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.