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Thursday, July 30, 2015
Brazilian meat companies in investment mode
Two Brazilian meat and poultry companies are making significant investments in expansion efforts.
Aurora Alimentos recently announced its acquisition of the pork production and slaughter business of Chapecó Companhia Industrial de Alimentos at Chapecó in the state of Santa Catarina. Meanwhile, BRF is investing in its processing plants in Mato Grosso.
Aurora has leased the facility since 2003, and its purchase – for a nominal value of was BRL235 million (US$74 million) -- was made as part of Chapecó’s bankruptcy proceedings.
Assets acquired include around 780 hectares in the pig farms and forested areas. Processing capacity at the plant is 2,700 slaughter pigs per day; it currently processes 2,000 head per day with 1,764 workers.
Aurora’s stated aim is to broaden the product mix to include sausages, smoked sausages, fresh pork sausages, hams, bologna and cuts. In 2014, the plant processed 510,000 pigs and produced 46,500 tons of pork and 80,600 of processed products.
Just prior to Aurora’s announcement, Pedro Taqes, Governor of Mato Grosso, announced that BRF is to invest a further BRR1.1 billion (US$347 million) over three years in its five processing plants in the state.
One plant – at Lucas do Rio Verde – will focus exclusively on exports to Russia. BRL100 million (US$31.5 million) will go to expand the plant at Nova Mutum and Várzea Grande will receive BRL80 million (US$25.2 million). The company also has plants at Nova Marilândia and Campo Verde.
More than 2,000 new jobs will be created, according to Governor Taqes.
According to the recently published OECD-FAO Agricultural Outlook 2015-2024 report, by 2024, Brazilian poultry meat production is expected to increase by 2.82 million tons and pork output by more than 830,000 tons.
Jackie Linden is a contributing writer for WATTAgNet.