsidiaries, engages in the processing of animal proteins, encompassing activities related to beef, pork, lamb, and poultry worldwide. The company is involved in the production and marketing of prepared foods and other related products, as well as operations in leather, collagen,…

Financial performance · FY · BRL

RevenueNet income

2023

R$363.8 bn

−R$1.1 bn

2024

R$417.0 bn

R$9.6 bn

2025

R$471.1 bn

R$11.1 bn

Net income rose to R$11.1 bn in 2025, from R$-1.1 bn in 2023.

Valuation & returns

EBITDA margin

6.7%

Net margin

2.0%

Return on equity

22.1%

Price / book

4.90

Enterprise value

$33.0 bn

Revenue growth · YoY

+10.7%

Latest earnings

Q1 2026 — reported EPS 0.20 vs 1.13 expected

Missed −82%

Peers & comparators

JBS BDR

▼ -2.67%

MBRF3 · BRF / MBRF

▼ -4.01%

BEEF

▼ -0.65%

Data: EODHD Fundamentals & live feed · The Rio Times Ticker Intelligence

A slow road back for the US herd

The shortage will not ease quickly. Rebuilding a cattle herd takes years, because ranchers must hold back females to breed rather than sell them, tightening supply further in the short term.

JBS is not alone in adjusting. A rival US processor closed a large plant of its own earlier in the year, a sign that the pain runs across the whole American beef industry, not just one company.

The company is still spending selectively. It is investing heavily in a Texas plant even as it shuts smaller sites, betting on concentration in regions where cattle are more reliably available.

The damage already shows in the numbers. In the first quarter, the North American beef unit ran at a negative margin and helped drive group profit down sharply, even as Brazilian operations held up.

There is a regulatory shadow too. US antitrust authorities opened a criminal probe this year into the biggest beef processors, two of them Brazilian-owned, adding legal risk on top of the operating squeeze.

Against that backdrop, Brazil looks like the winner. Strong Asian demand and a healthier local cattle cycle have lifted Brazilian output, cementing the country’s new place at the top of the global beef table.

For JBS, that home strength is the cushion. As its US beef arm shrinks, the group leans on Brazilian beef and its large poultry business to keep consolidated results from sliding further.

The wider signal is one of discipline. A market leader willingly cutting capacity suggests the industry is prepared to swallow short-term pain to bring supply and demand back toward balance.

Why does a cattle shortage hurt if beef prices are high?

Because processors earn on the margin between cattle and meat, not the meat price alone. When animals are scarce, plants compete fiercely for them, driving up the cost of cattle faster than meat prices, and factories running half-empty can lose money even in a high-price market.

What does this mean for JBS investors?

JBS, listed in both São Paulo and New York, has seen its US beef unit swing to losses, dragging on group profit. Its geographic and protein spread, from Brazilian beef to US and Brazilian poultry, cushions the blow, and several analysts keep buy ratings while trimming near-term forecasts.

How does Brazil benefit?

Brazil overtook the United States in 2025 as the world’s largest beef producer, helped by a healthier cattle cycle and strong Asian demand. That gives Brazilian operations an edge exactly as US supply tightens, one reason JBS leans on its home base to offset American losses.