ASF causes surge in demand from processor JBS

15 May 2019, at 9:38am

China’s African swine fever outbreak has caused a surge in demand from JBS, the world’s largest beef processor.

According to reporting from Reuters Brazil, industry processor JBS is set to reap the benefits of additional demand in light of China’s reduced pork production.

According to analysis from JBS, Australian sales of beef to China have increased by 80 percent since January. This trend could indicate that countries exporting meat products could see an increase in demand. The analysis emphasised that sales of all proteins, not just pork, could rise because of the virus.

ASF appears to be boosting the company’s cash flow, and this trend is expected to continue as the disease progresses.

You can read more about this story and its impact on the stock market here.