US agribusiness giant Cargill remains committed to growing its meat businesses around the world, the company has told just-food, despite the sale of its pork and poultry unit in Brazil.
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In a deal announced yesterday (15 September), Cargill sold its Seara Alimentos business in Brazil to local food group Marfrig for US$706.2m.
The sale comes amid a wave of consolidation in the Brazilian meat industry and amid talk of similar moves worldwide.
In May, meat processors Sadia and Perdigao agreed to join forces to form Brasil Foods. A month later, Marfrig struck a deal to buy the Brazilian turkey operations of France’s Groupe Doux.
JBS, Brazil’s largest meat processor, which has expanded its international businesses in recent years, has also been linked to beleaguered US poultry group Pilgrim’s Pride.
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By GlobalDataFor its part, Cargill said Marfrig had approached the company with a view to buying Seara Alimentos and insisted that the group would look at expanding its meat and egg operations remaining outside Brazil.
“We were in the midst of a thorough strategy review of Seara’s business plan when Marfrig expressed a strong interest in acquiring Seara,” Afonso Champi, Cargill’s corporate affairs manager in Brazil, told just-food.
“After reviewing Marfrig’s proposal and the changing dynamics of the industry in Brazil, we concluded that a combination of Marfrig and Seara made compelling business sense now and in the future.”
Champi added: “The decision to sell Seara does not change Cargill’s commitment to the continued growth of its beef, pork, poultry and egg businesses around the world, and we will continue to explore opportunities for further investment in these industries globally.”
Marfrig’s management is due to address investors about the rationale behind the Seara buy later today.
