Poultry Giant Looks to Get More Out of ‘Worst Ever’ Pork Crisis
· BRF working ‘tirelessly’ to have more plants cleared to export
· Company expects price increases to accelerate next year
By Tatiana Freitas, Bloomberg
November 8, 2019
Brazilian chicken processor BRF SA is striving to tap more demand from China where the spread of African swine fever is creating a massive protein gap.
The Sao Paulo-based company has been working “tirelessly” along with Brazilian authorities to have more plants cleared to export to China, it said in an earnings statement Friday. In September, BRF had two facilities approved, bringing the number of China-approved plants to nine.
Ripples from the pig-killing disease are already benefiting BRF as China almost doubled purchases in the third quarter and Asian nations built up stockpiles amid fears of global shortages. Price increases are expected to accelerate next year as sow slaughtering bottoms out, exacerbating the meat supply gap.
“It’s the worst-ever crisis seen in the world’s swine market,” Chief Executive Officer Lorival Luz said.
Earnings growth and the bullish export outlook are bolstering BRF’s ability to bring down debt. Still...
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