Tuesday, June 13, 2017

Minerva reopens fridge in MT to gain ground amid the crisis of the JBS

The information of the brothers Wesley and Joesley Batista-JBS/Friboi owners – controlled by holding company J&F, are leading the Group''s main competitors in Brazil to consider the reopening of units in the Midwest, especially in Mato Grosso, where the largest slaughter of cattle in the country. The State found that the Minerva, Brazil''s third-largest refrigerator, will reactivate the unit of Mirassol D''oeste, in MT, which was standing from 2015. Marfrig, according to sources, also studying subsequent reopenings.
Today, executives of the Minerva, which last week announced the purchase of South America of JBS – will meet with authorities of the State of Mato Grosso to inform the reactivation plans. The unit will need some repairs and signings, but should operate in the coming weeks. Dona also slaughter units in the State, Marfrig, will assess in July, will open the operation of Nova Xavantina, who was part of a bankruptcy and is closed.
JBS, Marfrig and Minerva took part in recent years of a movement of concentration in the industry. The JBS and Marfrig had support from BNDES to make acquisitions in and outside Brazil. The Minerva sat out of this boom, but also made in acquisitions in the country and began to look at assets in South America.
At the end of 2015, the Salic, of Saudi Arabia, bought 20% of the capital of the refrigerator, allowing greater Brazilian musculature to the company to advance in the Country. The Group announced last year the purchase of a competitor, the Stresses, but the operation did not go ahead.
Crisis. The crisis in the meat sector information of the brothers Baptiste has left several ranchers, who have closed contracts for delivery of livestock for JBS, worried. The country''s largest refrigerator, JBS is responsible for 20% of the slaughtering of cattle in Brazil, according to Pedro de Camargo Neto cattleman, Vice President of the Brazilian Rural society (SRB). "Only in Mato Grosso, about 50% of slaughter of cattle," said Camargo Neto.
The turbulence does not affect only the ranchers that deliver cattle just to the JBS. Since the information, prices of arroba do boi have fallen sharply.
According to Luciano Vacari, Executive Director of the Association of Breeders of Mato Grosso (Acrimat), cattle prices retreated from the at sign of the ox $130 R for up to £ $115 in the State of Mato Grosso. "Imagine the situation of a cattle Producer prepares for 24 to 30 months before to fatten cattle to sell to the fridge. All of a sudden, there''s this situation, "said Vacari. The change of policy of the JBS not to pay more in sight also affected pastoralists. "I stopped selling to the group," said the rancher Murilo Abrahão.
According to him, refrigerators competitors can''t buy the entire cattle ranchers no longer send to JBS, but many are looking at opportunities in the State of Mato Grosso because of the crisis. "There is no space for manoeuvre refrigerators competitors take all the vacuum left by the JBS in this crisis, but competitors are moving in this direction," he said.
Other side. In a statement, JBS reported that standardized the process of buying cattle in Brazil, with payment within 30 days, as has happened in 97% of the squares where played. "All units of the company follow operating normally," said the company.
Wanted, spokesmen of Marfrig and Minerva were found yesterday not to comment on reactivation of unit in Mato Grosso.
O Estado de S. Paulo - 13/06/2017
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