Economy Consumption Inflation Products GDP Reinaldo Canato/VEJA.com
In Brazil it is National Supply Company (Conab) estimates that the consumption of beef in the country is expected to fall to its lowest level in 26 years. By the end of 2022 it should be a total of 24.8 kg per person. The difference is that now, due to inflation, Americans are also beginning to encourage a change in their eating habits. Based on monthly research from Kansas State University, analysts at XP Follow important changes in the American scenario. “With higher beef, pork and poultry prices, coupled with rising inflation and ongoing discussions of rate hikes, we believe US consumers will be forced to consider some changes in their habits and will likely change the consumption profile of proteins,” they write you.
At this point the effect z JBS and marfrig, two of the largest companies in the industry, is different, according to analysts. “For JBS, since it covers the three main proteins (beef, pork and poultry), we think this change should have less of an impact, although this is not the case for Marfrig as the company is only exposed to beef,” opine you. “However, as this trend was already anticipated along with a rise in cattle prices, we believe the market has already priced in the cycle change in shares of both companies and therefore reiterate our Buy recommendation.” Yeartodate, shares of Marfrig are down 27% while those of JBS are down 11%, both at B3.
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