Latest news with #meatprocessing
Yahoo
2 days ago
- Business
- Yahoo
Minerva Foods flags potential $300m-plus revenue impact from US tariffs
Minerva Foods, one of Brazil's largest meat processors, has quantified the potential impact on revenue from President Donald Trump's tariffs. Trump exercised his pledge made in July on Wednesday (6 August) to raise import tariffs on Brazilian goods to 50% from 10%, prompting President Luiz Inacio Lula da Silva to request talks with the World Trade Organization. While some Brazilian products are exempt from the US import levies, meat, poultry and coffee are not. The same day those increased tariffs went into effect, Minerva Foods issued its second-quarter fiscal 2025 results. The meat giant said in an accompanying presentation that the impact would amount to an estimated 5% of its net revenue, which based on the full-year 2024 results would equate to around 1.71bn reais ($314.6m), in historical terms. Minerva Foods booked revenue in 2024 of 34.1bn reais. 'Based on the results of the last 12 months, the company's consolidated exposure to the US market accounted for approximately 16% of revenue, with Brazil representing around 30% of that exposure,' the company said on Wednesday. 'Therefore, Brazilian exports subject to the new tariff policy may have a maximum potential impact estimated 5% of net revenue.' However, Minerva Foods explained it may have a certain element of leverage due to its geographical diversity in meat supply to the US. 'The company hereby announces that it accesses the US market through its operations in Brazil, Argentina, Paraguay, Uruguay and Australia. 'It is worth noting that, in line with our geographic diversification strategy, exposure to the US market also takes place through our operations in Argentina, Paraguay, Uruguay, and Australia, allowing the company to maximise its ability to arbitrate between markets, reduce risks, leverage opportunities, and respond efficiently to scenario changes such as this one.' The Brazilian president said in an interview with Reuters on Wednesday that 'he saw no room for direct talks' with Trump at present, in what would amount to a "humiliation". Lula described US-Brazil relations at a 200-year nadir after Trump tied the new tariff to his demands for an end to the prosecution of right-wing former President Jair Bolsonaro, who is standing trial for plotting to overturn the 2022 election, Reuters reported. Meanwhile, Minerva Foods said it posted revenue in the second quarter of fiscal 2025 of 13.9bn reais, an 81.6% increase from a year earlier. The company confirmed in its results presentation that it concluded the acquisition in October of assets in Brazil, Argentina and Chile from meat rival Marfrig Global Foods. It included 11 plants and a distribution centre in Brazil, a facility in Argentina, and a factory in Chile for a total consideration of 7.5bn reais. When the proposed asset deal with Marfrig was first announced in 2023, three plants in Uruguay were also included. However, that part of the transaction was subsequently blocked by Uruguay's competition regulator, La Comisión de Promoción y Defensa de la Competencia (Coprodec), in May last year. Minerva Foods then submitted a revised proposal with the antitrust authority in February this year, with the provision to sell one of the factories post conclusion of the deal. The company said in the second-quarter results presentation that it is still awaiting a response from Coprodec. Elsewhere in the latest results, Minerva Foods' EBITDA print almost doubled to 1.3bn reais from 744.6m reais a year earlier, although the margin dipped to 9.4% from 9.7%. Based on an almost 40% increase in meat volumes, net income surged to 458.3m reais from 95.4m reais. 'Minerva Foods' strong international footprint remains one of the key pillars of our performance. In 2Q-25, approximately 60% of consolidated gross revenue came from international markets, underscoring our export-oriented strategy and the competitiveness of our South American assets,' it said. "Minerva Foods flags potential $300m-plus revenue impact from US tariffs" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Irish Times
5 days ago
- Business
- Irish Times
Company behind Dawn Meats grows profits by 14% to more than €28m
The company behind Dawn Meats grew its profits by 14 per cent to more than €28 million last year, accounts filed with the Companies Registration Office show. Arrow Group, which is one of the largest meat processors in the State, is owned by the Queally family. The group's primary trading company is Dawn Meats, which processes 300,000 tonnes of meat per year and exports to more than 50 countries. The accounts for Arrow Group for the year ended December 2024 show it made a profit of €23.2 million over the 12 month period, which was up from €20.3 million the year before. The group, which is family-owned, paid a dividend of €1.8 million, which was unchanged from the year before. READ MORE Group turnover was down more than €11 million from €759.1 million to €748 million, while the cost of sales was down from €655 million to €642.2 million. In a note accompanying the accounts, the group said it 'continues to face challenges' from the current global economic situation caused by the conflicts in Ukraine and the Middle East, as well as the threat of tariffs and the uncertainty they bring. The group said it has not been impacted directly, but that there has been inflationary price increases in raw materials and other overheads. It said it manages energy costs through forward contracts and day ahead rates to mitigate against sudden increases in price for electricity and gas. 'The business is well placed to manage these risks through various mechanisms such as diversification, price recovery and other means as necessary,' it said. 'Working Capital requirements have decreased during the current year. The group systematically reviews these requirements to ensure they are managed effectively. The group are confident of the ongoing support of our bankers.' Arrow described 2024 as a 'positive trading year'. Its performance was attributed to 'continuing activity' with existing customers and the onboarding of new customers along with new product lines across all key markets. This was offset somewhat by varied protein, transport and commodity price fluctuation on world markets, but the group said it continues to benefit from 'positive customer sentiment' and maintenance of market share. The average monthly number of people employed by the group was 2,217, which was down from 2,238. It spent €107.6 million on staff costs, which was up from €99.7 million in 2023. Last week, The Irish Times reported that Dawn Meats had emerged as the front-runner to take a controlling stake in New Zealand's Alliance Group, a farmer-owned co-operative that describes itself as the world's biggest exporter of sheep meat. Alliance refused to confirm details of the offer, which still faces a shareholder vote and possible political hurdles, although the bid is believed to involve a payment of 270 million New Zealand dollars (€140 million) for a 70 per cent stake in the co-op.
