Brazil-Problems in beef industry.

BRAZIL.

MEAT PACKERS.

The beef industry in Brazil has expanded at an unprecedented scale in the last 5 years to become the worlds largest global players.

Like many other industries the beef industry was caught off guard by the world financial crisis and the lack of available credit.

Currently some of the local beef packers like Arantes Alimentos and Margen are restructuring under the protection of bankruptcy laws.

The industry also has grave concerns about the future of its main market Russia, who have contracted the imports of beef to levels not seen in the last 7 years.

The main beef plants in Brazil have capacity to slaughter 4,000 head of cattle per day, without running at full capacity there are big losses at the plant before trading begins.

Not all of Brazils meat industry is in trouble players like JBS and Marfig as well as Bertin e Minerva are going from strength to strength at home as well as on the global stage.

These beef giants may well benefit from the financial crisis and expand there meat plant base, even tough at present no one is running at full capacity.