Pif Paf Alimentos prepares expansion plan
One of the main regional poultry and pork processors in Brazil, Pif Paf Alimentos, based in Minas Gerais state, last year tried to triple in size and close in on some of the giants in the domestic market. Backed by investment funds, the company submitted a bid for the assets that Brasil Foods (BRF) had to sell following a ruling by Brazil's antitrust body, CADE.
The plants and brands on offer from BRF would make the company a major Brazilian player, with more than 20 plants in a dozen states and revenues of almost R$ 3 billion. The deal, as we know, fell through. The Brasil Foods units went to Marfrig.
Without the BRF assets, Pif Paf is trying another tack. "We want to double production, focusing on processed products, through expansion and acquisition of other plants," says the president of Pif Paf, Luiz Carlos Costa. The executive is in talks with three investment funds about finance, but has not said how much the company intends to invest.
The idea is that investors become partners in the new business. The investor-partner will be chosen by next month. With the expansion, the company could get close to the R$ 3 billion in sales it had planned with the acquisition of BRF's assets. That would get it close to Aurora, with net revenues of R$ 3.4 billion, and probably ahead of JBS, which may earn about R$ 1.5 billion a year from the assets it has leased from Doux Frangosul. Last year, the Pif Paf grossed about R$ 1 billion, according to Costa.