The integration with production systems

Extract

[...] In addition, the focus is horizontal mergers, which result in higher concentration by market segment. In Brazil, the process of mergers and acquisitions of companies has increased exponentially since the early 90s, corresponding to a process of internationalization of the property and mainly of business management, with emphasis on the agri-food sector. Considering the various sectors of the economy, the number of mergers and acquisitions increased more than sixfold between 1992 and 1997, declining slightly in 1998 the food industry, beverage and tobacco led the ranking every year, accounting for 13% of the total. [...]

[...] The process of mergers and acquisitions recently increased the degree of participation of transnational corporations also in the meat industry and even in parts of the production chain in which the capital was typically national, such as artificial insemination. Brazil remains classified as a country with huge market potential for food consumption, mainly due to the average levels of per capita consumption, far below those found in developed countries. Redistributive efforts are a necessary growth in the food sector, proven experience both in the first moments of the Cruzado Plan, established in 1986 as the first year of the Real Plan, implemented in 1994. [...]

[...] Some estimates indicate that in 1970, were launched in the US market 800 new products, and at the end of the 80s, more than news were available there. This process is only possible when there are information systems capable of capturing consumer trends, combining brand, sales efforts and efficiency in distribution as central elements of competitive strategy. The growing use of quality standards and health requirement, determined by different countries (and harmonized in economic blocks, as European Unit, NAFTA and the Southern Cone countries), act as non-tariff barriers. [...]

[...] Trends in International Agrifood Sector The segment of finished goods of the agrifood sector is increasingly important and diverse. Participation in value at the end of the stages of processing and distribution product, in relation to agricultural production, has been increasing steadily over the past 20 years. For certain population's income segments, the power of participation in the total expenditure is very small, ranging from about 10% to 13% in developed countries. Already in developing countries, the average expenditure reaches almost reaching much higher levels in the lower income classes, which also have their limited spending capacity due to the significant share of basic items such as transport (about of income in large cities) and clothing. [...]

[...] In the second half of that decade, developed the line of dry goods in São Paulo (cake mix), new lines of embedded and fresh products (frozen chicken carcass and cold) in Concord, products processed in small portions, which could be built kept at room temperature (bologna), new built (sausages) and restructured products (kebab, meatballs, hamburger and steak) in Sao Paulo. In the 70's diversified production derived from pigs, birds of special courts derivatives. From the 80, Sadia implemented the possibilities for differentiation of its products thanks to new equipment, packaging materials, slaughter techniques and inlay, conservation techniques, new chemical compounds that act on the production and conservation of products and changes in consumption habits driven by new standards of health and nutrition. [...]