Yahoo
5 days ago
- Business
- Yahoo
Dawn Meats ‘linked with majority bid for New Zealand's Alliance Group'
Dawn Meats is reportedly seeking to acquire a majority stake in Alliance Group, the meat cooperative in New Zealand. Ireland-based meat processor Dawn Meats declined to comment on a report from the Irish Times, which said the company had emerged as the leading bidder to acquire shares in the group ahead of the Saudi Agricultural and Livestock Investment Company (Salic). Sources for the Irish Times suggested Dawn Meats' offer is subject to a shareholder vote at the farmer-owned co-op. The publication added that it 'understands the bid involves a payment' of NZ$270m ($159m) for a 70% interest in Alliance Group. A meeting of the co-op's members is slated for 12 August to discuss the offer, the sources added. Just Food has approached the Alliance Group, which generated revenue last year of NZ$1.8bn but posted a loss after tax of NZ$95.8m, to confirm the speculated approach by family-owned Dawn Meats. County Waterford-based Dawn Meats, which trades as Dunbia in the UK, is a processor of lamb and beef with an annual turnover of €3bn ($3.4bn), according to its website. The business operates 11 facilities in Ireland and 13 in the UK supplying the retail and foodservice channels, as does the Alliance Group. Dawn Meats said it does not comment on market speculation when contacted by Just Food. Salic, which is owned by Saudi Arabia's Public Investment Fund, had not responded to a request for comment at the time of writing. Meanwhile, Alliance Group confirmed in its annual results announcement in November that the business had hired Craigs Investment Partners to 'explore external capital-raising options'. Chairman Mark Wynne said in that same statement: 'While we are at the very early stages of the process, we've seen encouraging interest from both international and domestic parties but for reasons of commercial sensitivity, we will not comment on specific opportunities. 'We will be assessing any external opportunities based on strategic fit, value and expected benefits for the company and our shareholders before making any decisions. Ultimately, the final decision will rest with our farmer shareholders.' In 2023, Alliance Group also posted an after-tax loss amounting to NZ$70.1m based on a turnover of NZ$2bn. The co-op also revealed in its 2024 financial report that it had incurred costs, including those connected with the closure of a local facility, which gave rise to an underlying loss after tax of NZ$47.6m for that year. 'The loss includes one-off post-tax costs of NZ$48.2m in relation to business restructuring costs and other one-off adjustments, including the costs associated with plant rationalisation and redundancies following the closure of the company's Smithfield plant in Timaru,' the company said. Commenting alongside chair Wynne, CEO Willie Wiese said that 'global markets remained exceptionally challenging with prices remaining weaker as consumers continued to keep a tight rein on spending'. Wiese added sales and volumes 'nearly halved' in its largest market of China. However, demand for beef in the US was robust driven by a drought in that country. In an update provided in December following Alliance Group's annual general meeting, the co-op said it had 'turned a corner on a challenging two years following a comprehensive re-set over the past 18 months and is forecasting a return to profitability'. Wynne added: 'Alliance has taken decisive steps to re-set the business and position the company for future success after a tough period for the global red meat sector, in particular for lamb, our largest product group. 'The board's preference is for Alliance to remain a 100% farmer-owned co-operative. However, raising the desired capital from farmer-shareholders now looks extremely difficult. We are early in the external capital raise process being led by Craigs Investment Partners.' "Dawn Meats 'linked with majority bid for New Zealand's Alliance Group'" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
31-07-2025
- Business
- Zawya
Brazil's BRF launches chilled chicken line in Saudi Arabia
SAO PAULO: Brazilian meat processor BRF is launching its first line of chilled chicken products produced in Saudi Arabia, according to a statement sent to Reuters on Wednesday, aiming to get a 10% share of this market in 18 months. The launch marks yet another push by BRF to strengthen its presence in Saudi Arabia, reducing dependence on export sales to the kingdom by increasing domestic supplies in a key market for the company. Demand for chilled chicken in Saudi Arabia in 2024 was more than 300,000 metric tons, the statement said. BRF estimates Saudi Arabia's chilled chicken market to grow between 2.5% and 3.5% per year through 2030, citing data from market researcher Mordor Intelligence. BRF, whose flagship Sadia brand is a market leader in 14 countries of the Middle East, operates a factory in the Saudi town of Dammam and is building another in Jeddah to process meat products. (Reporting by Ana Mano; Editing by Aurora Ellis)
