Brazil Meat Giant MBRF Bets on Collagen as Diet Drugs Boom

BRAZIL · ECONOMY

MBRF, one of Brazil’s largest meat companies, is investing R$500 million (US$99 million) in collagen and gelatin, betting that the global boom in weight-loss drugs will keep driving demand for high-protein products.

What MBRF is investing in

The company, formed by the merger of meat giants Marfrig and BRF, is putting R$500 million (US$99 million), about US$88 million, into collagen and gelatin. The plan combines its earlier purchase of the producer Gelprime with a major expansion of its plant.

MBRF took control of Gelprime, in the southern state of Parana, in a deal completed late last year. It now plans to more than triple the plant’s capacity over five years, to around 30,000 tonnes a year.

The company says that would make the site one of the world’s largest to produce collagen and gelatin in a single complex. It can feed the plant with raw materials from its own meat operations.

Why the weight-loss boom helps

The bet is tied to the surge in weight-loss and diabetes drugs such as those based on semaglutide. As people use them, they are often advised to eat more protein to avoid losing muscle, lifting demand for products like collagen.

That adds to a longer-running shift toward higher-protein diets. For a meatpacker, the appeal is partly in the margins: industry estimates put profitability in these products well above that of traditional meat.

Rivals are moving in the same direction, with other large meat groups expanding their own collagen operations. The competition will test whether demand keeps pace with the new capacity coming online.

Frequently Asked Questions

What is MBRF investing in?

It is putting R$500 million (US$99 million), about US$88 million, into collagen and gelatin, expanding its Gelprime plant in Parana to roughly triple capacity to about 30,000 tonnes a year over five years.

Why collagen now?

Demand is rising as weight-loss and diabetes drugs lead users to eat more protein to preserve muscle, on top of a broader high-protein diet trend. The products also carry higher margins than traditional meat.

Who is MBRF?

It is one of Brazil’s largest food companies, formed by the merger of the meat groups Marfrig and BRF, the owner of brands such as Sadia and Perdigao.

Connected Coverage

The same boom drove a regulatory milestone, covered in our report on Brazil’s first local Ozempic rival. For more on the country’s exports, see our coverage of Brazil’s trade surplus.

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