Minerva Foods, one of Brazil’s largest meat processors, has assessed the revenue impact stemming from President Donald Trump’s tariffs.
On August 6, Trump enacted a promise he made in July by raising import tariffs on Brazilian goods from 10% to 50%. In response, President Luiz Inacio Lula da Silva has sought discussions with the World Trade Organization.
While certain Brazilian products are exempt from these tariffs, meat, poultry, and coffee are not.
On the same day that the new tariffs took effect, Minerva Foods released its fiscal results for the second quarter of 2025.
The company reported that the anticipated revenue impact would amount to around 5% of its net revenue, translating to approximately 1.71 billion reais ($314.6 million) based on the full-year 2024 figures.
In 2024, Minerva Foods generated a revenue of 34.1 billion reais.
“Based on the results from the past year, the company’s consolidated exposure to the US market represented about 16% of overall revenue, with Brazil accounting for roughly 30% of that exposure,” the company noted on Wednesday.
“As a result, Brazilian exports subject to the new tariff policy could see a maximum potential impact of about 5% on net revenue.”
Minerva Foods also indicated that its geographical diversification grants it some leverage in meat supply to the US.
“The company engages with the US market through operations in Brazil, Argentina, Paraguay, Uruguay, and Australia.
“Notably, our geographic diversification strategy allows for access to the US market through our operations in Argentina, Paraguay, Uruguay, and Australia. This positioning maximizes our ability to navigate market fluctuations, mitigate risks, and seize opportunities as they arise.”
In an interview with Reuters, Lula stated that he sees no opportunity for direct talks with Trump at this time, as engaging would be “a humiliation.”
Furthermore, Lula characterized US-Brazil relations as being at a 200-year low after Trump linked the new tariffs to demands for halting the trial against right-wing former President Jair Bolsonaro, who is facing allegations related to election interference, reported Reuters.
Meanwhile, Minerva Foods announced that it realized a revenue of 13.9 billion reais in the second quarter of fiscal 2025, reflecting an 81.6% increase compared to the previous year.
The company confirmed that it finalized the acquisition in October of assets located in Brazil, Argentina, and Chile from its competitor, Marfrig Global Foods.
This transaction encompassed 11 facilities and a distribution center in Brazil, alongside a plant in Argentina and a factory in Chile, for a total value of 7.5 billion reais.
When the asset deal with Marfrig was initially proposed in 2023, it also included three plants in Uruguay.
However, this portion of the transaction was later blocked by Uruguay’s competition regulator, La Comisión de Promoción y Defensa de la Competencia (Coprodec), in May of the previous year.
In February of this year, Minerva Foods submitted a revised proposal to the antitrust authorities, including a provision to divest one factory post-transaction completion.
According to the second-quarter results presentation, Minerva Foods is still awaiting feedback from Coprodec.
Additionally, the latest results revealed that Minerva Foods’ EBITDA nearly doubled to 1.3 billion reais from 744.6 million reais a year prior, although the margin slightly declined to 9.4% from 9.7%.
Significantly, net income surged to 458.3 million reais, up from 95.4 million reais, driven by an almost 40% increase in meat volumes.
“Minerva Foods’ extensive international presence remains a cornerstone of our performance. In 2Q-25, approximately 60% of consolidated gross revenue was derived from international markets, highlighting our export-driven strategy and the competitiveness of our South American assets,” the company stated.
