BRF will again raise rates to tackle high cost of maize

The BRF plans to increase its prices by about 7% in May to help deal with increased costs and a market that should keep challenging until mid-year, said the Chief Executive of manufacturer of processed foods and exporter of chicken meat, Pedro would do.
In a teleconference with analysts, Faria claimed the 10% adjustment in the prices of the company earlier this year was not enough to offset cost pressures generated by the high prices of maize, the main item in the diet of the animals slaughtered by the company.
The BRF released the night before net profit of 39 million dollars for the first quarter, a fall of 91% on the result obtained in the same period last year.
Corn costs were about 60% higher than a year earlier in the first quarter because of scarcity of grain, executives have said.
The Chairman of the Board of BRF, Abilio Diniz, stated that the overproduction of chicken in Brazil, combined with the rising costs and adverse exchange rates have hit the company''s exports resulted in one of the most challenging quarters ever experienced by the company.
Despite the challenges, Do said the BRF still waiting to invest 2 billion reais in 2016. Although there are concerns that the drought could affect the world corn harvest of Brazil, you should come to the market in may or June, the BRF evaluates local grain prices will fall.
"There may be a second harvest of corn a little better or a little worse, but the prices will fall," said Do.
The BRF has imported maize from Argentina and Paraguay, but told the Ap earlier this week that do not plan to use a new quota to buy corn without tariffs for countries outside of the Mercosur.
At 12:44, the actions of the BRF rose 49.10, 0,2% real, while the Ibovespa showed 0,9% devaluation.