Brazilian meat processor Marfrig Global Foods will invest US$25m to increase capacity at two plants in Argentina.

Marfrig holds a 10% market share in Argentina and aims to supply 1.25 million tons of meat in 2023, compared to expected output of 900,000 tons for this year. To get there, the company plans to raise capacity by 50%, split across its facilities in San Luis, the capital of the province with the same name in the Cuyo region, and at San Jorge, Santa Fe, in southern Patagonia, a spokesperson said, confirming details that first appeared in a local news report in the country.

The production increases will be incorporated during the rest of this year and into 2021. The expansion at the San Luis site has been delayed by the pandemic with new equipment ready to be installed, while the extra capacity at the San Jorge factory will be implemented during the second half of next year.  

Gustavo Kahl, the CEO of Marfrig’s Argentina division, said the Brazilian business is seeking a larger slice of Argentina’s meat market. “Argentina is in the process of growth and we do not want to be left out,” he added. “In this business we still have a lot of room to grow.”

Marfrig built its presence in Argentina in October, acquiring Campo del Tesor, a manufacturer of beef burgers for the foodservice channel with an annual production capacity of around 15,000 tons.

The Brazilian firm has also joined the plant-based ranks. In May, it formed a joint venture with US agri-food business Archer Daniels Midlands (ADM) called PlantPlus Foods to sell meat-free products across the retail and foodservice channels in South and North America, having launched the alternative Revolution Burger brand in 2019. 

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