Standard&Poor's Ratings Services' ratings on Brazil-based meat processor Marfrig Alimentos S.A. reflect the company's aggressive and acquisitive growth strategy, the risks inherent to the animal protein industry, the volatile export demand and prices for fresh meat, and the company's risks in integrating the sizable assets it has acquired in the past few years. Partly offsetting these risks are the company's strong presence in the markets in which it operates; the increasing participation of consumer branded products, usually having higher aggregate value, in its revenues; its large-scale production; and the company's increasing geographic and portfolio diversification. We see Marfrig's business profile as fair. Its well-built distribution channel, world-class cost structure, and economies of scale help diminish the volatility of
