An announcement last week that two of Brazil’s largest corned beef frigorificos were merging sent ripples through the trade. It’s another example of consolidation in an industry with a long history of losses.
“These moves are inevitable, if only to avoid overproduction and financial ruin,” commented a UK importer.
For too long the Brazilians fought among themselves for orders, enabling buyers to force prices lower and lower. But E grade corned beef has risen 60% since the beginning of 2003 thanks to reduced production. Importers will now find it increasingly difficult to influence selling prices.
“These moves are inevitable, if only to avoid overproduction and financial ruin,” commented a UK importer.
For too long the Brazilians fought among themselves for orders, enabling buyers to force prices lower and lower. But E grade corned beef has risen 60% since the beginning of 2003 thanks to reduced production. Importers will now find it increasingly difficult to influence selling prices.
No comments yet