Marfrig Global Foods acquires majority stake in US-based National Beef Packing Company
The Brazilian firm said the acquisition...
Marfrig Global Foods SA has agreed to buy a majority stake in National Beef Packing Co., in a deal worth $969m.
The Brazilian firm said the acquisition will make it the world’s second-largest beef producer, with consolidated sales of US$13bn.
Under the deal, Marfrig, formerly known as Marfrig Alimentos SA will buy 48% of National Beef from Leucadia National Corp. and 3% from other shareholders.
Once the transaction closes, Leucadia will remain a minority shareholder in National Beef, with a 31% interest.
“The acquisition of National Beef is a unique opportunity,” said Marfrig CEO Martín Secco.
“With the transaction, we will have operations in the two largest beef markets in the world, we will reach extremely sophisticated consumer countries and we can grow by maintaining strict financial discipline.”
Under the deal, Marfrig will boost its total slaughter capacity and will also gain access to the Japanese and South Korean markets, which are currently closed to beef exports from Brazil.
Headquartered in Kansas City, USA, National Beef currently has a slaughtering capacity of around 12,000 heads of cattle per day.
It owns two slaughterhouses and accounts for approximately 13% of the US cattle slaughtering capacity.
In a statement, Marfrig Global Foods announced that key executives of National Beef, including the company’s CEO Tim Klein, will remain at the company.
Marfrig Global Foods also announced that it has decided to sell Keystone Foods, a global food services company that supplies meat products to leading consumer brands.
“The acquisition of National Beef reflects our sustainable growth strategy,” says Marcos Molina, chairman of the Board of Directors of Marfrig Global Foods.
“From now on, we have become the Brazilian company of the sector with the best financial health, proved into the lowest rates of leverage.”
SokoFresh's cold storage units will stop food waste in Kenya
A foodtech company in Kenya is using solar energy to help smallholder farmers keep harvested produce cool to prevent food waste.
SokoFresh is a member of The Circulars Accelerator, an initiative to help entrepreneurs scale innovations that will help the world move towards a circular economy – in which waste is eliminated and resources are used again and again.
New cold storage units to prevent food waste
Small-volume farmers who grow avocados, mangos and French beans in Kenya, are helping to test the model from SokoFresh, which manages mobile cold storage units, that run on 100% solar energy.
By paying a small amount (1 Kenyan shilling) per kilogram on a pay-as-you-go basis, farmers or produce buyers can affordably access cold storage, when they need it.
SokoFresh plans for 400 cold storage units, in five years, to boost income for 35,000 farmers.
Cold storage units will support Kenya’s farmers
About 90% of Kenya’s agricultural produce comes from smallholders, who don’t have the kind of cold storage solutions available to large-scale producers. This means lots of produce perishes in outside temperatures after being harvested.
“More than 30% of all food produced in the world for human consumption gets lost or wasted”, said a representative from SokoFresh says. “Food loss in Africa occurs almost entirely in the production and distribution stages.”
Farmers using the model can earn up to 50% more on their harvest, while buyers receive more and better quality produce.
The cost of logistics is also reduced, because trucks are picking up full loads that have been stored in the cold storage units by multiple farmers.
Enviu, the Netherlands-based impact venture organization behind SokoFresh, hopes to have a network of 400 cold storage units in the next five years. This would help 35,000 farmers, creating 3,000 new jobs in rural areas and reducing greenhouse gas emissions.
Sokofresh supports UN Sustainable Goal 12
Around 14% of food is lost after harvest on farms and at the transport, storage, processing and wholesale stages, according to the Food and Agriculture Organization of the United Nations. This food has a value of more than $400b a year.
UN Secretary-General António Guterres last year described food loss and waste as an “ethical outrage.”
By 2030, UN member states have pledged to halve food waste and reduce food loss as part of Sustainable Development Goal 12.
SokoFresh is a part of the solution to food security and ending food waste.