IFC to invest in Brazilian beef processor Minerva

International Finance Corporation (IFC), a World Bank affiliate, has entered into an agreement to invest BRL184.6m ($80m) in Brazilian beef exporter Minerva Foods to support the latter’s expansion in Brazil, Paraguay, Uruguay and possibly Colombia.

As part of the investment, IFC will acquire an approximate 2.93% stake in the Brazilian firm in a deal that could be valued at BRL46.9m ($20.5m), as well as provide a BRL137.7m ($60.3m) loan to the meat company.

The funds provided by the IFC will help Minerva to increase its slaughter and beef processing capacities in South America, strengthen its distribution operations with new distribution centres and expand the processing capacity of its value-added product facility.

In addition, it will allow Minerva to reinforce its environmental and social standards, as well as enhance the traceability of its supply chain to address the environmental impacts of its expansion in support of a sustainable beef industry in Brazil and the Southern Cone.

Minerva holds a 20% market share in the Brazilian meat sector. It employs more than 10,000 people and indirectly supports approximately 9,000 farmers in Brazil, Paraguay and Uruguay across its supply chain.

Minerva Foods CEO Fernando Galletti de Queiroz said: "We welcome IFC’s partnership and support to help Minerva to expand our business in a sustainable manner."

IFC Brazil’s country head Loy Pires said that IFC works with clients and their partners to make sustainability a business driver.

"Together, we are helping transform markets by defining principles of sustainable production for a variety of commodities and improving the standards under which those commodities are produced, processed and traded," Pires added.

IFC is the World Bank arm for the private sector and is the largest global development institution which mainly focuses on the improvement of corporate governance, development of financial market and sustainability.

The IFC’s agribusiness strategy seeks to strengthen food security, inclusive growth, and environmental and social sustainability in agricultural supply chains.

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Image: The funds provided by the IFC will help Minerva to enhance its slaughter, beef processing and distribution capabilities in South America. Photo courtesy of Koos Schwaneberg.