March 23, 2009
Marfrig sees recovery in Brazilian beef exports
Brazilian meat company Marfrig expects recovery in Brazil's beef exports this year, as sales have improved in March despite declines in January and February shipments, according to investor relations director Ricardo Florence.
The last quarter of 2008 was blighted by the world economic crisis with a lack of credit to key importers such as Russia, Marfrig said, adding that only 47,800 tonnes of fresh beef were exported to Russia during the quarter, down 64 percent from 133,000 tonnes in the third quarter.
But the situation is improving, and Marfrig expects the EU to allow more than 1,000 new ranches this year to sell fresh beef to the bloc, while Russia is increasing orders on declining stocks and Chile is also allowing imports from some Brazilian states.
Florence said Marfrig's export volumes in the first quarter of 2009 should be the lowest of the year but will improve throughout 2009 and meet its full-year guidance target of exports.
However, Florence warned that the international climate will remain challenging. For example, Russia, Brazil's largest beef importer, will import 50-percent less beef from Marfrig in 2009 compared to the previous year.
Marfrig said it was too early to discuss the acquisition of distressed assets from other meat companies in the market, as it wants to focus on its own consolidation and assets and ensure their performances.
The company intends to open a new facility in Brasilia in the second quarter of 2009 to focus on preparing cooked chicken products to export to countries such as the UK. Marfrig will also invest in poultry plants in Brazil's Sao Paulo and Parana states for modernisation.
Marfrig slaughtered 719,727 heads of cattle in the fourth quarter, down 19.7 percent from a year ago.
The company lost BRL74.2 million in the fourth quarter due to the depreciation of the Brazilian real against the US dollar, which increased the costs of its debts in the period.
Marfrig's revenue rose to BRL6.7 billion in 2008 from BRL3.7 billion in the previous year.
US$1 = BRL2.26450 (Mar 23)
