Latest news with #BRFSA
Reuters
21-05-2025
- Business
- Reuters
In food inflation-hit Brazil, bird flu may offer some relief
BRASILIA, May 20 (Reuters) - Poultry trade bans triggered by a bird flu outbreak in Brazil may weigh on domestic chicken prices, offering some relief - if even short-lived - from the food inflation that has undermined the government's popularity, analysts said. Brazil, the world's largest poultry exporter, ships about a third of its chicken meat abroad, industry group ABPA said. And Rio Grande do Sul, where the first outbreak was identified, accounted for about 12% of chickens slaughtered last year, according to government data. The World Organisation for Animal Health on Wednesday encouraged the use of zoning, a method that focuses disease controls on affected regions rather than an entire country, to contain the disease's spread in Brazil while maintaining trade. But with dozens of countries suspending imports of all Brazilian chicken or shipments from Rio Grande do Sul, exporters are scrambling to redirect shipments. Major poultry producers such as BRF SA ( opens new tab and JBS SA ( opens new tab are likely to face short-term oversupply issues, analysts at brokerage XP told clients. Some of Brazil's exports will find new foreign buyers, but the domestic market is likely to absorb more supply, said Jose Carlos Hausknecht, a partner at consultancy MB Agro. The glut could depress prices depending on how long export restrictions last. "It should be a small and short-lived effect," he said. "Then things go back to normal." Agriculture Minister Carlos Favaro, who first highlighted the outlook for lower domestic trade prices as trade bans came into effect, has since walked back the significance of that price impact. Food inflation has haunted the government of President Luiz Inacio Lula da Silva, hurting his chances of re-election next year, as consumer prices rose 5.5% in the 12 months through April. Food prices, the heaviest component in the inflation basket, climbed 7.8% during the period, with poultry and egg prices surging 12.3%, according to statistics agency IBGE. Andre Braz, who tracks prices at think tank FGV Ibre, said it is still too early to forecast inflation relief, as poultry firms are also likely to reduce output if domestic prices fall below production costs. And any disinflationary impact would likely be marginal, said Adenauer Rockenmeyer, an economist and coordinator of the Agribusiness Forum at Sao Paulo's regional economics council. "And if this outbreak is not contained and spreads to other farms, it could lead to mass culling, affecting not only chicken but also egg supplies," he warned, which could eventually increase inflationary pressures.
Reuters
20-05-2025
- Business
- Reuters
Brazil chicken exporters brace for cargo rejections amid bird flu outbreak
SAO PAULO, May 20 (Reuters) - Countries, including China, will not accept chicken consignments in transit from Brazil following confirmation of the country's first bird flu outbreak, Brazilian meat lobby ABPA, which represents large food processors, said on Tuesday. In an interview, ABPA president Ricardo Santin told Reuters the rejection of cargoes may vary according to the date of shipment before outbreak's confirmation, ranging from 14 to 28 days at the discretion of the destination countries' official veterinary services. The situation puts meat processors including BRF SA ( opens new tab and JBS SA ( opens new tab in a tight spot, as they deal with additional logistics costs and uncertainty related to the extent of ongoing trade embargos triggered by the health emergency. Brazil accounts for 39% of the global chicken trade, Santin said, citing fresh trade data. The easing of restrictions for cargos in transit is a possibility, Santin said, particularly if the cargo comes from a region faraway from the outbreak, which was in Rio Grande do Sul state. "But that will require negotiations," Santin said. Mexico and Chile are among countries which would also reject cargoes under existing health protocols related to bird flu outbreaks, he added. It is not possible to calculate losses stemming from export restrictions in force after confirmation of the first bird flu outbreak on a Brazilian commercial chicken farm, Santin said. That is because the scope and duration of trade bans may vary according to health protocols and negotiations with importing nations, Santin said. will Some health protocols foresee regional or even local export bans, while others call for a nationwide suspensions. Under existing protocols, Brazil stopped issuance of health certificates nationwide for cargoes destined to China, European Union and South Africa. However, other major importers like Japan, the United Arab Emirates and Saudi Arabia are less strict and enforce regional bans under the existing protocols. Santin said it is up to the exporting companies to deal with returned cargoes, adding they also have the possibility of redirecting some consignments.
