November 22, 2007

Brazilian beef firm Minerva to increase investments by 66 percent

Brazilian beef company Minerva aims to increase investments by as much as 66 percent to BRL155 million (US$87.6 million) next year through production expansion and acquisitions, the company said Wednesday (November 21).

Minerva's chief executive officer, Fernando Galletti de Queiroz, said aside from Brazil, the company is also targeting markets in Uruguay and Paraguay.

Brazil is the world's leading beef exporter and Minerva is one of the country's top beef producers.

Queiroz said Minerva should increase its beef slaughter by 57 percent in the second quarter of 2008 to around 7,850 heads per day.

Queiroz added that local beef prices are expected to fall by as much as 10 percent in 2008 from highs of around BRL71.65 per 15-kilogramme in some regions of Sao Paulo on Wednesday. Lower raw material costs will improve profit margins.

Minerva distributes beef and other products, including food from Sadia and General Mills, to 15,000 clients nationwide. The company mostly distributes to small and mid-sized neighborhood retailers.

The company also aims to increase its fresh beef shipments to Russia despite the existing ban it placed on some Brazilian states.

Queiroz said the cornering a significant size of Russian market is a challenge that the company wants to overcome.