January 19, 2007

Sadia and Globoaves resumes poultry processing contract

Sadia entered a two years outsourcing contract with Globoaves whereby the latter is to render poultry slaughtering services in its plant at Cascavel (Parana).

Sadia did not resume a contract which expired in May 2006 last year due to the bird flu situation, resulting in Globoaves seeking a deal with Tyson Foods.

The negotiations have now been suspended as Sadia looks increasingly likely to contract the processing of 190,000 animals a day to Globoaves. The new contract is renewable and does not allow interruption.

The poultry meat processed in the plant is to be exported to Egypt and Iran.