Yahoo
19-05-2025
- Business
- Yahoo
BRF SA (BRFS) Q1 2025 Earnings Call Highlights: Record Profits and Strategic Growth Amid Challenges
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BRF SA (NYSE:BRFS) reported a profit of 1.2 billion reais, doubling the profit from the same period last year. Net revenue increased by 16% to 15.5 billion reais compared to the first quarter of 2024. The company achieved a record first-quarter EBITDA of 2.8 billion reais, marking a 30% increase from the previous year. BRF SA (NYSE:BRFS) reached the lowest leverage in its history at 0.54 times EBITDA. The BRF Plus program delivered 305 million reais in efficiency gains, contributing to continuous improvement across operations. The avian flu outbreak led to temporary market closures, including China, impacting export dynamics. There is uncertainty regarding the regionalization agreements and their effectiveness in mitigating the impact of avian flu on exports. The company faces challenges in maintaining stable pricing and demand dynamics amid fluctuating market conditions. Despite growth, there is a need for further investment to enhance capacity and meet increasing demand. The company is still working on improving efficiency and sees room for further enhancements in logistics and service levels. Warning! GuruFocus has detected 3 Warning Signs with BRFS. Q: Could you elaborate on the impact of avian flu on BRF's operations and the measures in place to mitigate risks, especially concerning large markets like China? A: (Miguel Guilart, CEO) The Ministry of Agriculture has implemented regionalization protocols for avian flu, which initially led to temporary market closures, such as in China. However, many countries have regionalization agreements that limit the impact to specific areas. BRF has contingency plans, including alternative markets and strategic inventories, to manage such situations. We are confident in Brazil's strong biosafety reputation and expect to navigate these challenges effectively. Q: What are BRF's growth strategies, both organic and inorganic, moving forward? A: (Fabio Mariano, CFO) BRF is focused on volume growth, with a 16% revenue increase this quarter, driven by better utilization of industrial assets. We have ongoing investments to expand capacity, aiming for an additional 3-5% growth as these projects mature. Inorganically, strategic acquisitions, like the recent ones in China and Saudi Arabia, align with our goal of adding value and expanding our market presence. Q: How is BRF managing domestic demand and pricing dynamics, especially considering the seasonal consumption patterns in Brazil? A: (Miguel Guilart, CEO) The domestic market remains balanced, with strong demand allowing for price adjustments. We increased prices in January 2025, which were well-received. BRF continues to enhance productivity and logistics, ensuring we meet customer needs efficiently. The current quarter's demand and pricing dynamics are similar to the first quarter, with a focus on increasing market penetration. Q: Can you provide insights into BRF's export strategy, particularly in light of recent tariff changes and market conditions? A: (Miguel Guilart, CEO) Export markets have shown stability, with no significant impact from tariffs. China's volume and pricing remain stable, and we continue to see opportunities in other geographies. Our strategy includes leveraging new export permits and maintaining strong relationships with key markets to ensure continued growth. Q: What is BRF's perspective on the recent acquisitions in Saudi Arabia and China, and how do they align with the company's long-term strategy? A: (Miguel Guilart, CEO) The acquisitions in Saudi Arabia and China are strategically aligned with market demand and opportunities. The new plant in China and the upcoming facility in Jeddah will serve as production hubs, enhancing our regional presence and brand strength. These investments are part of our broader strategy to capitalize on market opportunities and drive growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
BRF: Q1 Earnings Snapshot
SAO PAULO (AP) — SAO PAULO (AP) — BRF SA (BRFS) on Thursday reported first-quarter profit of $191.8 million. On a per-share basis, the Sao Paulo-based company said it had profit of 12 cents. The chicken, beef and pork producer posted revenue of $2.65 billion in the period. The company's shares closed at $3.54. A year ago, they were trading at $3.74. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on BRFS at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-05-2025
- Business
- Bloomberg
Meat Firm Marfrig Makes Offer for Remaining BRF Stake
Marfrig Global Foods SA agreed to acquire the shares it doesn't already own in Brazil's top chicken producer BRF SA. Marfrig is offering 0.8521 of its shares for each BRF share, the companies said in a statement. BRF investors will also have the option to receive as much as 19.89 reais ($3.50) apiece as payment.
