Billionaire and founder of the world’s largest meat processing company JBS, Wesley Batista, stated that despite the US government imposing tariffs on imported beef, the strong demand for beef driven by high-protein diets domestically necessitates continued beef imports to meet market consumption.
He pointed out that the beef production in the US is insufficient to fully satisfy the increasing protein demand, especially in the high-end market. Despite the tariff policies implemented by the Trump administration, these measures have not effectively reduced import demand and may even lead to higher beef prices. JBS is a multinational meat processing group headquartered in Brazil.
Before President Trump announced the tariff increase, the import volume of Brazilian beef soared by 91%; however, with the US raising tariffs on Brazilian goods from 10% to 50%, the import volume dropped in August.
According to data from the US Department of Labor, in August this year, the average price of ground beef in various cities in the US reached a record high of $6.32 per pound, up 13% from the same period last year.
Batista said, “The US is facing the highest beef prices in history, so the need for more beef imports is growing as domestic production cannot meet the demand.” JBS is the largest beef producer in the US, with nine factories nationwide. In 2024, the company’s US operations accounted for half of its total revenue.
Batista mentioned that the tariffs have not impacted JBS because most of the beef the company sells in the US is locally produced. He added, “The price of beef in some markets is still rising, and demand remains very strong, especially in the US.”
Speaking at a conference in London in September, Batista pointed out that the increasing use of GLP-1 weight loss drugs (such as Ozempic, Wegovy) by more people may lead to an increase in protein demand as users need to consume more protein to maintain muscle.
Larissa Alvarez, an analyst at StoneX Financial Services and Trading Company, stated that the rise in US beef prices is mainly due to a decrease in cattle supply, drought leading to smaller herds on ranches, high calf prices, and ranchers preferring to sell rather than breed.
Alvarez noted, “Coupled with high per capita consumption, the strong structural demand domestically makes the US one of the largest beef-consuming countries globally.”
(This article references reports from the Financial Times)