Brazilian food group Marfrig has expanded its beef production capacity through an agreement to lease 11 meatpacking plants from meatpackers of the Margen Group and Mercosul.

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The facilities have a combined slaughter capacity of 8,800 head of cattle a day and 1,700 tonnes of prepared products each month.


The leased units are located in the Brazilian states of Goiás, Pará, Rondônia, Mato Grosso do Sul, Paraná and Rio Grande do Sul.


The company said that the move is expected to further strengthen its positioning in the sector and maintain the diversification of its production.


“Marfrig considers the transaction strategic during a time of gradual growth in cattle supplies and improvement in the Brazilian and international beef markets,” the group said.

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The conclusion of the lease agreement is subject to due diligence.