JBS NV: PPC 2Q26 Conf Call Notes: U.S. Poultry Supply Growth Set to Moderate Ahead

Research evidence excerpt

JBS NV: PPC 2Q26 Conf Call Notes: U.S. Poultry Supply Growth Set to Moderate Ahead

J P M O R G A N Latin America Equity Research

30 July 2026

JBS NV Overweight

JBS, JBS US

PPC 2Q26 Conf Call Notes: U.S. Poultry Supply Growth Price (29 Jul 26):$14.23

Set to Moderate Ahead

LatAm Food & Beverages and

• U.S. poultry supply saw a significant increase in 2Q26, up 4.5% y/y, Agribusiness

exceeding initial expectations. This was primarily driven by improved Lucas Ferreira AC

industry growing conditions and materially higher livability y/y, resulting in a (55-11) 4950-3629

headcount above consensus. Looking ahead to Q3 and Q4, the breeding flock lucas.x.ferreira@jpmorgan.com

Banco J.P. Morgan S.A.

remains stable y/y, so the focus shifts to the increase in egg sets and their

Larissa Perez

conversion into meat pounds. No further improvements in livability are

(55-11) 4950-6400

anticipated, especially given the ongoing heat wave, which is expected to larissa.perez@jpmchase.com

moderate supply growth. The USDA forecasts supply growth of +2.5% y/y, Banco J.P. Morgan S.A.

but it is worth noting that last year’s mild September weather supported Froylan Mendez

favorable growing conditions, whereas Q3 this year appears warmer so far, (52-55) 5540-9482

potentially posing downside risk to WASDE projections. froylan.mendez@jpmchase.com

J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P.

• U.S. demand dynamics: 75% of customers indicate they will cut back on Morgan Grupo Financiero

dining out when budgets are tight. Foodservice continues to face challenges,

prompting increased promotional activity as operators compete for traffic, but

poultry tends to perform well in this environment. With consumers facing

budget constraints, retail demand remains robust - 75% of customers indicate