Marfrig benefits from BRF as chicken cushions our livestock press

MarFrig Global Foods SA benefits from BRF SA, as the poultry and processed food business still extract profits from a strong world demand, which helps to defend the impact of a serious livestock shortage in the US. Marfrig’s operating earnings dropped less in the second quarter than expected, while BRF also estimates analysts. Marfrig’s shares rose as much as 4% on Friday, while BRF achieved as much as 5%. The results are the first since shareholders in both Brazilian businesses have approved Marfrig’s proposal to buy the BRF shares he does not own. While the agreement is still pending antitrust approval, Marfrig expects it to close by September, CFO Tang David said in a conference with journalists on Thursday. Marfrig, who is US beef producer National Beef Inc. Control, is one of the businesses printed by the worst livestock deficit in decades. Producers-including larger competitors JBS NV and Tyson Foods Inc.-is forced to pay record-high prices for animal weight animals, and they are struggling to pass on the costs to consumers. The surge of the demand for chicken and low bird feed costs has so far helped to cushion the impact, even if trade ban is after an outbreak of bird flu in May in the second quarter. “BRF reported a better-than-expected quarter, a positive surprise despite the negative impact of Chinese and EU export constraints on Brazilian chicken,” the analysts of XP Inc., including Leonardo Alencar, told clients in a note. “The prospect of lower grain prices, along with a solid demand, continues, with a margin surgus expected after the end of the trade.” BRF counts on China and European countries that drop their poultry ban and resume poultry purchases soon, said CEO Miguel Gularte said during a earnings call on Friday. While chicken supplies in Brazil and other producing countries are expected to grow to 2% in the short term, demand worldwide must increase faster, according to Gulare and BRF CFO Fabio Mariano. The growing income in Brazil and the Middle East and Asia, as well as BRF’s move to increase its value-added portfolio, should also push prices higher. Marfrig’s earnings before items such as interest and taxes fell 11% from a year before to 3 billion Reais in the three months ended in June. This compares with a 2.12 billion-arranged average of analyst estimates compiled by Bloomberg. BRF reported adjusted earnings of 2.5 billion Reais, which obtained the estimate of 7,39 billion Reap analysts. “It was an extremely challenging quarter,” Gularte told journalists on Thursday, referring to the impact of the outbreak of the bird flu on the export of the company. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.