JBS USA, a branch of the Brazilian-owned meat processing company, has been granted nearly $78 million in pork contracts through the United States Department of Agriculture’s (USDA) Trade Mitigation Program that was put in place last August as part of a relief effort due to the ongoing trade war.
“JBS bid an average of $2.56 per pound for five-pound pork loin cuts, while its competitors bid an average of $3.80 per pound. The company bid as low as $2.02 for the cut,” said the Midwest Center for Investigative Reporting (MCIR).
This contract will make JBS the largest recipient of the $300 million the USDA has put aside for pork producers impacted by the tariffs put in place by China in the spring of 2018.
JBS USA has over 300 hog farms in the states. According to MCIR, “JBS’ facilities in Minnesota, Iowa, Illinois and California have won trade mitigation contracts with the USDA.”
“We’re buying U.S. produced agricultural products. The premise behind procurement is to take product off the market and support prices. This will help U.S. Farmers,” said Secretary of Agriculture Sonny Perdue in response to the MCIR report.
He explained that the USDA granting this kind of money to JBS is no different than an American buying a car from a foreign-owned company that has plants in the U.S.
“JBS is a Brazilian company operating in the United States, buying product from U.S. farmers. What we do through these companies – it’s not to help the companies – they offer a bid to us based on buying U.S. farmers production. This helps U.S. farmers by supporting prices,” he said.
JBS is the world’s largest poultry company and a global leader in the pork and beef industries. Now it is also a player in the plant-based protein sector.