International

Marfrig strengthens its strategy to focus on high value added products

Marfrig Global Foods, the largest hamburger producer in the world and one of the global leaders in the beef protein market, announced another step in its process of strategic focus on high value-added product markets and brands. The company – which controls National Beef, the fourth largest and most efficient beef producer in the United States, and BRF, owner of brands such as Sadia, Perdigão and Qualy - sold to Minerva Foods cattle slaughter units in South America, in a transaction of 7.5 billion reais, with 1.5 billion reais paid upon signing the contract. The industrial complexes in the region, which integrate slaughter and production of high added value items, with greater scale, efficiency and profit margins, remain under the management of Marfrig,

Posted on Sep 02 ,00:05

"We are increasingly consolidating ourselves as a global company, with geographic diversification, high added value products and leading brands in their segments", says Marcos Molina dos Santos, founder and chairman of Marfrig's Board of Directors. "We see huge opportunities for growth, with higher and more resilient margins".

Marfrig's strategic focus on high value-added, industrialized and branded products began in 2018, with the acquisition of National Beef, which, in addition to supplying the US market, exports to some of the most demanding customers in the world . The following year, the company acquired Quickfood, in Argentina, owner of leading brands such as Paty and Vieníssima!, and the industrial complex of Várzea Grande, in Mato Grosso. In 2020, there was the acquisition of Campo del Tesoro, in Argentina, focused on the production of hamburgers. And, last year, Marfrig inaugurated the most modern hamburger factory in the world in Bataguassu, in Mato Grosso do Sul. Also last year, Marfrig acquired share control of BRF, one of the largest food companies in the world. From 2018 to 2022, the participation of industrialized and branded products in the net revenue of the South America operation went from around 5% to almost 20%. Processed production capacity has doubled in the last five years.

Marfrig maintains the equivalent of 60% of the total revenues obtained by the South America Operation in 2022, with double-digit margins, and continues to export to more than 140 countries. The company maintains all its industrial complexes in the region: Pampeano, in Rio Grande do Sul, the largest exporter of canned beef by-products to Europe, and the slaughtering and processing units for high added value and branded products in Várzea Grande, in Mato Grosso, and Promissão, in the interior of São Paulo. The company also continues with its new hamburger factory in Bataguassu, in Mato Grosso do Sul, in addition to the industrial complex in San Jorge, in Argentina, where it produces items from brands such as Quickfood, Paty and Vieníssima!. In Uruguay, the industrial complex of Tacuarembó remains under Marfrig's control, leader in the production of organic meat, and the Fray Bentos processed products unit. In Chile, the company maintains its storage, distribution and trading complexes.

The sale of slaughter assets does not involve an exchange of shares and is subject to approval by regulatory and competition authorities. The slaughter assets sold to Minerva are the following: Alegrete and Bagé and São Gabriel, in Rio Grande do Sul, Bataguassu, in Mato Grosso do Sul, Chupinguaia, in Rondônia, Mineiros, in Goiás, Pontes e Lacerda and Tangará da Serra, in Mato Grosso. In Brazil, three more inactive plants will be sold – in addition to these. In Argentina, the Villa Mercedes cattle slaughter unit will be sold. In Chile, the sheep slaughtering unit in Patagonia and, in Uruguay, the cattle slaughtering units in Colônia, Salto and San José. 

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