We expect a challenging US beef environment and view chicken and pork processor exposure as favorable on a relative spread basis.
- Pure-play chicken and pork processors PPC & SFD offer attractive spreads and will fundamentally outperform over the next 12-18 months
- US-beef exposed TSN trades tightest of all protein peers (by a significant margin) and faces undeniable headwinds; chicken segment performance and financial policy are key to watch in F3Q23
- JBS faces similar US-beef headwinds, but will benefit from upturns in the BRL and AUS beef cycles, strong PPC performance, and improved execution in Seara in F2Q23