By Brazil Stock Guide – Brazil’s state development bank BNDES approved 72.5 million reais ($13 million) in financing for a high-technology hog breeding project to be developed by privately held Master Agroindustrial SA in Canoinhas, Santa Catarina.
The funding, provided through the BNDES Mais Inovação program, will support construction of a nucleus farm focused on genetics, biosecurity and production efficiency. The project has a total investment cost of 91.2 million reais.
The facility will house as many as 5,000 high-value breeding sows and produce about 150,000 hogs annually. It will be used to preserve, multiply and develop genetic lines intended to improve productivity and consistency across Brazil’s pork industry.
The project includes segregated production areas, animal traceability systems, health monitoring and biosecurity controls. Investments will also cover animal welfare, disease prevention and technology used in genetic selection and herd management.
BNDES President Aloizio Mercadante said the project could help expand Brazil’s domestic supply of genetic material and strengthen exports.
“The project approved by BNDES will contribute to genetic improvement in hog production, with a relevant impact on the technological frontier through domestic production of genetic material,” Mercadante said. “It will also expand supply capacity for both domestic and foreign markets, opening new export opportunities in Latin America and other regions.”
The bank expects the project to improve productivity, reduce animal-health losses and strengthen disease-control programs. The investment is also aimed at reducing reliance on imported breeding technology.
The project will create about 70 direct jobs and 280 indirect jobs during construction. Once operational, the facility is expected to support 35 permanent positions and 140 indirect jobs.
The farm will reuse production waste to generate biofertilizer and biogas for nearby rural properties. The waste-management system is designed to lower disposal costs and improve the use of energy and agricultural inputs.
Master Agroindustrial, owner of the Sulita brand, is one of Brazil’s largest animal-protein producers and the country’s biggest independent hog producer. The privately held company has more than 2,000 employees and works with about 350 integrated farmers in southern Brazil.
The company operates a herd of roughly 45,000 breeding sows and produces about 1.3 million hogs a year, equivalent to 168,000 metric tons of animal protein.
The Canoinhas project is part of Master’s P30 expansion plan, which calls for doubling revenue by 2030. The company aims to increase its breeding herd to 66,000 sows, raise annual production to 2.1 million hogs and double daily slaughter capacity to 6,000 animals.
Master generates about half of its gross revenue in Brazil and the other half from exports. Its main foreign markets include Japan, the Philippines, Canada, Mexico and Chile.
The company has also invested in renewable energy and waste treatment. A system developed with state-owned agricultural research company Embrapa allows it to process production waste, generate biogas and reuse treated water.
Solar power now accounts for about 40% of the electricity consumed at Master’s production units. The company has held ISO 14001 environmental certification for more than 15 years.
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