November 7, 2005

 

Brazil's Bertin Group receives US$129 million for meat plant upgrades

 

 

Bertin Group, one of Brazil's largest beef exporters, was approved for a 284.5-million-real (US$129 million) funding package Monday to upgrade 35 meat processing plants in four states.

 

Brazil's National Development Bank (BNDES) will ultimately finance a 582 million real of Bertin upgrades between now and 2007. The investments will be in meat-packing plants located in Mato Grosso do Sul, Goias, Para and Sao Paulo states.

 

Bertin received a 400-million-real loan between 2000 and 2003, used for investments to increase meat-processing productivity.

 

Brazil is currently the world's largest beef exporter.

 

BNDES said in a press statement Monday that the loans will be used for expanding the size of three meat processing units, one in Mato Grosso do Sul, and the others in Goias and Sao Paulo and the modernisation of a unit in Para. Bertin also plans to use the loan to finance the building of a new meat processing plant in Campo Grande, the capital of Mato Grosso do Sul.

 

Beef products make up 70 percent of Bertin's revenue, according to the company. A foot-and-mouth disease outbreak in cattle in southern Mato Grosso do Sul led the company to migrate much of its meat processing away from the state, but the company still remains committed to their investments in Mato Grosso do Sul, Brazil's no. 1 beef producer.

 

Processing plants in the south of Mato Grosso do Sul, where cases of FMD have been confirmed in the past three weeks in the small towns of Eldorado, Novo Mundo and Japora, have been forced to reduce their workload and offer paid leave to employees.

 

Bertin Group is responsible for 22 percent of Brazil's beef exports, BNDES said in a statement. Bertin created 5,700 jobs this year, for a total of 20,600 employees.

 

BNDES loans are based on long-term interest rates, currently at 9.75 percent a year. Brazil's base interest rate is 19 percent a year.