Tyson Do Brazil Sees Improving Conditions In Poultry Sector
03 Junho 2009 - 8:03PM
Dow Jones News
The Brazilian unit of U.S. giant meat and poultry processor
Tyson Foods Inc. (TSN) said Wednesday that the "worst is over" in
the financial crisis.
"We are seeing an increase in [chicken] prices and more demand
both internationally and in Brazil," Joster Macedo, president of
Tyson do Brasil, told Dow Jones Newswires.
Macedo said the global economic situation will continue to
improve and the demand for food will remain. "The 2009 crisis won't
impact this," he said.
Although credit tightened for imports into countries such as
Russia, credit is now more readily available. The banks, however,
have tighter processes so it can take more time to receive the
credit, he said.
In September 2008, Tyson, the world's largest meat processor,
earmarked $200 million over an 18-month period to be invested into
Brazil, the world's leading chicken exporter.
At the same time, Tyson acquired three companies in Brazil.
Tyson bought Macedo Agroindustrial in Santa Catarina state and two
startup companies, Avicola Itaiopolis, or Avita, in Santa Catarina
state and Frangobras in Parana state.
Tyson, by 2011, aims to hike its Brazilian production capacity
to 816,000 birds per day. The company wouldn't reveal its current
capacity.
Tyson do Brasil expects export growth at above Brazil's Chicken
Exporters Association's estimate of 5% growth industry wide in 2009
versus 2008.
Macedo admitted, however, that bottlenecks have appeared, such
as an insufficient supply of chickens in the regions near its three
plants. There's not a big culture of producing poultry in these
areas. Tyson therefore needs a supply of poultry from within 100
kilometer, he said.
To help the supply, Brazil's southern regional development bank,
or BRDE, has allocated a 100-million-Brazilian-real ($51.4 million)
credit line to support poultry producers in the region.
Tyson do Brasil is also talking with other Brazilian banks to
encourage new lines of credit to help local poultry producers in
the area, he said.
Exports To China
Tyson do Brasil's is already exporting chicken products to
markets such as Europe, South Africa and Hong Kong, said Macedo.
And Tyson do Brasil expects to generate 40% of its sales from
exports this year.
Macedo said that the new export agreement signed in May between
China and Brazil to export chickens direct to China is unlikely to
change its volumes.
Tyson do Brasil, like many Brazilian companies, is already
selling chickens to Hong Kong that end up in China, he said. The
agreement, however, should make this more lucrative as companies
can sell direct to China and incur fewer costs, such as freight, he
added.
M&A, Integration
Macedo said Tyson doesn't rule out further acquisitions in the
future in Brazil, but the company isn't in talks at the moment.
Indeed, the company is currently focused on its integration in
Brazil.
Tyson legally completed the merger and is in the process of
integrating systems, people and cultures, Macedo said.
-By Tony Danby; Dow Jones Newswires; 55-11-2847-4523;
Anthony.Danby@dowjones.com