Brazil is one of the world’s largest beef exporters and, as a key player, meatpacker Marfrig has reopened two domestic facilities as higher availability of slaughter-ready cattle paves the way for a double-digit production hike.
A decision to reopen the Nova Xavantina and Pirenópolis refrigeration units in the central Brazilian states of Mato Grosso and Goiás was made due to the “current macroeconomic scenario”, said Marfrig.
The business has also been expanding production at four other beef plants based in the states of Goiás, Mato Grosso, Pará and Rondônia.
‘Sustainable growth’
Marfrig has been able to increase production, expected to grow by 25% this year, due to a positive cycle of cattle retention in the first quarter of the year. José Eduardo de Oliveira Miron, chief financial and investor relations officer at Marfrig, said the production expansion was in line with its “strategy to achieve sustainable growth”.
The favourable climate led Marfrig to readjust its beef slaughter capacity in Brazil. Globally, the business can slaughter close to four million cows per year across 27 factories in Brazil, Chile and Uruguay.
Meanwhile, Marfrig is not the only Brazilian meatpacker scaling up beef capacity, with the country’s biggest firm, JBS, temporarily less competitive as it untangles itself from a government corruption scandal.
In June, Brazilian firm Minerva SA announced it would reopen the Mirassol D’Oeste cattle slaughterhouse this month, nearly two years after it shut the plant and axed hundreds of jobs.
This comes after the firm tried to buy JBS assets in Argentina, Paraguay and Uruguay for $300m, only for a judge to block the takeover.