Bloomberg News

Marfrig to Resume Beef Output at Factories in Second Quarter

May 15, 2012

Marfrig Alimentos SA (MRFG3), Latin America’s third-largest beef producer, will resume production in the second quarter at three of nine plants, where output had been suspended, after beef demand climbed, said the company’s investor relations director, Ricardo Florence.

Increased demand for food products in the domestic market helped the company post a first-quarter profit of 34.5 million reais ($17.3 million), Florence said today in a telephone interview from Sao Paulo. Marfrig late yesterday posted profit that rose 47 percent and beat analysts’ estimates.

Florence said that the company may sell more assets after deals to sell logistics units to JSL SA (JSLG3) and distribution units in the U.S., Europe and Asia to Martin-Brower Co. The sale of the distribution center for McDonald’s Corp. concluded in February.

“When there is something that justifies it, we will send a market statement,” he said, declining to identify any possible deal.

The company benefits from the current dollar level, said Florence.

“Our cash flow in dollars is evened out, but this currency level helps making out exports more competitive,” he said.

Brazil’s real traded at 2.0054 per dollar on 4:20 p.m., as the currency slid 6.79 percent in 2012.

He also said that the mad cow disease case in the U.S. may potentially help the company’s exports.

“New markets may open up to us,” Florence said.

BRF - Brasil Foods SA and JBS SA are Latin America’s largest meat producers by market value.

To contact the reporter on this story: Mario Sergio Lima in Brasilia Newsroom at mlima11@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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