Brazilian food sector company Sadia, intends to build a factory in the United Arab Emirates in 2008. Investment should total 100 million Brazilian reais (US$ 57 million) as informed the chairman of the company's board of directors, Walter Fontana Filho, in an article published Wednesday, October 31, in the São Paulo financial daily Valor Econômico.
Sadia is the 18th largest food company in the Americas and second biggest in Brazil, behind Perdigão, which became first in the food sector in the last few days, The new Arab factory is going to process beef and chicken to supply the great demand in the region.
Company exports to the Middle East total US$ 550 million a year. In the first nine months of 2007 alone, of the total Sadia exports of 2.4 billion Brazilian reais (US$ 1.4 billion), 22% were to the Arab market.
"Due to exports, we already have operations in the Emirates (sale and distribution), with 20 employees in Dubai. What is most important is development of a local project. In future we may be able to develop partnerships in the country. Acquisitions or leases are also not discarded," stated Fontana.
Sadia has been exporting to the Arabs since the 1970s. The company was the Brazilian pioneer in product sales to the Middle East. The organization started exporting whole chickens to the Arabs and introduced the consumption of chicken pieces in the region in the 1980s. "There they call us Sádia. We are 'top of mind' in chicken," he explained.
Halal slaughter, which follows Islamic rules, was an important measure adopted by the company to win the market. The Middle East is so important to Sadia that the brand has exclusive advertising campaigns for the region. As is the case with Brazil, the advertisements are starred by a character. Chicken Henrietta is very successful in the Arab world.
Abroad, apart from the Middle East, the company only has an exclusive advertising campaign in Russia, where the first international Sadia factory is being built. The company invested 92 million reais (US$ 53 million) in the construction in partnership with a local company, Miratorg. The unit is going to start operating in January 2008 and is going to industrialize chicken and pork.
Fontana also stated that the Sadia industrialization process is not going to stop with the factory in the Emirates. In 2009, another plant abroad should start being built, with investment of 100 million (US$ 57 million). According to him, the new projects are in line with the company growth strategy.
In the first nine months of 2007, the company posted gross revenues of 6.9 billion reais (US$ 4 billion), with net revenues of 6.1 billion reais (US$ 3.5 billion), a performance 25% greater than in the same period last year.
The company's net profit reached 156.4%, totaling R$ 394 million. In terms of volume, sales registered growth of 11.8% and reached 1.55 million tons.
Sadia currently employs around 49,000 people and, through its Agricultural Sponsoring Program, has partnerships with around 10,000 poultry and pork raising farms.
Sadia was established in 1944 and is headquartered in Santa Catarina in Southern Brazil. Apart from chicken, the company also produces food made from pork, cattle and turkey, and also makes pasta and margarine. The enterprise exports around 250 products to 92 countries.
Sadia has a total of 13 industrial units, two cattle farms and distribution centers in seven Brazilian states. Abroad, they have trade offices in 11 countries, like Panama, Chile, Uruguay, Argentina, Germany, England, Russia, Turkey, the United Arab Emirates, China and Japan.
Most of Sadia's units are located in southern Brazil. Five industrial units are located in the state of Paraná, in the cities of Ponta Grossa, Dois Vizinhos, Paranaguá, Toledo and Francisco Beltrão.
Santa Catarina has two units, one in Chapecó and another in Concórdia. In Rio Grande do Sul, the company also has a unit in the city of Três Passos. Sadia also has units in Minas Gerais (Southeast), in the city of Uberlândia, in Rio de Janeiro (Southeast), in the city of Duque de Caxias, in Mato Grosso (Midwest), in Várzea Grande and Lucas do Rio Verde; and also in the Federal District, where Brazilian capital Brasília is located.