The world’s largest meat supplier is finding that labor shortages are affecting operations in every developed nation, limiting production and raising costs, according to JBS SA.
The issue is more acute in the U.S. though it also impacts operations in Europe, Canada and Australia, with a lack of direct and indirect workers, Andre Nogueira, head of JBS’s U.S. division, said Thursday during the Brazilian company’s earnings call.
While JBS USA has a full team in pork and beef operations, it doesn’t mean the U.S. division is delivering the same production it used to with the same employees in the past, he said. Workers don’t accept Saturday shifts anymore. Labor shortages are also seen in the whole supply chain, affecting logistics.
JBS USA’s beef operational costs rose on more labor expenses and benefits in the third quarter, while its pork unit faced hurdles to hire truck drivers, the company said in its earnings statement. In Europe, JBS’s chicken business was hurt by the lack of workers.
“It’s structural adjustment in the meat industry,” Nogueira said.