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SAO PAULO Aug 1 Brazilian food processor BRF SA
does not expect to make large acquisitions in the
near term, executives said on Friday, although the company may
look at small regional partnerships to boost profits.
BRF, the world's largest chicken exporter, completed its
acquisition of Federal Foods in Abu Dhabi this year and is now
more interested in looking at joint ventures with local players
as a way to enter new markets.
"We aren't worried about making big acquisitions at this
time," Chairman Abilio Diniz said on an earnings call, adding he
prefers to focus on simplifying the company's business model and
achieving solid growth.
Chief Executive Officer Claudio Galeazzi reiterated the
point, saying the company is not looking at any "relevant"
takeovers abroad. "We are looking at smaller companies that
could help anchor us in some regions," he said.
BRF's strategy contrasts with that of Brazilian meatpacker
JBS SA, which said on Monday it would buy Tyson Food
Inc's Mexican and Brazilian poultry businesses.
BRF reported a 28 percent increase in second-quarter profit
on Thursday, which it attributed to streamlining operations and
decreasing sales volumes in less-promising foreign markets.
The company's shares rose 3 percent in early Sao Paulo
trading on Friday. It has said the benefits of reorganizing its
brands abroad will be seen in financial results in the second
half of the year.
Galeazzi said BRF plans to take advantage of low grain
prices to fill its stocks, which can store feed supply for three
to four months. Local corn prices in Brazil recently hit a
four-year low due to abundant supplies.
Diniz said neighboring Argentina is a market BRF "would not
abandon in the short or long term," and that it has new staff
there to oversee its "long-abandoned" Paty trademark.
"Our Argentine CEO is also willing to develop other nearby
markets, like Chile," Diniz said.
(Reporting by Caroline Stauffer and Fabiola Gomes; Editing by