Brazilian food processor BRF SA has reached an agreement to acquire pet food company Hercosul for an undisclosed amount, in a moment the company considers a price rise as corn prices skyrocketed, its Chief Executive Lourival Luz said in an interview.
BRF said the acquisition is part of its plan to diversify its revenue stream and become one of the main players in the pet food segment by 2025. If concluded, the deal with Hercosul would boost BRF’s market share to 4% in this segment from 0.2%.
In an interview with Reuters, Luz said the company is considering a price rise since corn prices have roughly doubled over the last 12 months and probably will not return to 2020 levels.
“No company has enough margins to keep prices stable,” he said.
Source: Reuters.com