April 8, 2013

Marfrig, Walmart and TNC collaborate to boost Brazil's beef industry

In order to help 20 beef cattle ranchers in the Brazilian state of Pará implement business practices to guarantee cattle origin and sustainability, Marfrig Alimentos, Walmart and The Nature Conservancy (TNC) have jointly invested BRL500,000 (US$247,512) in a programme launching this week.

The 20 ranches, which are still being selected but will be from the municipalities of São Félix do Xingu and Tucumã, are likely to already be regulated by Brazil's Rural Environmental Registry (CAR), a mapping system that includes the environmental features of each property.

The joint investment by Marfrig, Walmart and TNC will help the ranchers go beyond CAR registration by restoring forested areas on their property and increasing pasture land and the number of grazing livestock. The founding members want their initial investment effort to attract more investors and help Brazil's beef industry establish more viable operations in the Amazon region, according to TNC.

Marfrig Beef began operating its first cattle slaughter plant in Tucumã, Pará, in March, part of the properties acquired in 2009 from processor Mercosul. The company wants to expand this plant's slaughter capacity from 200 head per day to 1,000 head per day in the second half of this year and will need reliable cattle suppliers from the region for long-term growth.

Much of the beef from Marfrig's Tucumã facility will be sold to Wal-mart stores in Brazil's northeast.