Ramax Takes Over Operations of Bon-Mart Slaughterhouse
Dec, 16, 2024 Posted by Denise VileraWeek 202448
The Ramax Group, a company specializing in the production and beef export in Mato Grosso, will assume operations of the renowned Bon-Mart slaughterhouse located in Presidente Prudente, São Paulo. The plan is to “shift gears” at the facility to target the export market and increase the revenue of the São Paulo-based company by more than 70%. The forecast is to achieve revenue of R$ 1.2 billion by 2025, primarily through shipments of beef cuts to China.
According to the companies, the deal does not involve financial contributions but rather a partnership in which Bon-Mart will retain a share of the revenue.
The Bon-Mart plant is already certified to export to China, but its management has focused on selling bone-in beef domestically. Only 10% of its current revenue, which totals R$ 700 million in 2024, comes from exports. Ramax aims to increase this share to between 60% and 80%, with an initial slaughter capacity of 500 cattle per day starting in January.
According to Magno Gaia, the group’s CEO, the target is to ship 2,700 tons of boneless beef monthly next year. “The slaughterhouse has a more traditional business model. It has been in the market for decades and is highly respected. We’re going to revamp its vision and elevate its revenue through beef sales,” says Gaia. Ramax plans to invest R$ 20 million in operational upgrades and performance enhancements at the plant, particularly for product freezing and maximizing slaughter and deboning capacity, which stand at 780 and 600 animals per day, respectively.
The group expects to obtain certification for exporting to the United States by the first quarter of 2025. In addition to China, the facility is already approved to sell to Chile and European Union countries.
To compete in a sector dominated by giants like JBS, Minerva, and Marfrig, Ramax’s strategy is to connect directly with end consumers in China, utilizing platforms for the “digital distribution” of beef to Chinese restaurants and hotels.
The tool operates like an “Amazon or Alibaba for beef,” Gaia explains. Plans are underway to expand this model to the United States. According to him, in addition to the financial and economic advantages, this strategy helps establish the brand presence of small and medium-sized companies in highly competitive markets.
“We will be able to place boxes of beef produced at Bon-Mart in locations they’ve never reached before, connecting directly with restaurants instead of merely reaching ports,” he forecasts. The beef production at the Presidente Prudente unit, which spans 270,000 square meters, will now carry the Ramax brand.
“This is an institutional move, not just about value. Brands will be more resilient and maintain consistent demand even during periods of reduced consumption in certain countries,” he asserts. This model is already in place at the Redentor slaughterhouse in Guarantã do Norte, Mato Grosso, which the group has been operating since 2022.
Gaia emphasizes that it is “unimaginable” for smaller companies to establish structures like those of large slaughterhouses, including overseas offices. He says the partnership with a digital platform is a “creative and innovative” way to replace such costs and serve clients with just a click. “This is how we’ve found a way to survive in this jungle.”
Gaia plans to integrate more small and medium-sized slaughterhouses into the platform, expanding shipments to Chinese, American, European, and Chilean markets. The company also operates as a trading firm, purchasing and exporting beef from at least 12 companies across the country and conducting business in Paraguay, Argentina, and Uruguay.
He also intends to include other meats, such as poultry, fish, and pork, in the operation.
In 2024, Ramax is expected to generate R$2 billion in revenue, a tenfold increase from 2018. The company projects it will end the year with exports of 40,000 tons of beef, 85% of which will go to China. With the Bon-Mart partnership, revenue is expected to jump to R$3.2 billion by next year.
In addition to cattle slaughter, Ramax operates a feedlot in Juara, Mato Grosso, which can accommodate 35,000 cattle annually.
Source: Globo Rural
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