Discover how South America, led by Minerva Foods, is poised to dominate 50% of global beef exports in the next five years.
South America Eyes Half of Global Beef Exports by 2028, Says Minerva CEO
In a bold forecast that highlights the shifting dynamics of the global beef industry, Minerva Foods’ CEO Fernando Queiroz has announced that South America is set to account for a staggering 50% of the world’s beef exports within the next five years. This marks a significant rise from the current 40%, signaling a potential reshaping of global beef trade patterns.
The CEO’s remarks came during a recent event hosted by Minerva, a major player in the beef processing sector. This prediction is underpinned by a series of strategic expansions and acquisitions by Minerva, notably the purchase of facilities from their competitor Marfrig. This move not only strengthens Minerva’s presence in South American markets but also reflects the region’s growing influence in the beef industry.
South America’s ascendancy in the global beef market is not just a matter of increased capacity. The region’s predominance in grass-fed cattle farming, seen as a key competitive advantage, and its comparatively lower labor costs, especially against the backdrop of the U.S., the current world leader in beef production, play crucial roles. These factors contribute to a more cost-effective and potentially more sustainable beef production model.
Strategic Acquisitions Propel South America to Beef Export Dominance
Over the past 15 years, Minerva has been on a significant acquisition spree, with 20 takeovers aimed at cementing its position in top beef-exporting nations like Brazil, Argentina, Uruguay, and Paraguay. This aggressive expansion strategy reflects the company’s ambition to become a central figure in the global beef market.
A recent landmark deal in August further underscores this ambition. Minerva announced an agreement to acquire cattle and sheep slaughtering units from Marfrig for R$ 7.5 billion real ($1.54 billion). This acquisition is expected to boost Minerva’s slaughtering capacity by about 44%, allowing it to process over 42,000 heads per day across its units in Brazil, Uruguay, Argentina, and Chile.
Backing this expansion is a robust financial commitment from JP Morgan Bank, ensuring that Minerva has the necessary resources to complete these ambitious plans.
The Future of Beef: South America’s Growing Global Influence
As the global beef market continues to evolve, South America’s emerging dominance, led by companies like Minerva, is a development that industry watchers and stakeholders around the world will be keenly observing. This shift could herald a new era in beef production and trade, with far-reaching implications for producers, consumers, and the global economy.