Brazil-based food group Marfrig is to split its beef business into two operational units – one for its domestic market and one for southern parts of South America.

From September, the company will run the beef business through Marfrig Beef Brazil and Marfrig Beef Southern Cone, which will oversee operations in southern Brazilian state Rio Grande so Sul, Argentina, Chile and Uruguay. The second unit will also handle Marfrig Beef’s Pampeano canned food business.

According to market sources, around 60-70% of Marfrig’s beef sales are to retailers, with the rest to foodservice outlets.

Last month, Marfrig announced plans to sell domestic poultry business Seara Brasil to rival JBS.

If the sale of Seara Brasil is approved by Brazilian competition authorities, Marfrig will be offloading its branded business in its domestic market. It would be left with its beef operations in Brazil, as well as its European arm – the UK-based Moy Park – and US meat products manufacturer Keystone Foods.