What Next for Brazil's Meat Sector?

What Next for Brazil's Meat Sector?

Brazil Structured Finance M&A Economy & Policy Corporate & Sovereign Strategy

 by John Rumsey Two years ago the Brazilian meatpacking industry was a dog’s dinner. There were far too many small competitors fighting for market share. That led to dumping on the home market: cut price filet mignon predictably led to a chain reaction. Retail prices for other beef cuts were culled, followed by those for pork and then chicken, notes Gustavo Wigman, food analyst at Goldman Sachs in São Paulo. That was coupled with a tight market for cattle, which compressed margins in the sector, he notes. The industry was ripe for consolidation. Indeed, since the start of 2009, 10 meatpackers have sought judicial protection from creditors. They include Independ&

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