Minerva Foods has a positive outlook for the company’s results in 2023, with the reopening of the Chinese market, diversification of exports, and increased supply of cattle in Brazil, according to executives of the company in a conference call with analysts on Wednesday (May 10).
“We are very optimistic… The local markets in South America will suffer, but our focus on exports and our significant investment in the distribution structure around the world gives us this flexibility, an agility that is unique,” said Minerva Foods President, Fernando Galletti de Queiroz.
In the first quarter, the company was impacted by the temporary suspension of beef exports to China. Shipments to other markets, including Chile and the United States, helped to partially mitigate the negative effects of the Chinese embargo.
With the resumption of purchases from China, Minerva expects an improvement in gross margin from the second quarter onwards. “We have a very optimistic outlook for the third and fourth quarters this year,” said the company’s CFO, Edison Ticle.
The supply of animals for slaughter in Brazil is expected to increase this year, with an even larger number of animals in 2024, reducing the price of beef.
In this scenario, Brazilian beef is expected to gain competitiveness in foreign markets, at a time when the United States is facing restrictions on cattle supply.
“The reduction (in supply) from the US opens up opportunities for us that are very significant in markets that the US served – Mexico, Japan, South Korea, Taiwan – but mainly in the US market itself. Even with the quota system, our competitiveness continues to grow. We are optimistic and believe that the big markets for us are in exports,” said Galletti de Queiroz.
The executives said that Minerva also continues to be attentive to acquisition opportunities, with a focus on financial discipline.
By Anna Flávia Rochas
Translated from: Jornal Campo Aberto