InVivo will invest $ 100 million in the country by 2016

The French animal nutrition company InVivo, formerly known as Evialis, will invest $ 100 million in Brazil over the next three years, said to the President of the company in Brazil, Nilton Perez. Used to grow in Brazil with acquisitions, the company, which is one of the largest in the animal nutrition sector in the world, you want to adopt a strategy of organic growth, including the construction of factories. "The projects are greenfield, in principle," said Perez.
With ten feed mills installed in the country, the InVivo intends to raise its production capacity by 20% over the next three years, passing from the current annual production of 1 million tons to about 1.2 million tons until June 2016. The contributions, Perez, will begin in 2013/14 ano-fiscal, which runs from July to June.
The details of the investment, as the regions and markets that will benefit, are not yet defined, according to the Executive. Perez signaled, however, that one of the goals of InVivo is to expand operations in the Midwest, North and Northeast.
The trend, he said, is that investments to concentrate on expanding the production of feed for domestic animals and for the production of fish in captivity, the call. With this, the InVivo strengthens its focus on income growth of the Brazilian population, in a move that would expand the demand for products for pets.
In the case of aquaculture, the expectation of the company reflects the optimism with the growth-above two digits-verified sales of feedingstuffs for fish in recent years. In a report published at the beginning of the year, the Rabobank said that aquaculture is the "next frontier" of the country's animal protein market and that Brazil meets the ideal conditions to meet the growing demand for fish in the next few years. The good prospect for the sector causes the InVivo still consider acquisitions. "Is not cocked. But if we were to acquire something, it would be in aquaculture, "said Perez.
The investments in production capacity of feed for pets and for aquaculture are also support the estimates of the National Union of the Animal feed Industry (Sindirações). The two segments are the ones who must grow, behind only the sales of mineral salt for cattle. For this year, the entity provides that sales of feed for aquaculture will rise 13.8% to 740 thousand tons. Already sales of dog and cat feed should increase 5%, to 2.37 million tons.
Despite the expected growth to sales of mineral salt, Perez drops raise its production capacity for cattle. "We work with mineral supplement overcapacity," he said, estimating that the InVivo operate as a 40% average idle in the production of feed for cattle.
But idleness is not the only reason. Enlarge production capacity for cattle would raise the company's dependence on a segment from ruminants-who has concentrated about 45% of its sales. In ano-fiscal 2012/13, the billing of InVivo in Brazil was a little over $ 700 million. For the next cycle, the 2013/14, Perez estimates that the company has a turnover of R $ 770 million.
The Executive said that investment in Brazil also reflect a reduction in France's participation in the global revenue of the company, which is controlled by a group of French cooperatives. Since 2004, the share of the European country in the recipe of InVivo fell from 75% to 40%. The Brazil is the third most important country for the company, behind Mexico and France. In 2012/13, ano-fiscal the InVivo had global revenues of about $ 1.8 billion in animal nutrition.