SAO PAULO, Dec 8 (Reuters) - Brazilian chicken and poultry processor BRF SA said immense cost pressure will not prevent the company from reaching goals like posting net revenue of 65 billion reais ($11.65 billion) by 2024.
BRF and other food processors faced unprecedented inflationary pressure on costs this year, when corn, soymeal and packaging prices more than doubled, CEO Lorival Luz said during a company presentation on Wednesday.
Although higher input prices squeezed profit margins, selling more processed food products in Brazil and in export markets such as the Middle East, which have higher aggregate value, will be key to increase revenues and restore margins.
"The team knows how to operate in the face of adversities," Luz said.
Calling the current operating environment "hostile," he said the company would explore "avenues of growth" that include investing to produce cultured meats and abandoning a business model based on sale of commoditized products such as fresh chicken.
Nevertheless BRF, which accounts for 9% of global chicken exports, said it received 26 new meat export permits this year, allowing it to remain one of the biggest suppliers to lucrative markets like the Middle East and China.
BRF said it is also committed to expand production capacity to produce pet food in Brazil, as the company aims to be the second-largest player in this segment by 2025. ($1 = 5.5778 reais) (Reporting by Ana Mano; Editing by Andrea Ricci)