JBS CEO Gilberto Tomazoni, speaking alongside BRF CEO Lorival Luz, told an event in Sao Paulo that he expects the impacts of swine fever on the global meat market to peak in 2020.
JBS and Hong Kong's WH Group signed a supply and distribution agreement this week to provide the Chinese market with up to 3 billion reais ($717.26 million) of fresh beef, poultry and pork. WH has some 60,000 points of sale in China.
Tomazoni acknowledged that there is a lot of market chatter about Chinese importers seeking to renegotiate lower meat prices, without elaborating on whether JBS is holding such negotiations. JBS will build long-term relationships in China to help it better control prices, he said.
"In long-term commercial relationships, there are gains and losses to be had," Tomazoni said.
(Reporting by Ana Mano; Editing by Alistair Bell and Andrea Ricci)