JBS and Bertin form world’s biggest tanner

23 September 2009

Bertin have nine tanneries located throughout Brazil with an additional site in Dongguan, China. They have the capacity to process up to 22,000 hides a day of which 65% is from their own slaughterhouses. Following the merger the combined group will mean that Bracol will potentially have access to an additional 73,000 hides per day through JBS meatpackers located throughout the world. JBS have the capacity to process 15,000 hides a day in Brazil following the purchase of BMZ.

The merger raises their combined cattle slaughtering capacity to almost 90,000 head a day from 74,000 currently operated by JBS. The merger followed rival Brazilian meatpackers, Marfrig's failed attempt to buy Bertin earlier this year. Marfrig instead have bought a major stake in Uruguayan tanning group, Zenda Leather, instead.

The JBS - Bertin deal was announced by Joesley Mendonca Batista, ceo, JBS and Fernando Antonio Bertin, ceo, Bertin on September 16 and will mean that the new company will have the capacity to process 148,500 sq m of leather per day. It will be the leading beef processor in Brazil, Australia, Argentina and Italy and one of the leaders in the US. Total group revenues are estimated to be worth $30 billion.

JBS also agreed to buy bankrupt poultry processor Pilgrim's Pride Corp. in the US in mid September. JBS will now surpass Tyson Foods as the world's top meat processor after the Bertin and Pilgrim's Pride deals.

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