Fernando Galletti: purchase in Uruguay is strategic; US supply tends to fall

The acquisition of Breeders and Packers Uruguay (BPU Meat), a subsidiary of NH Foods Group, with a total investment of approximately US$ 40 million, allows Minerva Foods to reinforce its geographic diversification position and access selected markets, he said in an exclusive interview with Broadcast Agro, the CEO of Minerva Foods, Fernando Galletti. “We believe that Uruguay will have a lot of space to conquer the market. The United States enters into a negative dynamic of the livestock cycle, and Uruguay is one of the supply alternatives for the world.”

With the purchase of BPU, the company becomes the leader in the production of beef in Uruguay, with a total slaughtering capacity of 3,700 heads/day, spread over four slaughterhouses: Pul, Carrasco, Canelones and, now, BPU. According to the executive, Uruguay leaves Minerva well positioned to arbitrate the negative cycle in the United States, which should have a lower supply of cattle in 2023. Regarding the availability of the product in the neighboring country, Galletti assesses that the livestock cycle is positive, but that Uruguay “is suffering a little from the dry climate”, although this is a short-term problem. “In the long term, Uruguay is a great producer. And the main product in the country’s export basket is beef. (Production) has a very positive tradition of constancy and stability,” he says.

Currently, the frigorific unit sends around 85% of its sales to the international market, especially to locations with high income capacity and demand for premium products, such as Europe, USA, Japan, South Korea and China. “It is clear that Uruguay is working on bilateral agreements with some blocs, inviting other Mercosur countries to participate as well, but Uruguay has taken a leading role.”