In strong expansion, the egg company estimates revenues of R$2bn this year
01/13/2023
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Denilson Dorigoni — Foto: Divulgação
After investing more than R$1.5 billion in 15 acquisitions since it was created, in 2006, by businessman Ricardo Faria in Nova Mutum, Mato Grosso, Granja Faria is preparing to take the lead in the Brazilian commercial eggs market this year, with an expected revenue of R$2 billion, compared to R$1.3 billion in 2022.
The leap will be guaranteed mainly by the purchase of BL Ovos, announced in December and closed for R$290 million. But it also includes organic growth and the effective entry into the commercial phase of a new business field – the production of organomineral fertilizers.
In the meantime, however, new purchases may be announced. “We are prospecting,” said CEO Denilson Dorigoni. The executive explains that the total injection from the beginning includes assets and improvements and adjustments made after the incorporation.
Granja Faria is waiting for the green light from CADE, the antitrust regulator, to take over BL Ovos’s operations, and the company’s farms will also be improved with new technologies. The antitrust agency’s approval is expected to come in the coming weeks.
With the acquisition of BL, which has units in Espírito Santo and Goiás and posted revenues of R$300 million last year, Granja Faria expands its production and geographic presence. The brand is likely to be maintained because the egg market is still very regionalized.
“We have 22 units, all with their production and commercial areas. And with BL we will start serving Espírito Santo and Bahia, where we were not present,” said Mr. Dorigoni.
With headquarters and commercial egg production in Santa Catarina, and units in Rio Grande do Sul, Paraná, Minas Gerais, Goiás, and Tocantins, Granja Faria is focused on establishing itself in the Northeast region.
The fertile eggs are produced in units in Rio Grande do Sul, Santa Catarina, Paraná, Goiás, and Mato Grosso. In this division, 50% of the production is exported.
As the commercial eggs area was a natural consequence of the fertile eggs business, a large part of the company’s hens are free-range — about 1.5 million, out of a total that will reach 13 million, including the 3 million that will come with BL Ovos and the 4 million of the fertile egg division.
Mr. Dorigoni calculates, the total number of birds is around 200 million, and about 5 million of these are free-range.
Still in the egg segment, Granja Faria also has a processing industry that manufactures liquid and powdered products, sold to companies in the pasta and bakery segments, among others. This business accounts for nearly 5% of the company’s revenues.
Another area in which the company has been operating since 2021 is organomineral fertilizers. And for this one, the perspectives are for a strong advance in 2023, when production will start to take off in two plants, in Tocantins and Minas Gerais. The turnover was marginal in 2022 but is likely to reach R$200 million this year, according to the CEO.
*By Fernando Lopes — São Paulo
Source: Valor International