May 5, 2009
Brazilian poultry processors file for bankruptcy
In the month of April, two poultry processors in Sao Paulo, Brazil, filed for bankruptcy protection.
Common factors behind this action taken by AvÃcola Paulista and Rei Frango are difficulty in rolling over debt and obtaining credit for working capital.
This brings the number of poultry processors in the state filing for bankruptcy over the past six months to three, the first of which was Frango Forte filing for bankruptcy in November 2008.
The joint debts of the three are around BRR$300 million (US$140.3 million). On top of this the financial situation of Coperfrango, the largest cooperative in this field in the state, recently announced redundancies and the suspension of slaughters.
Brazilian Poultry Processing Union president Ariel Mendes said a 20-percent drop in production is seen since the credit crisis became worse.
US$1 = BRR2.138 (May 5)
