MercoPress. South Atlantic News Agency

Brazil beef industry further expands into Argentina

Brazil's third-largest beef exporter, Marfrig Frigorificos e Comercio de Alimentos SA through its Argentine branch Breeders & Packers SA has acquired Argentina's Mirab SA for 36 million US dollars said the company in a statement.

Mirab, Argentina's leading producer of meat-based snacks, including beef jerky, exports its products to the U.S., Japan and the U.K. Margrif thus becomes South America's main producer of beef jerky. Beef jerky is distributed in the US through Mirab, based in Michigan. Some of the brand names include Pecos Bill's, Farmer's Market and Rancher's Brand. The acquisition of Mirab is part of Marfrig strategy to strengthen its hold on the meat snack added value market. Margrif has several meatpacking plants in Brazil, Uruguay and Argentina. In Argentina Marfrig not only purchased several meatpacking plants but also a sheep abattoir since the company has become Brazil's main importer of lamb to supply five star hotels and restaurants. In Uruguay, Marfrig owns almost 50% of the country's abattoir capacity after having acquired the plants of Colonia, Tacuarembo, San Jose and Salto. The Brazilian company has been advancing its interests in Argentina in spite of the fact that the current administration, as the previous one, has extended limits on beef exports to help ensure domestic beef supplies at low prices. The latest ruling extends until March 31 and the Argentine government said it will continue to limit exports to 40.000 metric tons of beef on the bone a month, effective Tuesday, according to an Economy Ministry resolution published in the Official Bulletin last Monday. In related news Brazil's main business newspaper reported that this year should be favorable for acquisition of meatpacking plants at lower prices than in 2007. The cattle-farming industry is expected to rake in less profit in 2008, as a decreased supply of slaughter steer is pushing up prices and cutting meatpackers' profit margins, according to the report.