Brazil co-op has U.S. partner

The difficulty of marketing cattle to meatpackers is driving Brazil's cattle breeders to build their own slaughter and processing plants. In Paran state, Corol Cooperative Agroindustrial plans to build a plant with an initial harvest capacity of 500 animals/day, investing $33.9 million (US) in a joint venture with a U.S. company. About half the capital will be foreign and the rest raised through bank

The difficulty of marketing cattle to meatpackers is driving Brazil's cattle breeders to build their own slaughter and processing plants. In Paraná state, Corol Cooperative Agroindustrial plans to build a plant with an initial harvest capacity of 500 animals/day, investing $33.9 million (US) in a joint venture with a “U.S. company.”

About half the capital will be foreign and the rest raised through bank financing. Corol officials won't specify which U.S. company is involved, and a canvass of the larger U.S. meat packers didn't turn up any admitted candidates. Corol execs estimate the joint venture will be formed in a month.

The project stipulates each cattle breeder will have a quota of animals to deliver each month. The plant will have the potential to increase production to 2,000 animals within four years. Production will be bound for export markets.