ABC News
14-07-2025
- Business
- ABC News
Meatworks access tightens for producers competing with major supermarket chains
Farmers trying to sell direct to consumers or build their own brands say it is becoming increasingly difficult to access processing at Australian meatworks. A growing number of producers claim abattoirs are "effectively locked up" by supermarkets and exporters. Impact Ag Australia managing director Hugh Killen oversees 17 sheep and cattle farms from Bundaberg in Queensland to Cootamundra in New South Wales. Mr Killen wants to market meat raised on those farms as regeneratively produced — a type of farming based on prioritising soil health and grass-fed animals. The business is privately funded and despite having relatively large numbers of livestock, Mr Killen says it is very difficult to find meat processing that will allow him to build his own brand for Australian consumers. "It's a very limiting factor, getting the kill spot so you can actually take that risk in market and build a brand out." Mr Killen, a former chief executive at Australia's largest publicly listed cattle company AACo, said processing was highly competitive and highly constrained for producers trying "to do things differently". He said 75 per cent of Australian beef was exported and more than 80 per cent of the red meat produced for the domestic market was supplied to supermarkets. "Programs that are not either aimed around the biggest supermarkets in Australia or the biggest export supply chains, it's very hard to build into that space a smaller program in Australia right now," Mr Killen said. "It's not as easy as just ringing up and saying, 'Look, I've got 500 head [of cattle] this week I want to be able to process'. I get that the processors need to have a surety of supply, but the spots are very hard to find." The Australian Meat Industry Council (AMIC) represents abattoir operators, butchers and smallgoods producers. AMIC chief executive Tim Ryan said there was no issue with producers getting access to slaughter in Australia, and the number of animals being processed was relatively stable. "If you look into the 1990s, we processed about 7.5 million head of cattle each year on average and likewise between 30 million and 35 million sheep and lambs every year," Mr Ryan said. National processing volumes for sheep and cattle had remained steady over the past decade, he said. "We've been roughly following those same numbers, so overall we haven't seen a reduction in capacity, but we do see periods of elevated turn-off or undersupply as we go through changing seasonal conditions. "Around the country there's about 137 sites that process livestock or at least the vast majority of those livestock on scale." Typically, most Australian farmers raising livestock sell to a supermarket, feedlot or processor and do not see their produce after it leaves the farm or saleyard. However, it is difficult to determine how many processors or meatworks offer service kills, which is when an abattoir slaughters an animal and returns the carcass to the producer to be sold at their discretion. Mr Ryan said the decision to offer service kill was a commercial decision for abattoir operators. Among those raising the issue is the Australian Food Sovereignty Alliance (AFSA), a group of 350 members, about half of whom are farmers. The organisation is concerned about access to slaughter for livestock. "Years of vertical integration and consolidation of ownership … has really killed off the regional abattoirs in most states. "Queensland actually still has the most small-scale abattoirs still servicing local communities, but Victoria, New South Wales, South Australia, Western Australia, we've been just steadily losing all those smaller facilities." Ms Jonas, a pig and cattle producer, is building a micro-abattoir on her farm near Daylesford in Victoria. She made the decision to build her own facility when the abattoir she had relied upon for more than a decade was sold and new owners introduced minimum requirements for service kills. Ms Jonas said it was one of six abattoirs to close or restrict service kills over a four-month period late last year, prompting AFSA to conduct a survey of producers. Of more than 140 farmers surveyed, almost 80 per cent reported that they had either lost access to an abattoir or expected to lose access soon. The National Farmers' Federation declined to comment. Watch ABC TV's Landline at 12:30pm AEST on Sunday or stream anytime on ABC iview.
