MBRF eyes price rebound after China lifts chicken ban

BRAZIL – Brazilian food company MBRF has said that China’s decision to restart imports of chicken meat from Brazil could help stabilize domestic prices that fell after a temporary export suspension earlier this year.

Executives from the company told Reuters that the move also opens the way for exports of products destined for processing at MBRF’s Chinese facility, which had been affected by the trade disruption.

Shipments were halted in May after cases of bird flu were detected in Brazil, prompting authorities to suspend exports to several markets, including China, the country’s largest buyer of poultry.

With overseas sales on hold, much of the chicken meat was diverted to the local market, which led to oversupply and a sharp drop in average prices during the third quarter, according to company data.

The reopening of China’s market comes at a time when MBRF is navigating leadership and structural changes following the merger between meat processor Marfrig and food company BRF earlier this year.

Leadership and Merger Developments

MBRF recently announced the appointment of Miguel Gularte as its global chief executive officer, formalizing his leadership role after overseeing BRF’s restructuring under Marfrig’s majority ownership since 2022.

The company described itself as one of the world’s major food producers, generating roughly US$30 billion (about KSh 4.6 trillion) in annual revenue, with operations spanning pork, poultry, and processed foods.

Gularte will report directly to MBRF Chairman Marcos Molina, the founder of Marfrig, who led the consolidation of both firms to streamline management and enhance efficiency across their supply chains.

Before taking the helm of MBRF, Gularte served as CEO of Marfrig and later headed BRF, working under Molina’s direction to align both companies’ strategies ahead of the merger.

Future Plans and Market Outlook

Discussing the group’s structure, Gularte said the combined entity expects to achieve annual synergies worth around US$200 million, exceeding the earlier projection of US$160 million announced in May.

Both Gularte and Molina noted that MBRF is considering listing its shares on the New York Stock Exchange, following the path taken by rival JBS, though they did not specify a timeline for the plan.

Molina emphasized that the company would only proceed with the listing if it enhances shareholder value through stronger market performance and improved trading multiples.

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