Can JBS (JBS) Leverage Its Paraguay Expansion to Strengthen Global Poultry Market Position?

• JBS announced it will invest US$70 million over the next two years to expand and modernize its recently acquired Campo 9 chicken processing plant in Paraguay.
• This move marks a significant expansion of the company’s protein diversification strategy and could boost Paraguay’s role in global poultry exports.
• We’ll explore how JBS’s major push into Paraguayan chicken production can influence its investment case and international market access.

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What Is JBS' Investment Narrative?

For anyone considering JBS as a potential holding, the investment thesis has typically centered on its global protein platform, consistent shareholder returns through dividends and buybacks, and the board’s strong governance track record. The recent announcement to invest US$70 million in expanding the Campo 9 chicken plant in Paraguay speaks directly to JBS’s ongoing push for protein diversification and an increased role in international poultry markets. While this move broadens JBS’s export potential and helps balance exposure across geographies, it also comes as the company faces slowing forecasted earnings growth and relatively muted revenue outlook compared to broader markets. Short term, the Paraguay expansion doesn’t dramatically shift the immediate risks, which are still led by tight global meat margins, debt pressure, and foreign exchange swings. However, should the investment successfully ramp up export capacity and profitability, it could become a more meaningful catalyst for future growth and improved confidence. On the flip side, quick execution and regulatory risk around international meat trade remain critical to watch for prospective investors.

But with tight global margins and execution risks, investors should never overlook potential downside surprises. Despite retreating, JBS' shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Six individual fair value estimates from the Simply Wall St Community range from US$12.55 to US$49.01 per share. With this wide spectrum of retail investor outlooks, consider how execution risk and Paraguay’s export ambitions may shape JBS’s future position and your own view.

Explore 6 other fair value estimates on JBS - why the stock might be worth over 3x more than the current price!

Build Your Own JBS Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your JBS research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free JBS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate JBS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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