S\u00e3o Paulo \u2013 The merger of food manufacturing companies Perdig\u00e3o and Sadia, concluded last evening (18th), will be announced today (19th), in the city of S\u00e3o Paulo, by the chairmen of the new company’s Board of Managers, Nildemar Secches and Luiz Fernando Furlan.<\/p>\n
To the technical advisor at the Brazilian Consumer Protection Institute (Idec), Marcos P\u00f3, the merger may lead to rising prices and deteriorating product quality, as a result of reduced competition. \u201cCompanies do not merge in order to favour consumers, they merge for profit,\u201d he said.<\/p>\n
Previous merger experiences show that consumers usually do not benefit from this type of operation, according to P\u00f3. To him, competition is the only way of ensuring that companies will provide quality services and reasonable pricing.<\/p>\n
The marketing Professor at the School of Economics, Administration and Accounting at the University of S\u00e3o Paulo (FEA USP), Marcos Campomar, is \u201coptimistic\u201d about the results of the merger of the two companies. According to him, the new enterprise will be able to offer higher quality products at lower prices.<\/p>\n
Improved services would result from better use of equipment and labour force in the factories belonging to both brands. In Campomar’s assessment, the merger should also lead to increased quality standards.<\/p>\n
The Professor does not rule out the possibility of the emergence of a monopoly, as the merger is going to combine the two companies’ market penetration forces. \u201cThat should exert pressure on smaller companies,\u201d warned Campomar. In this scenario, he believes that other companies would only find space among the lower income population.<\/p>\n
As for dismissals, Campomar believes that they should take place at managerial levels, so as to adapt the administrative structure. He does not believe that \u201cmass dismissals\u201d should occur. <\/p>\n
With regard to suppliers, Marcos Campomar forecasts a more complex situation. According to him, as a consequence of market concentration resulting from the merger, the new company would have greater bargaining power, and thus it might demand better conditions for purchases. \u201cWhenever a buyer is strong, it can force whichever prices it wants,\u201d he explained.<\/p>\n
To the president of the Santa Catarina Poultry Association (ACCS), Wolmir de Souza, the situation of poultry farmers should remain the same. \u201cTheir policy is still the same, nothing has changed,\u201d he claimed. According to Souza, many farmers provide their services exclusively to large foodstuff companies, which own the products and inputs.<\/p>\n
Souza says that he is favourable to the merger, as he believes that the new company will have better conditions to make room in the international market. \u201cWe must be competitive abroad.\u201d He expects new gains from eventual exports to be \u201cshared with the farmers.\u201d<\/p>\n
Together, Perdig\u00e3o and a Sadia are responsible for purchasing approximately 35% of swine production in Santa Catarina, the state in which the companies are based.<\/p>\n
*Translated by Gabriel Pomerancblum<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
S\u00e3o Paulo \u2013 The merger of food manufacturing companies Perdig\u00e3o and Sadia, concluded last evening (18th), will be announced today (19th), in the city of S\u00e3o Paulo, by the chairmen of the new company’s Board of Managers, Nildemar Secches and Luiz Fernando Furlan. To the technical advisor at the Brazilian Consumer Protection Institute (Idec), Marcos<\/p>\n","protected":false},"author":2315,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-30895","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy"},"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/30895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2315"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=30895"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/30895\/revisions"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=30895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=30895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=30895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}