Brazil-Big changes in the beef industry.

BRAZIL-SOME COMPANIES DOING IT TOUGH WHILE OTHERS ARE THRIVING.

As protein producers in Brazil continue to close plants, lay off workers and file for bankruptcy in a tanking global economy, JBS S.A. has made it a point to say the company experienced no margin losses in the first two months of 2009 and plans to ramp up production.

The São Paulo, Brazil-based beef giant said in a statement that it is conducting a study in March to determine which of its plants will increase production. JBS envisions hiring up to 5,000 new employees to accommodate the initiative in the first half of 2009.

JBS’s announcement comes just after Independencia S.A. filed for Chapter 15 bankruptcy in the United States and announced a restructuring plan, and weeks after Sadia and Perdigao announced permanent or temporary layoffs of thousands of workers.

Brazilian meat producers especially are reeling from a drop-off in export business caused primarily by a global credit squeeze. Exports fell by 35 percent to 81.8 million metric tons in January, from 124.7 million metric tons in January 2008, and export sales dropped 45 percent year-on-year, according to the Brazilian Beef.