U.S. ranchers are moving to expand their herds from a seven-decade low, paving the way for a long-awaited recovery in beef supplies, according to top producer JBS NV. Wesley Batista Filho, chief executive officer of the Brazilian company’s North American business, said in an interview, “We are into herd rebuild right now. The economic incentives are there, the weather is helping.” That’s much-needed news for both meatpackers and consumers. A severe shortage in the world’s largest producer has sent cattle costs surging, wiping out billions in profits for companies such as JBS, Cargill Inc. and Tyson Foods Inc., while driving record beef prices at grocery stores. The move is backed up by a recent reduction in the number of female cows being sent to slaughter, which indicates more of them are being held for procreation, according to Batista. Still, it will take years for cattle supplies to recover, with no meaningful increase expected before 2027.
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