October 15, 2008

 

Government minister returns to head Sadia

 
 

A top government minister in Brazil has returned to head Sadia, one of the biggest meat producer in the US after the company's chairman and vice-chairman resigned in the wake of the company's US$345 million-loss speculating on currencies. 

 

Luiz Furlan led Sadia for a decade until he was called to be President Lula's minister of development, industry and foreign commerce, a post he held until 2007.

 

Sadia's loss in recent weeks meant it had to resort to short-term loans to guarantee the company's cash flow. The real has devalued more than 22 percent since August, resulting in large losses for exporting companies.

                                                                                                                           

President Lula was reportedly furious with Sadia, and other Brazilian companies for speculating against the Brazilian currency.

 

Furlan said Sadia might seek legal recourse against those involved in the contracts.