May 19, 2021
Shares of major Brazilian meatpackers fall following Argentina's beef export ban
Major Brazilian meatpackers Marfrig and Minerva saw their shares fall following Argentina's 30-day beef export ban, which affected their operations in that country, Reuters reported.
Rodrigo Brolo, head of agribusiness advisory at Criteria Investimentos, said Minerva is most affected by the ban as their Argentina operations account for 10% of worldwide sales.
Brolo said Minerva cannot shift their export base to Brazil as the cattle and cuts sold from their Argentine operations are different.
Argentina's farm groups said they will halt livestock trading to protest the 30-day ban, which was imposed to rein in Argentina's soaring inflation.
Alcides Torres, director at consultancy Scot, said Brazil could benefit from the ban as importers like China seek alternative beef sources.
Lygia Pimentel, a director at consultancy Agrifatto, said if demand for Brazilian beef increases, it could add more pressure on cattle prices.
Marfig's shares ended 1% lower after the company said the ban will affect 1.3% of its overall net revenue. Marfig is the biggest supplier of beef products in Argentina, where it owns five plants. It sells beef under the Paty hamburger brand.
Minerva's shares closed 3.5% lower, one of the biggest losers on the São Paulo stock exchange. Minerva owns five plants and one distribution center in Argentina. Minerva said it will continue serving clients in export markets through Uruguay, Paraguay, Brazil, and Colombia. It emphasised its strong presence in Argentina, where it owns the Swift brand.