Marfrig buys land in Paraguay to build a US$ 100-million slaughterhouse

Marfrig has bought land to build a slaughterhouse in Paraguay, a project worth around US$ 100 million that was already on the radar.

In September of last year, the company had announced a non-binding agreement with the Paraguayan Association of Cattle Breeders to build a unit. The move came after Marcos Molina’s firm gave up on buying Frigonorte, a company in financial difficulties.

By joining a group of cattle raisers that can provide 350,000 heads of cattle per year, the company seeks to solve the problem of building a new factory, and that is to rely on raw material, explained Marfrig CEO Miguel Gularte, at a Credit Suisse event in 2020.

The investment will mark the company’s entry into the country, where Brazilian rival Minerva is the largest meatpacking industry. Currently, Marfrig produces beef in Brazil, Argentina, Uruguay, and the United States. The company also produces lamb in Chile.

See each country’s participation in Marfrig’s exports in the graph below:

Marfrig exports by country of origin | Jan to Dec 2020 | TEU

Graph source: DataLiner  (To request a DataLiner demo click here)

The expectation is that the Paraguayan slaughterhouse, with the capacity to slaughter up to 1,200 animals per day, will be ready by the end of 2022.

According to a source, the slaughterhouse will be built in the city of Yby Yaú, in the Department of Concepción.

Information about the purchase of the land was disclosed firsthand in the Paraguayan press.

Source: Valor Econômico

To read the full original article, access the link below:

https://valor.globo.com/agronegocios/noticia/2021/06/18/marfrig-compra-terreno-no-paraguai-para-construir-frigorfico-de-us-100-milhes.ghtml

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