JBS invests US$12.5M to expand metal packaging operations

BRAZIL – JBS SA, one of the largest meat processing enterprises in the world, revealed on Sept. 9 that it will invest 70 million reais (US$12.5 million) in Zempack, its subsidiary specializing in metal packaging. 

The investment aims to boost production capacity, particularly in packaging for deli meats, allowing JBS to significantly increase output by November 2024.

Zempack’s metal packaging, which serves both food and non-food markets, will see its deli meats packaging sector grow by nearly 180%, benefiting JBS facilities like JBS/Friboi Lins, located in the northwest of São Paulo. 

The US$12.5 million investment will be equally allocated between Zempack’s aerosol can plant in Guaicara and the packaging production at Lins.

JBS stated that the investment will include new equipment at both sites to support the expanded capacity. 

The company emphasized that metal packaging offers significant advantages in preserving food quality. 

In a statement, JBS explained that metal containers help maintain the natural properties of food and extend its shelf life, protecting products for up to two years, even under challenging transport and climate conditions.

The announcement follows JBS’s release of its second-quarter financial results for 2024, which showed mixed performance across its various business segments. 

While the company experienced growth in some areas, including Pilgrim’s Pride, JBS USA Pork, and Seara, the beef sector continues to grapple with the challenges of the cattle cycle.

For the quarter ending June 30, 2024, JBS reported a 6.8% increase in net revenue, bringing the total to US$19.3 billion, up from the same period in 2023. 

Gross profit surged to US$2.97 billion, a sharp rise from US$1.99 billion the previous year, while net profit reached US$329 million.

JBS’s North American Beef segment recorded a modest revenue increase of 3.1%, totaling US$5.99 billion for the quarter. 

Meanwhile, JBS’s poultry and pork divisions showed strong performance, driven by lower grain costs and improved supply-demand conditions in key markets like the U.S., Mexico, and Europe. 

The U.S. pork sector, in particular, saw revenue rise by over 21%, reaching US$2.16 billion compared to US$1.77 billion in the same quarter of 2023. 

Pilgrim’s Pride, JBS’s poultry division, exceeded expectations, reporting a 5.8% rise in net revenue to US$4.55 billion.