A lot of attention has recently been focused on Brazilian "protein providers", a group of rapidly internationalising agro businesses that combine humble roots with big ambitions to supply meats to the world. Brazil's plentiful arable land and the growing efficiency of farming have made it the darling of land investors.
Brasil Foods (the combined Perdigão and Sadia), JBS Friboi, Marfrig and Minerva have been rapidly consolidating the industry through take-overs aided with lashings of government pork from the ever-generous development bank, the BNDES. The bank has of late helped the companies to buy international assets by buying into sizeable convertible issues.
The opportunity set for such companies is huge. But worries include overly rapid expansion and lower margins abroad and concerns regarding the I recently investigated the meatpacking industry