March 31, 2009

Brazil's Sadia considers leaving beef business

Brazilian food company Sadia (SDA) is considering selling its beef business, the company's chief executive told equity analysts Monday (March 30).


"We can sell our beef business, which is not part of our core competency," said Gilberto Tomazoni, Sadia's CEO.


"We're already talking with companies interested in these assets and could have some news in some months," he said.


Brazil is the world's leading beef and chicken exporter. Sadia is better known as a chicken and pork company. Beef made up just 3 percent of the company's 2008 revenue of 12.2 billion Brazilian reals, or US$5.23 billion, the company said.


Sadia is looking to sell local and international assets to pay down debts and recover losses incurred from dollar futures contracts.


One of the sites includes a chicken meat packing facility it owns in northeast Kaliningrad, Russia, with Moscow-based agribusiness company Miratorg. Sadia owns 60 percent of the joint venture, known as Concordia Ltd.