Having struggled for almost a year, Brazilian meat packer Margen has closed down 16 abattoirs, leaving 3,500 of a total of 5,000 staff unemployed.

"The market is very bad and banks have restricted credit,” says managing director, Adalberto Silva. “There is no point in going on like this.”

Of the 16 abattoirs that have closed, four had been inactive since August. “We have no money to pay for cattle,” adds Mr Silva.

The company will keep only its distribution centres, its salted beef factories and a pig farm in the state of Goiás. Six of the units were rented and have been returned to their owners, and it intends to sell some of its units to pay off debts.

Margen has been operating at just 30% of its 10,000 head daily slaughter capacity.

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