JBS is entering the egg market as prices in the U.S. soar due to widespread bird flu outbreaks that have limited the supply. Cal-Maine Foods and other egg producers have commanded significant profits as demand continues to outpace supply even amid higher prices.

Brazilian company JBS SA, the world’s biggest meat producer, has made its first foray into the egg sector at a time when concern over the global spread of bird flu is buoying prices.

South America’s top egg producer, fresh off a sale of a 50% stake in the company to meat producer JBS SA, said it is weighing a merger or acquisition to enter the US market.

Brazilian meatpacker JBS has agreed to buy a stake in Mantiqueira Alimentos, it said on Monday, marking the food giant's entry into the egg sector in a deal that valued Mantiqueira at 1.9 billion reais ($321 million).

Brazilian meat producer JBS has acquired a 50% stake in one of South America's largest egg producers, Mantiqueira Brasil. Why it matters: This comes amidst a global surge in egg prices due to avian flu outbreaks.