Brazil's meatpackers likely to see more consolidation

Brazilian meatpacker Minerva SA expects further consolidation among Brazilian meatpackers as a result of changes in the country's tax rules.

Brazil's meatpackers should see more consolidation this year as tax rules for the sector create a "fairer and transparent" market place, Minerva's CEO, Fernando Galletti de Queiroz, told analysts during a conference call.

The suspension in November 2009 of PIS and Cofins taxes remove the benefits of tax evasion in the sector and will help companies that are well organised, the executive said.

Minerva will look at potential acquisition opportunities, Queiroz added, without giving details.

If the PIS and Confins suspension is applied to Brazil's poultry sector, the result would also be "healthy," he said.

Minerva reported net revenues of BRL689 million (US$386 million) in the fourth quarter of 2009, up 48% compared to the same period a year ago.

Brazil is the world's No.1 beef and chicken exporter.