Annual and Sustainability Report | 2019
Mozarlândia (GO)

JBS
A global food company

Value chain

As a global company committed to sustainability across the business, JBS ensures quality in all of its processes, from suppliers and producers to customers and consumers. This is why the Company invests in promoting continual enhancement of operating, manufacturing and product distribution standards in all of its businesses.

These guidelines covers a variety of work fronts, from comprehensive compliance with the various regulatory and certification requirements in the Company’s 190+ markets, to policies and processes related to value chain management (including responsible procurement of raw materials), partnerships with suppliers and team health and safety, training and other activities permeating work routines.

The Global Sourcing Department is the area tasked with developing and distributing policies on supplier relations and responsible procurement; however, each business has the autonomy to create relationship actions specific for its partners. This is done to make partnerships more effective, while also guaranteeing uniform criteria, practices and objectives across the entire production process.

In Brazil, selection and maintenance of all JBS suppliers is based on the South America Supplies Policies, which covers the rules, guidelines and best practices for safe, upstanding and competitive business. This policy is furthermore aimed at assuring product quality, supply, total competitive cost, governance and traceability across the hiring and procurement process, which is also guaranteed though Electronic Market, a procurement system.

the use of monitoring via satellite imagery, georeferenced maps of farms and monitoring of official data from public agencies. See more on Chapter2/Commitment to sustainability/Product integrity.

Seara also has a robust quality auditing process, for certifying new suppliers as well as monitoring active suppliers. Included in this process is a commitment to quality and food safety, maintenance and training, in addition to requirements related to good manufacturing practices. The Company assesses its suppliers from breeding to receipt of inputs at production units, in relation to quality and punctuality.

The nature of JBS businesses around the world means that a broad and diversified base is used for suppliers of raw materials and inputs as well as for manufacturers of materials such as packaging, ingredients and services, information technology (IT) and recycling, among others.

In the United States, suppliers for JBS USA who come into direct contact with food undergo a strict assessment before becoming Company partners, in addition to Global Food Safety Initiative (GFSI) audits. The Company values new local suppliers who are cost-competitive and have the ability to work with the Company’s requirements and standards. This helps in further stimulating the economy in the communities where the Company operates. JBS Australia has a Supplier Relationship Management Program to assess matters including safety, collaborative business updates, demand and precision forecasting, service and quality, sustainability and innovation, among others.

Itumbiara (GO)

Customers

JBS creates value in the products and services it supplies around the world, earning the trust of customers. This is the result of a commitment to produce and provide the highest quality of products and services, as well as the goal of having close relations with every stakeholder.

JBS operates globally in both the B2B (business to business) and B2C (business to consumers) segments and now has over 275,000 customers in more than 190 countries. The Company’s relations with stakeholders range from final consumers to corporate customers who make up major retail chains and food service. This is done by making it a priority to sustain close, harmonious and constant relationships in order to learn about and fulfill the wants and needs of each group in different markets with excellence.

The Company invests in customized development of high-quality products for corporate customers, providing services that support them in making their businesses more profitable.

Through the Top Grade Butcher channel, Friboi, for example, promotes training for butchers at major retail chains and supports management and creation of a customized environment. In 2019, the program surpassed the milestone of 1,000 stores. During the year, Seara also joined Top Grade Butcher, while also relying on the Perfect Store program (learn more about this program).

Another innovation was the development of 1953 Friboi by Pão de Açúcar, held in some of the retail chain’s stores in São Paulo, Rio de Janeiro and the Federal District. One highlight of this model is its dry-aged beef products, sold at some of these stores. Swift, in turn, has an in-store program, with personalized brand-managed spaces in major retail chain stores.

At the JBS USA operation, Just Bare®, a Pilgrim’s brand, became a sales leader in fresh chicken sales on Amazon Fresh, an Amazon.com subsidiary specialized in food sales, with product deliveries in select cities in the United States.

For end consumers, market surveys and relationship channels, such as Customer service and social media, are a valuable source of information on public needs and trends. In the United States, consumers have access to a range of tools, such as the Consumer Hotline, phone lines and e-mail accounts that provide options for communicating with the Company. Service teams monitor feedback, interact with consumers to answer questions, and keep a database to track trends and supply performance reports.

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