Independencia reopens Janauba unit
Independencia has announced that its Janauba unit, in the state of Minas Gerais, has resumed operations. It currently processes 400 cattle per day and employs 300 people. Furthermore, it says that production may increase should market conditions allow it.
The unit, which opened in 2006, is based in an area that is authorised to export beef to the European Union. Within a radius of 200 km around the factory, three million cattle are raised across approximately 72,000 farms.
According to Tobias Bremer, financial director at the company, the unit was reopened because of an agreement it has made with cattle suppliers. “They agreed to supply the animals in spite of previous unpaid debts,” he explained. The agreement states that Independencia must pay the farmers in cash.
Mr Bremer also said that the company is currently evaluating the possibility of reopening other units. When asked about a government project that is currently being considered which would allow meat packers to obtain unpaid accumulated export operation tax credits, Mr Bremer said the initiative would be most welcome. “Independencia's export credit amounts to US$110 million, which would be enough to pay all the farmers as well as other suppliers,' he said, adding that the sale of company assets to obtain working capital is not being considered at the moment.
