MBRF expands Uruguay beef plant in US$70m upgrade as asset sale plan stalls

Investment lifts processing capacity at Tacuarembó facility while earlier divestment effort remains blocked by regulators.

URUGUAY – MBRF, the beef and poultry processor created through the merger of Marfrig and BRF, has completed a US$70m expansion of its beef plant in Tacuarembó in northern Uruguay.

The upgrade introduces an integrated industrial system already used in Brazil, reflecting a broader effort to align production standards across its regional operations.

The facility has sharply increased output capacity, with monthly hamburger production rising from 200 tonnes to 900 tonnes, daily cattle slaughter capacity increasing from 900 head to 1,400 head, and pre-chilling capacity expanding from 1,800 to 2,800 animals.

Marcos Molina, chairman of MBRF, said the upgraded system is designed to improve scale, efficiency and product standardisation, allowing the company to serve diverse markets with higher consistency and speed.

The plant will supply both domestic consumers in Uruguay and export markets, with CEO Miguel Gularte saying the country remains strategically important due to its production standards, animal health reputation and access to global trade routes.

Uruguayan President Yamandú Orsi attended the inauguration alongside senior executives, including Molina, Gularte and MBRF’s local head Marcelo Secco.

Before the expansion, Marfrig had pursued a plan to sell 16 meat-processing assets across South America, including operations in Brazil, Argentina, Chile and Uruguay, in a deal valued at about US$1.5bn (R$7.5bn).

The Uruguay segment of that transaction faced prolonged scrutiny from the country’s competition authority, the Comisión de Promoción y Defensa de la Competencia, as local industry groups raised objections that delayed the review for more than 2 years.

Minerva Foods later attempted to adjust the deal by agreeing to acquire three plants on condition that one facility in Colonia would be resold to the Allana Group, a halal meat producer and exporter.

The transaction ultimately collapsed after deadlines expired without approval, and Uruguay’s competition regulator formally rejected the proposal again in September 2025 following the prolonged review process.

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