Minerva Foods Set to Exit Live Cattle Export Business by Year-End

Minerva Foods has begun the process of discontinuing its live cattle export business, with plans to cease operations by the end of the year, according to CFO Edison Ticle. The decision comes as the business has become increasingly insignificant to the company’s overall revenue, contributing only 2% to 3% on a quarterly basis.

The move is also influenced by the expected completion of Minerva’s acquisition of 16 Marfrig plants in South America, which will further diminish the role of live cattle exports in the company’s portfolio.

“This is a highly volatile business, and maintaining it no longer aligns with our risk/return strategy,” Ticle stated during a recent call with analysts.

In the second quarter of 2024, the ‘other’ category in Minerva’s gross revenue, which includes live cattle exports, saw a 33.5% decline compared to the same period last year, dropping to R$253.1 million. This decrease was largely driven by the planned reduction in live cattle exports as Minerva pivoted its focus away from this sector.

Source: Globo Rural

Access here the original news report: https://globorural.globo.com/pecuaria/boi/noticia/2024/08/minerva-vai-descontinuar-negcio-de-exportao-de-gado-vivo.ghtml

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