Brazilian meat processor Marfrig has shaken up its business structure to reduce costs and increase operating margins.
A key part of Marfrig’s changes is a revamp of its beef division. James Cruden has been announced as the CEO of the company’s global beef operations and will now oversee operations in Argentina and Uruguay. Marfrig said the move had been made to reduce the number of direct reports to group CEO and chairman Marcos Antonio Molina dos Santos.
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The company has also set up a new department called Marfrig Shared Services, located in Santa Catarina, to identify efficiencies in administrative services in each business division.
Meanwhile, the headquarters of Marfrig’s Seara division will be consolidated from two offices into a single site in São Paulo, effective from Monday (17 October).
Marfrig has also announced a new 800,000 sq m distribution centre in São Paulo state, which is expected to open in November. It aims to “encompass” the services able to be shared in all of the group’s operations abroad, the including US and Europe, by the end of 2012.
In August, Marfrig posted a net loss in the second quarter on the back of a weak US dollar and high grain and livestock prices. Speaking at the time, Molina dos Santos said that “financial and operational discipline” would be required for growth.
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By GlobalData
