Neogen creates new Brazilian subsidiary
October 08, 2009
by Bryan Salvage
LANSING, MICH. — Neogen Corporation, a leading company in developing and marketing food and animal safety products, has formed a new subsidiary in Brazil, Neogen do Brasil (Neogen of Brazil). Based near São Paulo, the new company will distribute Neogen's food-safety products throughout Brazil.
Neogen do Brasil was created to speed-up the success of Neogen products in Brazil, a country that has evolved into one of the world's largest food producers and exporters. Brazil is the global leader in exporting a number of food commodities, including beef and poultry.
Brazil-based food producers have exerted a great deal of influence outside of that country, including the September acquisition of the majority stake in the second-largest poultry producer in the U.S., Pilgrim's Pride, by Brazil-based JBS S.A.
"Now with the fifth-largest economy in the world, one of only a few countries likely to show an increase in its gross domestic product for 2009 and a major food producer and exporter, Brazil has become a very important country to Neogen's future success," said Lon Bohannon, Neogen's president and chief operating officer.
Approximately 41% of Neogen's revenue came from sources outside of the U.S. in its most recently completed fiscal quarter (Aug. 31). Neogen's new company will start business with an annual revenue base of approximately $1 million.
Josue Furtado Fihlo, a Brazilian food-safety expert with many years of experience distributing Neogen's products, will manage the new company. Flavio Mello, who has extensive experience with Neogen's product lines, will serve as sales manager.