SAO PAULO (Reuters) - Brazilian meatpacker JBS is prepared for a likely shift in the country's cattle cycle that could lead to reduced availability of animals for slaughter next year, an executive said on Wednesday.

WHY IT'S IMPORTANT

JBS is the world's largest meat producer and Brazil, the No. 1 beef exporter. A decrease in cattle supply in the South American country would come at a time when other meat producing nations, including the United States, face similar shortages.

KEY QUOTES

"The imminence of the cattle cycle shift brings challenges. We are preparing through partnerships, contracts, and close relationships with ranchers to preserve our volumes," Eduardo Pedroso, Executive Director of Origination at Friboi JBS, told reporters at an event in Sao Paulo.

"With crop-livestock integration, tech adoption, earlier slaughter age, and productivity gains, cycle impacts can be softened. That's what we expect," he added.

CONTEXT

Brazil has experienced a significant increase in cattle slaughter over the past 24 months due to oversupply, which allowed for higher processing rates in the country's meat industry. However, signs now point to reduced supply next year.

According to consultancy Datagro, cattle slaughter in the country is expected to drop over 9% in 2026 from this year, reaching 37.1 million animals, after estimated jumps of more than 16% between 2023 and 2024 and 3% from 2024 to 2025.