Barretos – The shortage of grain in the United States will likely benefit meat packing company Minerva, and Brazil as a whole, when it comes to meat exports. Unlike the Brazilian industry, which uses pasture to feed 90% of its livestock, the United States rely mostly on grain, because its cattle remains confined for longer periods. As a result, USA beef production will suffer, making way for Brazil, especially in regions such as the Middle East, Far East, and Eastern Europe.
“From the supply perspective, the United States will cease being a player to become an importer,” said Minerva CEO Fernando Galletti de Queiroz during a press conference in Barretos, in the state of São Paulo, during which the company introduced its new logo and marketing strategy to journalists. Minerva will start using the name Minerva Foods in all its products, and strive to strengthen its image on the market.
Not citing any figures, Queiroz claimed that there will be more room for Brazilian beef in Africa and South America as well. In addition to the United States’ being unable to export, Australia will probably sell more meat to the USA, thus leaving other markets open. Minerva has already performed well in the second half of this year, export-wise, at 277,000 tonnes shipped, up 8.6% from the same period of last year.
The Arab countries are a major market to Minerva. From April to June this year, Egypt accounted for 10.5% of exports, and Saudi Arabia answered to 5.1%. The only country which imported more than Egypt was Russia, at 31.5%. Minerva has nine offices around the world, three of which are in Arab countries: Lebanon, Algeria and Saudi Arabia. The company does halal slaughter, in accordance with Islamic law, a requirement in some Arab countries. The company exports to more than 100 different countries.
Minerva’s outlook is good both domestically and internationally for the next few months. The grain crisis in the United States, which is now in its second back-to-back year of drought, is also expected to drive up pork and poultry prices in Brazil, because maize is scarcer and thus higher-priced. This will make beef more attractive on the domestic market and cause its prices to hike – though at a lower rate than the prices of other types of meat.
Overseas, Brazil currently sells its meat at prices 20% lower than the international competition. The industry is bearish right now, as demotivated farmers sell large amounts of livestock, including breeders, for slaughter. “This is a natural trend,” says the Minerva market research manager Fabiano Tito Rosa. The increased supply causes an increase in competitiveness for the meat industry, which will also benefit from higher prices to end consumers. “The price outlook for the fourth quarter is good,” said Rosa.
Brand
The Minerva Foods logo will be included in all meats sold by the company from now on, including the cuts sold at supermarkets, according to marketing manager Fabio Teixeira. However, Minerva will not promote campaigns for end consumers yet. Instead, it will focus on strengthening its image among small and medium retail businesses, which comprise its main clientele.
The company will promote events for storeowners, who are expected to be the bridge between Minerva and end consumers. “We will support the traders so that they will talk about us,” says Teixeira. The company will present itself as the most efficient food company in the world. It will highlight its risk management abilities, operational flexibility, solidity, and long-standing market positioning based on careful management, the ability to anticipate trends, and distribution network.
Minerva will continue to use its two other brands, Friasa and Pul, but these will get the same visual treatment as the Minerva Foods brand, making it clear to clients that all are all under the same parent company. Friasa and Pul are used respectively in Paraguay and Uruguay. Out of Brazil, the cuts will remain the same, i.e. larger sized for clients to process, but according to Teixeira, the company will also make promotion among traders to make them aware that all brands are a part of Minerva Foods.
*The journalist travelled by Minerva’s invitation. Translated by Gabriel Pomerancblum
