JBS, the world’s largest meat company and hide processor headquartered in Brazil posted record quarterly net revenues of nearly US$21 billion on August 13 as it navigates a challenging U.S. cattle cycle and deals with global geopolitical tensions. By ILM.

The company, which reported results for the first time after listing shares on the New York Stock Exchange in June, recorded net profit of US$528.1 million in the second quarter, representing a 60.6% annual rise.

According to Reuters, U.S.-based beef-packers will continue to reel from low cattle availability for about three or four quarters, with gradual improvements of the U.S. cattle herd happening gradually from late 2027. The world’s largest meat company said other factors affecting its U.S. beef operation, which accounts for about a third of its net sales, included the U.S. closure of its border with Mexico in May due to a flesh-eating parasite.

“The Mexican situation is obviously relevant,” said Wesley Batista Jr, who leads JBS’ U.S. operations. The Mexican and the U.S. governments are in talks for potentially reopening the border, he said, estimating around 1.1 million head of feeder cattle cannot go through at this point.