Brazilian meat processor BRF has sold Argentine chicken and margarine company Avex for $50 million, as it continues restructuring efforts.
Avex operates three plants in Argentina – located in Llavalol, Villa Mercedes, and Rio Cuarto –and has been bought by Granja Tres Arroyos and Fribel.
BRF said the company has a slaughtering capacity of 160,000 birds per day and a processing capacity of approximately 10,000 metric tons per month of products such as margarine, sauces, olive oil, and ingredients for the bakery industry.
The announcement comes just a week after Marfrig secured a deal to buy BRF’s Argentinean subsidiary Quickfood for $55 million.
It was also announced that Marfrig will take over the production at BRF’s plant in Várzea Grande, Brazil, to produce beef patties and meatballs.
The Várzea Grande deal, which is worth BRL 100 million ($25.6 million), will see Marfrig supply products to BRF for five years.
In July, BRF said it would sell some operational units in Europe, Thailand and Argentina as part of restructuring plans.
The policy includes selling off real estate and non-operational assets, as well as minority interests in other companies, with BRF setting a target of BRL 5 billion ($1.28 billion) through the sale of assets.
The company is still reeling from the impact of the so-called ‘carne fraca’ scandal in which officials from BRF, as well as a handful of other Brazilian companies, were accused of paying inspectors and politicians to overlook potentially contaminated or rotten meat, which was due for export.
© FoodBev Media Ltd 2019