JBS Poised for Earnings Boost as Ground Beef Prices Surge 20.5% on Historic Herd Shortage
Ground beef has reached a record $6.67 per pound, up 20.5% year-over-year as U.S. cattle inventory has fallen to 85 million head, the lowest level since 1951. JBS, as the world’s largest meat processor with extensive U.S. beef exposure, stands to benefit from firm pricing and limited supply.
1. Record Beef Price Surge
In early 2026, average U.S. ground beef price climbed to a record $6.67 per pound, marking a 20.5% year-over-year increase and a 72% jump since January 2020.
2. Historic Herd Contraction
U.S. cattle and calves inventory has declined to roughly 85 million head, the lowest since 1951 and down 10 million head from 2020, as cattle cycles lengthen and producers limit herd expansions.
3. USDA Outlook and Production Trends
USDA projects total red meat and poultry production will rise 1% to 108.4 billion pounds in 2026, but expects beef output to shrink further, supporting a 7% increase in average steer prices to $240 per cwt.
4. JBS Exposure and Investor Implications
As the world’s largest meat processor with significant U.S. beef operations, JBS is positioned to see margin expansion from elevated beef prices and could benefit from lower feed costs ahead.