São Paulo – Brazilian food company BRF released this Tuesday (8) an ambitious plan to achieve international expansion and to steer manufacturing towards higher value-added items. Arab and halal markets will remain one of the company’s priorities, BRF Global CEO Lorival Luz (pictured) said during an online press conference.
The Vision 2030 plan is designed to enable BRF to see BRL 100 billion in revenue and BRL 55 billion in investment in ten years’ time. The company netted BRL 33.4 billion last year and is expected to exceed BRL 35 billion in 2020. The CEO dubbed the plan “a new journey,” and said it was the result of nine months’ worth of research into market trends and shifting consumption habits.
Luz said scheduled investments in Turkey and Saudi Arabia will remain as planned, and that novel investment will be made in high-consumption markets in Europe, Asia, and the United States. BRF announced last year that it would build a plant in Saudi Arabia; last May, it said it would purchase a processing company in Dammam. It already owns a processing facility in the United Arab Emirates.
“The Arab market is a focus and a priority to us, and it will remain to be so on our new journey,” said Luz, adding that operations have already started at the newly acquired Saudi plant. BRF International Markets vice president Patricio Rohner said the Arab market holds emotional appeal for the company, which started shipping product to Saudi Arabia back in the 1970s. “Our focus is on continued growth in those markets,” said Rohner.
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The executives said expansion across the United States, Europe and Asia will revolve around local manufacturing and high value-added foods. “In North America, Europe and Asia, we are not looking to replicate the verticalized manufacturing model we employ in Brazil, which involves everything from breeding the animals to the processed end product,” said Luz. The company is looking to build its name around the world as maker of high value-added food.
In addition to raw poultry, BRF supplies special cuts and a comprehensive range of processed items, including nuggets, sausage, meatballs, etc. “Our international market is basically about raw product exports; processed items do not account for much at this time,” Luz said. He explained that the plan is to get into these new markets with value-added items at once.
The executive said financial restraint will be exercised throughout this expansion, and that the company possesses the flexibility and agility to jump at opportunities, as well as prudence in the face of adversity. In Brazil, BRF is expecting to boost its capacity and modernize its manufacturing operations. There are no plans for new domestic facilities at this time, according to Lorival Luz.
BRF is the owner of brands Sadia, Perdigão, Qualy, and Banvit. Its new strategy also involves leading the ready-to-eat market and becoming a major player when it comes to pet and plant-based foods.
Translated by Gabriel Pomerancblum
