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São Paulo, Brazil, September 10, 2013 -
IFC, a member of the World Bank Group, is investing BRL 184.6 million in Minerva Foods, one of South America’s largest meatpackers, to support its expansion in Brazil, Paraguay, Uruguay and possibly Colombia. IFC’s investment includes a BRL 137.7 million loan and about BRL 46.9 million in equity (equivalent to about $80 million). Minerva’s expansion is expected to create new jobs, concentrated in rural communities.
With over 20 percent market share, Minerva is Brazil’s second largest beef exporter. IFC’S investment will help the company strengthen its environmental and social standards and enhance the traceability of its supply chain through the implementation of an action plan to address the environmental impacts of its regional expansion and in support of a more sustainable beef industry in Brazil and the Southern Cone. IFC’s investment also helps the continued growth of a company that provides employment for more than 10,000 people and indirectly supports about 9,000 farmers in Brazil, Paraguay and Uruguay through its supply chain.
In addition to financing, IFC considers to support Minerva in the conduction of a study aimed at identifying business risks and opportunities associated with environmental and social issues. This will also provide an opportunity to identify areas where IFC could offer advisory services to further support the company’s efforts to grow in a sustainable manner.
“We welcome IFC’s partnership and support to help Minerva to expand our business in a sustainable manner. IFC’s stamp of approval means a lot to us. Minerva is listed on Novo Mercado at the BM&FBOVESPA stock exchange as well as it has ADRs in OTCQX. Moreover, we are already recognized as benchmarking in the sector in many management process as well as industrial operations”, said Fernando Galletti de Queiroz, CEO of Minerva Foods.
“IFC works with our clients and their partners to make sustainability a business driver. Together, we are helping transform markets by defining principles of sustainable production for a variety of commodities and improving the standards under which those commodities are produced, processed and traded” said Loy Pires, IFC Brazil’s Country Head. “We are pleased to work with Minerva to help enhance sustainable standards for the beef industry in Latin America, and particularly in Brazil.”
IFC’s agribusiness strategy focuses on strengthening food security and rural incomes by improving productivity in agriculture, promoting inclusive growth, and helping companies adopt good environmental and social practices.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
About Minerva Foods
Minerva S.A. is one of the leading producers and sellers of beef, leather, live cattle exports and cattle byproducts in South America, and one of Brazil’s largest exporters in the industry in terms of gross sales revenue, exporting to over 100 countries, with operations also in the beef, pork and poultry processing segments. On June 30, 2012, the Company had a daily slaughtering capacity of 11,480 head of cattle and daily beef deboning capacity equivalent to 14,177 head of cattle. With a presence in the states of São Paulo, Rondônia, Goiás, Tocantins, Mato Grosso do Sul and Minas Gerais, as well as in Paraguay and Uruguay, Minerva operates eleven slaughter and deboning plants, one unit to process proteins and twelve distribution centers. In the 12 months ended June 30, 2013, the Company recorded gross sales revenue of R$5.2 billion, up 16.4% on the same period a year earlier.
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