About Marfrig
Global Foods

  • 2nd largest beef protein company in the world, in capacity
  • It operates in the production, processing, industrialization, sale and distribution of food and value-added products based on beef animal protein
  • The largest global hamburger producer
  • Leading position in the markets of South America and North America
  • 36 production units
  • Products sold to
    more than 100 countries

OPERATING
PLATFORM

(1) Includes Quickfood’s units, whose acquisition was announced in December 2018, but only concluded on 1/2/2019. | (2) Includes the processing unit at Várzea Grande (MT), whose acquisition process started in December 2018 and concluded in April 2019.

SALES
OFFICES

BUSINESS
STRATEGY

For Marfrig Global Foods, 2018 was a year marked by a strategic business redirection. The Company's operations began to focus on beef protein and higher added-value products. The low-leverage capital structure became another priority, a level that already was reached in the period and subsequently has been maintained.

Strategic movements during the year

    In the United States

  • Acquisition of control of National Beef, the 4th largest and most efficient beef company in the United States;
  • Sale of the Keystone Foods subsidiary, which mainly was engaged in the processing of chicken meat, in line with its commitment to financial discipline and the focus on beef protein;
  • Maintenance of Keystone's hamburger business in North Baltimore, Ohio, one of the largest such plants in the United States and a leading supplier to the foodservice channel, an operation that reinforces our commitment to expanding our higher added value product lines.
  • In Argentina

  • Purchase of control of QuickFood, the leading producer of beef derivative foods in the country, owner of Paty, the foremost local hamburger brand.
  • In Brazil

  • Acquisition, in Brazil, of a processing unit in Várzea Grande (MT), which is dedicated to the production of hamburgers, meatballs and kibes. The plant was acquired from BRF, a company with which Marfrig signed a long-term contract to supply hamburgers, among other products.

These moves led Marfrig to become the world's second largest beef company in terms of capacity in 2018 and the largest hamburger producer in the world, with an output of more than 230,000 tons per year.

They also contributed to the significant improvement in the capital structure, which closed the year with leverage of 2.39x (net debt/EBITDA), one of the lowest levels in the sector.

OPERATIONS

The strategic moves made in 2018 consolidated Marfrig's position in the Americas axis. Hence, the operations began to be divided into two platforms: North and South America. In both, it has a diversified production structure, capable of serving the main and most profitable consumer markets in the world.

NORTH AMERICA

It encompasses businesses in the United States: National Beef — the fourth-largest and most efficient beef company in the United States, acquired in June 2018 — and the hamburger plant in North Baltimore, Ohio, one of the largest and most technologically updated facility for this product in the United States. The production capacity is 106,000 tons of hamburger meat/year, frozen and in natura, earmarked for the foodservice industry. National Beef accounts for 13% of the country's total slaughter. It has two plants for this purpose, which together have a capacity of 12,000 animals/day, which totals more than 3 million head/year.

SOUTH AMERICA

Activities distributed between Brazil, Uruguay, Argentina and Chile:

  • In Brazil, it is the second largest beef processor, with a slaughtering capacity of 16,000 animals/day and hamburger production capacity of 69,000 tons. Focusing on the retail and foodservice channels for the local market, among its customers are retail chains, as well as the best restaurants and steakhouses.
  • In Uruguay, it is the largest company in the sector, distinguished by the production and sales of organic meats, mainly for export.
  • In Argentina, in addition to operating two slaughter plants, the company is a leader in the production and sale of hamburgers it acquired Quickfood, one of region's most valuable and recognized brand names.
  • In Chile, it is the main beef importer, also operating a lamb slaughtering plant in Patagonia. Besides the traditional brands, with wide recognition for excellence and quality, it has an extensive processed and high added-value food line.