By Roberto Samora
SAO PAULO, March 10 (Reuters) - Frigol expects to raise output by 60% in 2026 through deals with two slaughterhouses in Brazil's northern state of Rondonia, which will also expand its access to China and the U.S., the beef processor's CEO Luciano Pascon told Reuters.
The deals with DistriBoi and RioBeef, which together cover three Rondonia plants, are expected to lift Frigol's annual slaughter from about 650,000 head in 2025 to more than 1 million in 2026, Pascon said ahead of results
published on Tuesday.
Frigol will handle cattle procurement and product sales, while DistriBoi and RioBeef will carry out slaughtering and processing at their facilities.
Pascon said in the interview the deals were designed partly to preserve growth in exports to China, Brazil's largest beef buyer, despite restrictive quotas imposed by Beijing in 2026.
China accounts for nearly half of Brazil's beef exports and has applied an additional 55% tariff on shipments above a quota of just over 1 million metric tons for Brazilian processors.
"With these two plants approved for China, Frigol becomes the fourth-largest exporter to the Chinese market," Pascon said.
Pascon said the DistriBoi deal would also allow Frigol to export to the U.S., another important market for Brazilian beef.
Frigol would still trail MBRF, Brazil's third-largest beef company, by roughly 500,000 head per year, he said.
To support its growth, Frigol is relying in part on a 250-million-real ($48 million) agribusiness receivables certificate as well as other financing lines to fund working capital.
Pascon said Frigol expects to recoup the extra funds needed within 12 months. The company expects revenue to approach 7 billion reais in 2026, up from 4.3 billion reais in 2025.
($1 = 5.1771 reais)
(Reporting by Roberto Samora; Writing by Kylie Madry; Editing by Alexander Smith)
