In July 2009, the company bought Sadia after its smaller rival recorded more than 3 billion reais (US$1.7 billion) in derivative losses in 2008. Before approving the takeover, the antitrust arm of Brazil’s Finance Ministry recommended Cade require the foodmaker to sell assets or license one of its two main brands.
In late June, the ministry said the licensing of either the Sadia or Perdigao brand should be for a minimum of five years. The company plans to increase prices between 5% and 7% in the domestic market by the beginning of 2011 after a surge in the prices of corn and soybeans increased the cost of feeding its poultry.
Fay said Brasil Foods exports will probably increase 3% to 5% In 2011 due to demand from the Middle East, Africa and Latin America.