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Marfrig Invests in its Integrated Chicken Producers

by 5m Editor
28 July 2009, at 11:07am

BRAZIL - Marfrig has signed a 50 million reais (BRR) agreement with Banco do Brasil to benefit integrated chicken producers.

Marfrig Alimentos S.A., has informed its shareholders and the market in general that it has entered into the BB Convir agreement with Banco do Brasil for a total of BRR 50 million to open credit lines for its integrated chicken breeders in the states of Rio Grande do Sul, Santa Catarina, Paraná, São Paulo and Minas Gerais.

The objective is to provide conditions for partner breeders to invest in existing facilities and help fund the construction of 744 aviaries by 2011. In light of the existing financing potential, the agreement amount may eventually be increased to up to BRR 250 million. In addition, this agreement is expected to benefit over 1,000 rural families or properties, plus transport chains, providers of technical services and inputs (veterinary and nutritional products) and other links in the production chain.

Marcos Antonio Molina dos Santos, the CEO of the Marfrig Group, points out three direct benefits of the BB Convir agreement for integrated chicken breeders: continuous income generation, job creation and diversification options for breeders.

"The Marfrig Group is present in more than 150 municipalities in the South and Southeast regions and this will be an important tool to boost the business of the company and its partners by strengthening the entire chicken production chain," he said.

Both existing and new integrated breeders can apply for the credit line. They will be evaluated by a technical team that will determine if they are appropriately located and other requirements, including environmental legislation.

"Logistics is an extremely important factor in chicken breeding and hence the proximity of the aviaries to our units is a crucial factor to be considered," explained Mayr Bonassi, CEO of the Chicken, Pork and Industrialized Products Division of the Marfrig Group.

Marfrig Brazil Chicken Division has operations in the states of São Paulo, Minas Gerais, Paraná, Santa Catarina and Rio Grande do Sul in July 2009, the Division had a daily slaughtering capacity of 1,080,000 chickens/day, distributed in slaughtering and processing plants located in Caxias do Sul (RS), Roca Sales (RS), Ipumirim (SC), Lapa (PR), Braslo (SP), Jaguariúna (SP), São José do Rio Preto (SP), Amparo (SP), Uberaba (MG) and Passos (MG). Currently, there are 2,000 direct integrated chicken breeders.