The Brazilian meat giant Marfrigowner in Argentina of emblematic brands such as hamburgers Patty and the sausages Vieníssimabought a processed food factory in China. As announced, this plant will be partially supplied with Argentine meatas well as from Brazil and Uruguay.
The operation, which was carried out through its controlled BRF, involved a disbursement of US$80 millionof which US$43 million will be used to cover the cost of the facilities and the rest will be used to make adjustments to the plant and install two hamburger production lines.
According to a report from the Ministry of Agriculture, Livestock and Fisheries, in the first nine months of 2024, Argentina exported 699,987 tons of beef, which represents a record for the last 57 years.
The same study highlights that China “continues to be a fundamental destination” for Argentine beef exports, and in the first six months of 2024, 75.7% of exports went to that countryaccording to official data.
It also details that in August 2024 the average price of boneless meat sales to China was US$3,200 per ton.
Marfrig’s operation in Argentina includes the production and sale of foods derived from beef and processed in the country. It has 5 production plants, with a capacity of more than 40,000 tons of hamburgers per year and more than 30,000 of other products.
“This acquisition represents a significant milestone for BRF and Marfrig. By integrating this plant into our operations, we not only expanded our production capacity in that market, but also It is a greater opportunity to export raw materials from our units in Brazil, Argentina and Uruguay,” expressed Gustavo Kahl, CEO of Marfrig Argentina.
BRF is also one of the largest food companies in the world. It has brands such as Sadia, Perdigão and Qualy in its portfolio. It was present in the Argentine market until 2018, when it sold the Quickfood operation, the manufacturer of Paty, to Marfrig.
With this transaction Marfrig will have an industrial operation in the Chinese market for the first time, where already sells animal proteins. The forecast is that the new unit will be operating under the management of BRF in the first quarter of next year.
Built in 2013, the plant has two food processing lines, with a current capacity of approximately 30,000 tons per year and potential to expand.
The plant is located in Henan, a province in the Yellow River Valley in central China, known as the birthplace of Chinese civilization. It is the third most populated area in China, with around 100 million inhabitants.
According to BRF estimates, this operation will generate around 850 new jobs and an additional capacity of approximately 30,000 tons per year, doubling the plant’s capacity to reach 60 thousand tons per year.
Marfrig seeks to diversify its operations in China and the Middle East
“The acquisition of this plant is aligned with the strategy of Expand the company’s global presence by diversifying its operations and strengthening the competitiveness of BRF, along with the increase in the offer of value-added products,” reported the Brazilian company.
The company’s expectation is that this investment represents an opportunity to expand the customer base and boost the company’s sales.
Furthermore, the creation of an export “hub” in this new location opens opportunities for serve international markets more efficiently, optimizing logistics and facilitating distribution to other countries, he added.
BRF’s commercial platform, which includes clients and commercial offices located at different strategic points, is considered an important differential in this process.
BRF brands, with Sadia as a badgeand the company’s products will be present in various channels in the Chinese market, including retail and food service, including large global chains.
BRF is present in more than 120 countries. Owner of brands such as Sadia, Perdigão and Qualy, the company bases its actions on the fundamental commitments of safety, quality and integrity.
The company bases its strategy on a long-term vision and seeks to generate value for almost 100,000 employees around the world, more than 415,000 clients and approximately 9,500 producers integrated in Brazil.
The possibility of further exploring the “food service” segment is a significant opportunity, especially in a growing market like China, which is one of the most relevant, along with the Middle East and North Africa.
The region is considered a strategic access point to a market with great potential. The raw material used in the plant may originate from both China and the operations of BRF and Marfrig, which have multi-protein export platforms in South America. with plants enabled in Brazil, Argentina and Uruguay for the shipment of supplies, guaranteeing continuous supply to supply the new plant.
The Brazilian holding company gives Henan fundamental relevance in its expansion strategy in the East. It assigns it a key role as a strategic logistics axis. He assures that the Chinese province is essential for the transportation of goods, since it connects the northern and southern regions of the country through extensive infrastructure.
In this sense, it details that Henan has 266,000 kilometers of routes, of which 7,000 kilometers are highways, in addition to 6,500 kilometers of railways and 1,400 kilometers of railways for high-speed trains. It also has two international airports that reinforce the province’s role as an important logistics center for Marfrig’s plans.
Source: Ambito
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