Archive · 15 Aug 2025
Marfrig Benefits From BRF's Strength Amidst Cattle Shortage
Marfrig, a meat company, is doing okay even though they are having trouble with a shortage of cattle in the US.
They own a beef producer that is having to pay more for cows.
However, the company also owns BRF, a poultry and processed-food company that did better than expected.
Also, people like chicken more than ever right now.
This helped Marfrig.
They are buying BRF and expect to finish soon.
Although, there was also a bird flu outbreak in May which did impact the company's exports.
Marfrig's operating earnings fell less than expected in Q2, shares rose up to 4%.
BRF also exceeded analyst estimates, its shares rose up to 5%.
Marfrig plans to buy outstanding BRF shares, pending antitrust approval.
Marfrig faces a cattle shortage in the US, impacting its beef producer.
Strong chicken demand and lower feed costs helped Marfrig mitigate the impact.
- Who
- Marfrig and BRF, Brazilian food companies.
- What
- Marfrig's operating earnings fell less than expected and BRF also beat estimates.
- When
- In the second quarter.
- Where
- Brazil and US.
- Why
- Strong chicken demand and lower feed costs helped Marfrig mitigate the impact of the cattle shortage.
Impact of Trade Bans
Potential Future Growth
Impact of Trade Bans on Exports
Impact of Trade Bans
Trade bans following a bird flu outbreak in May dented profits in the second quarter.
Potential Future Growth
China and European nations are expected to drop their poultry bans and resume poultry purchases soon.
- Marfrig Share Increase
- Up to 4%
- BRF Share Increase
- Up to 5%
- Marfrig's proposal
- Buy the BRF shares it doesn’t already own
- Expected deal close date
- September
- Marfrig's Earnings
- 3 billion reais
- BRF earnings
- 2.5 billion reais