JBS: The Global Protein Titan Thriving in Trade War Turbulence

Investors seeking refuge in a sector rattled by trade wars, supply chain chaos, and geopolitical fireworks? Look no further than JBS, the world’s largest meatpacker. While rivals like Tyson Foods and BRF stumble under the weight of tariffs and commodity volatility, JBS just reported a 78% surge in net profit—a blistering Q1 2025 earnings beat that screams “BUY NOW.” This isn’t luck; it’s strategic genius.

Let’s dissect why JBS is the best play in protein markets—and why it’s primed to dominate for years.

1. Trade War? JBS Doesn’t Play That Game
The company’s CEO, Gilberto Tomazoni, calls JBS’s global footprint a “multi-protein platform.” Translation: No single trade dispute can derail this machine.

• Geographic Diversification: JBS operates in 30+ countries, with no single market accounting for more than 25% of revenue. While Tyson frets over Mexico’s 25% pork tariffs and BRF’s Brazil-China soy-meat complex sputters, JBS is everywhere. Its U.S. beef division, Pilgrim’s Pride, and Brazil’s Seara unit are profit dynamos, while its $100M Vietnam plant expansion is a masterstroke for Asia’s booming middle class.
• Customer Mix: 60% of sales go to retail and foodservice—stable, recurring demand. Only 40% are commodity exports, making JBS far less exposed to trade shocks than rivals.

2. Operational Leverage = Pricing Power
JBS isn’t just big—it’s efficient. Its Q1 EBITDA hit 8.92 billion reais, crushing forecasts. How?

• Vertical Integration: JBS controls every step from feedlots to packaging. When U.S. cattle shortages spiked beef prices, JBS absorbed costs better than rivals. Its chicken and pork divisions (which are booming) offset beef’s headwinds.
• Cost Discipline: Seara’s record margins and Pilgrim’s Pride’s 36% revenue growth show JBS can squeeze profits even in tough markets. Competitors like Marfrig, bogged down by debt-fueled acquisitions, can’t match this.

3. The Trade War’s Silver Lining? JBS Wins Share
While rivals cower, JBS is pouncing.

• China’s Door Swings Open: U.S. beef faces 15% tariffs in China? JBS’s Brazilian beef? No such problem. Its $200M U.S. beef plant expansion? That’s a bet on post-trade-war dominance, as U.S. producers rebuild after cattle shortages.
• No “National Champion” Blinders: Unlike state-backed BRF and Marfrig, JBS operates globally without geopolitical baggage. It’s not just Brazil’s champion—it’s the world’s.

The Red Flags? Overblown

Skeptics cite rising Brazilian cattle prices and U.S. pork oversupply. Valid concerns—but JBS’s diversification shields it. Even if one region stumbles, others pick up the slack.

Bottom Line: JBS is the Protein Sector’s Safe Harbor

The stock trades at just 8.5x forward EBITDA, a steal compared to Tyson’s 12x. With a shareholder vote on its NYSE listing coming May 23—a move that could unlock a 20% premium—now is the time to load up.

Action: Buy JBS (ticker: JBS) now. The trade war isn’t an obstacle—it’s JBS’s launchpad.

Disclosure: This analysis is for informational purposes only. Always conduct your own research before investing.