JBS (JBSS3) Doubles Down on Diversification Strategy Amid Tariff Challenges, CEO Reveals in 2025

• Why Is JBS Betting Big on Diversification?
• Tariffs vs. "Hidden" Trade Barriers: What’s Worse?
• Can JBS Turn Manure into Gold?
• The Bottom Line: Agribusiness’s Tightrope Walk
• FAQs

In a world grappling with geopolitical tensions and trade tariffs, JBS (JBSS3), the global meat production giant, is reinforcing its diversification strategy across regions and protein sources. CEO Gilberto Tomazoni emphasized this approach at the 2025 Abag Congress, citing the 50% U.S. tariff on Brazilian beef as a key motivator. The company’s resilience hinges on its multi-regional operations, which offset localized disruptions. Meanwhile, Tomazoni criticized EU methane regulations as "flawed," advocating for Brazil’s sustainable farming models ahead of COP30. Here’s a DEEP dive into JBS’s game plan and the hurdles it faces.

Why Is JBS Betting Big on Diversification?

JBS isn’t just weathering the storm—it’s building an ark. With 280,000 employees worldwide, the company’s CEO, Gilberto Tomazoni, insists that diversification isn’t optional; it’s existential. "When one region stumbles, another picks up the slack," he explained at the Abag Congress. The U.S. tariff on Brazilian beef—a hefty 50%—only underscores this need. JBS’s revenue streams span the U.S. (its largest market), Brazil, Australia, and Mexico, creating a financial safety net. For instance, if tariffs squeeze profits in Brazil, booming U.S. sales can fill the gap. It’s like a global game of Whac-A-Mole, but with steak.

Tariffs vs. "Hidden" Trade Barriers: What’s Worse?

Tomazoni didn’t mince words: "Tariffs hurt, but Europe’s methane rules are sneakier roadblocks." The EU’s carbon calculations for cattle farming, he argues, ignore Brazil’s carbon-capturing grasslands and integrated farming systems. "Ruminants are carbon upcyclers," he quipped, pointing to Brazil’s "lavoura-pecuária-floresta" (crop-livestock-forest) model. His gripe? The EU counts emissions but skips sequestration—like judging a pizza by its crust alone. Whether this is protectionism or poor math, it’s a headache for JBS, which sees Europe as a premium market.

Can JBS Turn Manure into Gold?

Here’s where it gets quirky. JBS is pitching cow poop as the next big thing in circular economies. Methane emissions? Problematic, sure—but Tomazoni highlights how waste becomes fertilizer, closing the loop. Brazil’s COP30 delegation plans to showcase these innovations, hoping to flip the script on the country’s environmental rep. "We’re not just meatpackers; we’re bioenergy pioneers," he added. Skeptics might roll their eyes, but with carbon credits gaining traction, JBS’s waste-to-worth play could moo-ve the needle (pun intended).

The Bottom Line: Agribusiness’s Tightrope Walk

JBS’s strategy is a high-wire act: balance global diversification, dodge tariffs, and greenwash the critics. Tomazoni’s confidence is palpable, but challenges loom. The U.S. tariff spat isn’t cooling down, and EU regulations could tighten. Yet, with its multi-continent footprint and focus on sustainability, JBS is betting it can chew through the competition—one region at a time.

FAQs

How is JBS responding to U.S. tariffs on Brazilian beef?

By doubling down on geographic and protein diversification. The company leverages its operations in the U.S., Australia, and Mexico to offset tariff impacts in any single market.

Why does JBS criticize EU methane regulations?

Tomazoni argues the EU’s calculations ignore carbon sequestration in Brazil’s farming systems, calling the rules "unfair" and potentially protectionist.

What’s JBS’s plan for COP30?

The company aims to showcase Brazil’s integrated farming models as sustainable solutions, pushing for global recognition of its carbon-capturing practices.