Brazilian meat companies struggle on falling meat exports

The values of meat companies in Brazil are dropping on the stock market as exports continue to fall.

According to media reports, the share price of Perdigao SA, Brazil's biggest food company, fell on Tuesday (Mar 3) to its lowest in a year in Sao Paulo trading after the country's poultry exports dropped in February, slipping 4.3 percent to BRR26.50.

Brazil's Foreign Trade Secretariat said the country's poultry exports fell 13 percent from the previous month to US$294 million, with volumes dropping 5.3 percent to 231,500 tonnes.

Sadia SA, Brazil's second-biggest food company, gained 1.1 percent to BRR2.75, while JBS SA, the world's biggest beef producer, also gained 1.1 percent to BRR4.55.

According to SECEX, the price of beef which dropped 5.4 percent from January, maintained its downward trend, although at a lower intensity when compared to previous months.

The drop in beef prices and exports forced closely held Brazilian beef processor, Independencia SA, to seek bankruptcy protection from creditors in the US late last week.

Independencia chief financial officer Tobias Bremer said Brazilian beef exports have dropped about 34 percent by volume since September 30, 2008.

Marfrig Frigorificos e Comercio de Alimentos SA, Brazil's second-biggest beef producer, fell 1.3 percent to BRR6.70, while Minerva SA, gained 0.6 percent to BRR1.72.

US$1 = BRR2.36 (Mar 5)