Over the last five years, Marfrig bought 22 companies around the world, multiplying its annual sales revenue by 10, converting the company in the third-largest world meat processor, and its CEO, and owner, Mr. Marcos Molina, a former butcher, into one of Brazil’s most powerful entrepreneurs.
China, the main market for U.S. agribusiness exports in 2011, dropped down to the third position in 2012, according to USDA. The U.S. exports revenue to that country was affected by the reduction in the soybean exports, to US$25 billion, 14 percent less than the year before.
The company announced that it concluded the sale of its pork operation located in Caxias do Sul, Rio Grande do Sul state, South Brazil. The divestment will give the company, knee-deep in debts, some fresh air, which must help its financial restructuring plan.
Like this, many other companies have been suffering from the same chronic problem - the cost burden by the poor Brazil’s infrastructure, which has been putting a lot of pressure on the cost of logistics of the companies doing business locally, therefore reducing their competitiveness.
The USDA Agricultural Projection 2021 recently released foresees a promising, optimistic outlook for the meat industry over the coming years. According to the report, world meat demand and imports continue strong growth, especially in many middle- and low-income countries.
It is fragile and uncertain the future of the Brazilian operation of the French group Doux. After long-term difficulties to pay its broiler out-growers, in January the third shift of its Montenegro complex, Southern Brazil, the largest the company has in Brazil, has been discontinued.
Brasil Foods and Chinese giant Dah Chong Hong Limited created a joint venture company. The new company will allow Brasil Foods to processes meats locally, develop the Sadia brand name and distribute and sell its products thru the retail and food services in mainland China, Hong Kong and Macau, as well.
New meat plants are about to be approved to export into China. The Brazilian Ministry of Agriculture expects 9 beef plants, 47 chicken plants and 15 pork processing plants to be approved by the Chinese veterinary inspection service to export into China in the first semester of 2012.
On February 10, the South African International Trade Administration Commission announced an extra levy of 62.92 percent on the whole broilers imports and of 46.59 percent on the boneless cuts imports. The extra levy come in addition to the regular tariffs of 5 percent on whole broilers and 27 percent on boneless cuts.
Preliminary data from the Food and Agriculture Organization of the United Nations - still pending the closure of numbers for United States’ fourth quarter and Brazil’s last bimester - suggest that the average chicken meat price per ton in the international market set a new record in 2011. The analysis, which considers Brazil and the U.S., the two leading exporters, shows Brazil led, overcoming the US$2,000/MT threshold and thus setting a new record.