Monday, January 26, 2015

BRF mira new units and partnerships to grow in Asia

The BRF, global largest exporter of chicken meat, plan to strong expansion in the Asian market in the next few years and mira several business models, which include joint ventures with local companies, acquisitions and until the construction of units, told Reuters a company executive.
"We have the challenge of making Asia what we did to the Middle East", where the company came in 30 years and where the Sadia brand products are widely known, said Marcos Jank, which leaves Sao Paulo in March to lead the expansion in Asia from Office in Singapore.
Recently the BRF closed the creation of a joint venture with the Indofood, in Indonesia, in a project of 200 million dollars of joint investment, with the aim of opening that market.
In November, the company inaugurated its first plant outside of Brazil, a frozen foods plant in Abu Dhabi that produces items such as breaded, burgers and pizzas with Brazilian chicken meat.
Templates like these are among the options that Jank aims to explore the expansion of the BRF in Asia.
"We have already begun with this joint venture with the Indofood, on Indonesia. Let's look at several other opportunities ...Are expanding operations in the sense of trade agreements or even plants, we can be doing in this region, "he said. He did not give details of ongoing negotiations.
The idea is to replicate the model in Asia that supplies the Brazilian market, where the BRF controls since the genetics of arrays of chickens and pigs to distribution to 160 thousand points of sale throughout the country.
"When we see the traditional exports that we had while we were basically Perdigão, Sadia and selling commodities. What we want to do now is to extend the integrated chain in other countries. This can be done with Brazilian raw materials or with local raw material, "he said.
What's at stake is a very promising market, in a region that is home to about half of the world's population.
While the average consumption of chicken in the world is 12 kilos per person per year, and Brazil is 44 pounds in Asia each inhabitant consumes on average just 6.5 pounds of chicken every year, according to the BRF.
To Jank, the 12 most populous countries of Asia, six are closed on pork and chicken from Brazil, by tariff barriers or sanitary.
The Executive, who will be Executive Director of Corporate Affairs in Brazil to assume the Vice President of business development and Corporate Affairs for the Asian region, will have as its mission also negotiate with Governments and entities to open market to Brazilian products.
"China is A country which in principle is open, but the enabling process is very time consuming, very complicated," exemplified.
Countries like China, Indonesia, India, Malaysia and Thailand are cited by the Executive as potential markets for expansion in Asia.
"The potential is mainly in poorer markets, where the middle class is growing," he said.
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