May 10, 2007

Brazil's Perdigao to pour US$227.5 million in 2007

Brazil's meat processing giant Perdigao plans to invest 460 million Brazilian reais ($227.5 million/168.1 million euro) in 2007, excluding possible acquisitions, the company said on May 8.

Perdigao has already allocated 125 million reais (US$61.8 million/45.7 million euro) in the first quarter of 2007 where thirty percent has been invested in the industrial complex in Mineiros, in the central-western Goias state.

According to Perdigao's investor relations director, Wang Wei Chang, the company's investment is due to the continued growth of market demand, stimulated by the increase of the Brazilian citizens' income. Regarding the exports, Chang said the crisis in 2006 has forced global meat producers to reduce their output and are having difficulties to have it raised due to the increased fodder costs. The situation, according to Chang, has opened more opportunities to Brazil and particularly to Perdigao.

Perdigao is seen to increase its sales by 10 percent year-on-year in 2007, with domestic sales rising 7 percent and exports growing 15 percent year-on-year.