Brazilian meat producer Marfrig will acquire a 51% stake in American beef producer National Beef for an undisclosed sum. The diversification into the U.S. market comes as Marfrig has suffered a 5.0% decline in revenues in the past two years to December 2017, S&P Global Market Intelligence shows. A further diversification away from the Brazilian market comes as exports of fresh and frozen beef have begun to improve. Panjiva data shows exports climbed 16.8% on a year earlier in the three months to February 28. That followed the end of food safety scare in mid 2017, as outlined in Panjiva research of March 19.

Chart shows exports of fresh and frozen beef from Brazil. Lower panel shows change on a year earlier. Source: Panjiva

Marfrig meanwhile outpaced the average with a 55.5% rise, helped by a 36.1% increase in exports to China and a return to exports to Egypt after near-zero a year earlier.

Chart segments exports of fresh and frozen beef from Brazil by Marfrig according to destination market. Source: Panjiva