July 4, 2008

 

Sadia to build new chicken plant in Mato Grosso

   
  

Brazilian food company Sadia SA (SDA) said Thursday (July 3, 2008) it will invest 630 million Brazilian reals (US$393.7 million) in a new chicken processing plant in the state of Mato Grosso.

 

The new 52,000-square-metre greenfield project will also house a feed production plant, a grain warehouse and a chicken incubator. Some BRL230 million (US$142.9 million ) will come from third-party financing and the rest will be funded by Sadia.

 

The chicken processing unit should be operational by the second half of 2010 and is expected to account for an additional BRL780 million (US$484.9 million) in corporate revenue.

 

Sadia said an estimated 60 percent of the facility's chicken meat production would be sold internationally.

 

The plant would have easy feed access as Mato Grosso is one of Brazil's leading grain and soy producers.

 

"We are implementing this year a new and ambitious investment plan that we intend to follow until 2009," Sadia president Gilberto Tomazoni said.

 

Sadia is one of Brazil's largest food companies and chicken exporters.

 

Over the last year, Brazilian food companies have been expanding aggressively at home and abroad.

 

Competitor Perdigao acquired local dairy company Cotoches in April to add to its expanding dairy portfolio.

 

Brazilian meat packer Marfrig acquired chicken company OSI Brazil in June and Pena Brana in March, and acquired the UK's CDB Meats the same month.

 

Mid-sized beef company Independencia Alimentos Ltda. acquired Paraguay beef company Guarani in June.

 

Brazil is the world's leading beef and chicken exporter.