May 16, 2006

 

Organic beef from Brazil finds itself a growing niche market

 

 

With fears of mad cow and foot-and-mouth disease pervading the consumer market, producers are finding the advantages of organic beef more attractive than ever.

 

Nowhere is this more evident than in Brazil, the world's top beef exporter.

 

Friboi, the largest slaughterhouse in Brazil with annual revenues of about US$2 billion, started producing and exporting the line Organic Beef Friboi in 2004.

 

The line includes 15 options of vacuum-packed raw cuts such as striploin, tenderloin, round steak, sirloin, shank and ribs, said Fl¡§¢vio Saldanha, marketing manager at Friboi.

 

Last year, the company shipped 24 tonnes of products a month, mainly to United Arab Emirates, France, Holland and Germany. This year, the company expects to double that to 50 tonnes.

 

Animals are bred in pastures in the state of Mato Grosso without the use of pesticides and chemical fertilisers and are treated only with homeopathic medication.

 

The company currently slaughters 1,000 heads of organic cattle a month and plans to double the figure by the end of 2006.

 

On the domestic market, Friboi has launched a unique strategy to promote its brand of organic meats.

 

The company has produced its own organic hamburger and struck up a partnership with a fast-food chain to be its exclusive supplier of organic hamburgers.

 

The company has a near monopoly hold over the organic beef sector and sells around 50 tonnes of cuts and industrialized products a month to large retail chains like Carrefour.

 

With contracts from mega retailers like Wal Mart this year, the company expects to double the volume to 100 tonnes a month.

 

Organic products are gaining popularity in Brazil and the only constraining factor is the availability of organic cattle, said Flavio Saldanha.

 

Established in the state of Goi¡§¢s, in 1953, Friboi group has businesses in foods (raw meats, industrialized products and canned products), farming (farms for cattle raising) and transport.

 

The company is among the four largest slaughterhouses in the world, slaughtering and processing 12,000 heads of cattle a day.