BRF: Innovation in value-added poultry products

BRF is a leader in chicken exports and production in Brazil, with two iconic brands: Sadia and Perdigão, well known both within and outside the country.

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BRF products carrying the Perdigao and Sadia labels. (Benjamin Ruiz)
BRF products carrying the Perdigao and Sadia labels. (Benjamin Ruiz)

BRF is a global food company with 85 years of history, with presence in 140 countries. It is a leader in chicken exports and production in Brazil, with two iconic brands: Sadia and Perdigão, well known both within and outside the country.

The company works for the domestic and export market, with global accounts such as Burger King, McDonald’s, Subway, Popeyes, Wendy’s and Yum! Brands.

It also produces cold meats, including products such as cooked chicken breast, smoked and cooked and smoked turkey breast, among others. Traditional products such as sausages and salami are also available, along with fresh and seasoned chicken and turkey products, as well as other meats and products.

In 2019, BRF produced ─ according to the WATTPoultry.com Top Companies Database ─ 1,554 million chickens in Brazil alone. The company cannot depend on selling fresh chicken and in such a large and diverse country, so careful research and development of value-added products becomes necessary.

The BRF Innovation Center in Jundiaí, in the state of São Paulo, is where they have developed products that are already on the market and where they solve all the problems of products both for export and for the domestic market. This is a relatively new facility, built in 2012, located near São Paulo and Campinas, where the best universities in Brazil are located, as well as close to several airports and international services.

Innovation process

Working process at this center is focused on the consumer, supported by universities, suppliers, startups, researchers, specialists, and other companies, including the food sector, but of different segments.

“The idea is to accelerate the activity of prototypes to produce them as quickly as possible, replicate small-scale pilot production and in-store experiments,” explains Fabio Bagnara, director of research and development at BRF.

The center works on the evolution of centers of excellence in other categories and develops reverse innovation, for example, to the moment the animal is slaughtered, and then integrate it forward into the process. About 20-25% of a broiler is not meat and bone, but viscera, so they try to do research on how to use as much as possible. Finally, increasing initiatives of all those concerned is also in the process, as well as attracting new startups with a good potential.

Brf Fabio Bagnara Brasil

Fabio Bagnara, director of research and development at BRF.  (Benjamin Ruiz)

Innovation funnel

For BRF, innovation flow of is not a tube, where every idea that comes in, comes out, but it is rather a funnel.

“When we see that a project is not good enough, we keep it and wait, or simply we put it as part of the learning process,” says Bagnara. It consists of five steps:

  1. Idea validation
  2. Instructions for development
  3. Feasibility validation
  4. Recommendations for launching
  5. Follow-up and learning.

Opportunities for BRF brands

BRF’s main poultry brands are Sadia and Perdigão, which primarily deal with processed foods. Opportunities are divided into consumer categories. For example, BRF has noted for Sadia that there are more opportunities for breakfast. For lunch, opportunities are for both Sadia and Qualy brand.

“These two meals are the main reason consumers purchase BRF products,” says Bagnara.

The ideas behind these products are that they help in weight control, that are tasted in special moments, that improve nutrition, that are easily prepared, that are home-style products that can also be shared and please, or even to pamper yourself, in addition to hunger satisfaction.

Working platforms

There are several technology platforms that are used to work during two to three years, before a new product is released. One of these platforms is product stability and extended shelf life.

“In recent years, we have improved product shelf life,” he said.

They have also reduced food waste in some cases. Let us remember that Brazil is a very large country, which makes product distribution very difficult. Therefore, they look for improving shelf life for the end consumer, working with thermostable ingredients, additives, stronger packaging, stronger barriers, and materials, as well as new thermal and non-thermal processes such as dehydration, pasteurization, and sterilization.

BRF also works on reducing sodium and fat in food ─ a current global trend ─ in addition to the inclusion of natural additives. “Clean labels,” very much in Europe, are also a concern of the Brazilian consumer. Another platform is packaging and ingredients, or improving performance of home use, such as microwave oven, as well as new processes for coated products ─ breading, for example ─ such as nuggets. BRF sees that there is a future in this area and in which they plan to work more and more. Basically, is the use of new products for breading, portioning, and cooking without frying.

Inspiration source

The projects fed on different sources such as images or snapshots, perceptions and visions, new formulations, prototypes, as well as different geographical areas. “Because BRF is a global company, we learn about trends in different parts of the world and new technologies,” says Bagnara. 

In addition, BRF works with co-packers to meet the needs of certain products.

Challenges

Because BRF produces a lot of chicken, it needs to balance product lines. Therefore, as mentioned above, they work with co-packers to reduce investment risk. In this way, they start on a small scale, and then increase production internally into the future.

BRF has a high demand for fixed asset investment, so the company is interested in reducing labor costs through equipment and automation. However, much of the equipment is imported.

Technology platforms are a very good way to build barriers for competitors, as well as the project diversity with better governance.

 

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