September 26, 2005

Brazil's Perdigâo expands into the beef market

Brazil'a Perdigão is expanding into the beef market and plans production of over 60,000 tons of beef products next year, destined mainly for export markets.

The company has signed an industrial processing agreement with Arantes Alimentos Ltda., which will enable it to start operations immediately. These volumes will increase Perdigão's gross sales in around R$ 270 million.

Perdigão's expansion into the market for beef products is justified by the enormous potential of this segment: Brazil is the world's largest beef exporter, its second largest beef producer and has the largest cattle of any country in the world.

On top of this, the market for beef products has enormous synergies with the logistical infrastructure the company has built for distributing its other animal protein products.

In the first half of 2005, the company exported 337.2 thousand tons to 750 overseas clients in over 100 countries.