October 11, 2005

Brazilian meat giant Perdigo to expand into beef market

Brazilian meat giant Perdigo planned to expand into the beef market and produce more than 60,000 tonnes of beef products next year, reports said. The products would be mostly exported.

Perdigo has signed an industrial processing agreement with Arantes Alimentos Ltda., which would allow immediate commencement of operations. The production was expected to raise Perdigo's gross sales by about 270 million real.

Under the agreement, Arantes Alimentos Ltda. would provide Perdigo the processing services at its Cachoeira Alta plant in Brazil, as it was close to Perdigo's Rio Verde industrial facility and to the region's abundant availability of cattle.

The company sought to take advantage of Brazil's position as one of the world's largest beef exporters, and achieve greater synergies with the logistical infrastructure it has built for distributing its other animal protein products.

Perdigo had already acquired expertise in distribution and sale of poultry meat, pork and processed foods, placing it in an ideal position to compete in the beef product market.

It could also leverage on its existing distribution channels especially in foreign markets, as well as on quality and logistical efficiency of its current products.

In the first half of 2005, the company exported 337,200 tonnes of products to 750 foreign clients in over 100 countries.