The Brazilian Aurora promotes poultry processing and generates stronger gross sales with China
Reuters reports that CEO Neivor Canton said in an interview that Aurora, a privately held company that rivals Brazil-based heavyweights JBS SA and BRF SA, plans to expand its poultry capacity by 20 percent in two years and earn 500 million reais US $ 93 million) in 2021 to achieve this goal.
Aurora processes about 6,000 tons of animal protein every day and exports about a third of that, the executive said.
The strategy underscores Aurora’s resilience in the face of rising feed costs, the disruption of meat factories in Brazil from the COVID-19 pandemic, and the occasional export bans China has imposed following outbreaks.
Headquartered in southern Brazil, Aurora feeds 160,000 tons of corn to pigs and chickens every month. Right now, it is facing a rebound in grain prices that made domestic corn prices “absurd” and shows no sign of easing, Canton said.
Despite the increase in costs in recent months, Aurora achieved record sales in 2020 due to strong exports.
She hopes to further strengthen trade ties with China as the Asian customer is still grappling with the effects of African swine fever, a boon for Brazilian exporters.
Canton said China’s reliance on Brazilian food imports served to adjust domestic meat supplies and raise product prices, improve Aurora’s results, and help the meat sector during the pandemic.
To increase export sales, Aurora is currently applying for three new export permits from China, including two for chicken factories in Santa Catarina state and one for a pork factory in Mato Grosso do Sul, Canton said.
($ 1 = 5.40 reais)