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The history of BRF: from the origins of Sadia and Perdigão in SC, through the merger, financial crises, Carne Fraca operation and the recent turnaround under the command of Marfrig.
Financial scandals, boardroom disputes and even expired meat. All of these elements are part of the history of BRF. The Brazilian food giant was born from the merger of rivals Sadia and Perdigão.
Its trajectory has had twists and turns worthy of a TV series. It began in the interior of Santa Catarina and became a global conglomerate, marked by crises and recoveries.
Sadia and Perdigão: the Santa Catarina roots of the future BRF
the origin of BRF is located in the interior of Santa Catarina. It started with two families of Italian immigrants. Perdigão was created in 1934, in Videira, by the Brandalise and Ponzoni families. Initially focused on meat swine. Ten years later, in 1944, Attilio Fontana founded Sadia in Concórdia.
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Sadia focused on exports and technology from the beginning. The two companies grew and became major rivals in supermarkets. They launched competing products, such as Peru Temperado (Sadia) and Chester (Perdigão).
Risky bet and forced merger: the birth of BRF
In the late 2000s, Sadia faced a serious crisis. The company bet heavily on the dollar's decline in the foreign exchange market. The global crisis of 2008 came along, and the dollar soared. Sadia lost R$1,2 billion in one quarter on foreign exchange derivatives. The situation became unsustainable, with directors leaving.
The only way out was to merge with rival Perdigão. In 2009, Perdigão incorporated Sadia. Thus was born Brasil Foods, which was later renamed BRF. The merger was only fully approved by CADE (antitrust agency) in 2013, with a requirement to sell assets.
Abilio Diniz in Ccmando: the (frustrated) owner of the 'Ambev of food'
In 2013, Abilio Diniz, formerly of Pão de Açúcar, assumed influence in BRF together with the management company Tarpon. The objective was to transform the company into the “Ambev of food”. The management focused on cutting costs and seeking efficiency. In the process, many experienced executives from Sadia and Perdigão were fired.
The company lost important technical knowledge. There were strategic errors, such as wrong bets on grain prices (2015). Attempts to reposition the Sadia (premium) and Perdigão (popular) brands did not work well. In 2016, BRF recorded its first net loss since the merger.
The scandal that shook BRF
The problems of BRF worsened by police scandals. In March 2017, Operation Weak Meat investigated a corruption scheme in meatpacking plants. BRF was cited for alleged irregularities, including the use of expired food. In 2018, Operation Cheat directly targeted BRF.
The accusation was of falsifying laboratory tests between 2012 and 2015 to hide quality problems. The impact on the company's image and finances was devastating. Shares plummeted and the company accumulated losses of R$1,1 billion in 2017. BRF denied the allegations and implemented compliance measures.
Marfrig takes control: Marcos Molina and the new era of BRF
In the midst of the crisis, Abilio Diniz left BRF in 2021. That same year, Marcos Molina, Marfrig's controller, began buying shares in BRF. In 2022, Marfrig became the largest shareholder, with 33,25%. Molina took over as chairman of the board of directors, bringing his team.
Representatives of the founding families and pension funds lost influence. In December 2023, Marfrig increased its stake to 50,6%. Rumors of a full merger between BRF and Marfrig resurfaced, although not officially confirmed.
Recovery and new directions
Under new management, led by CEO Miguel Gularte and Molina's board, the BRF underwent major restructuring. Financial results improved significantly in 2024. The company recorded record cash generation (R$6,5 billion) and profit (R$1,1 billion in the 2nd quarter of 2024), in addition to the lowest leverage in nine years.
A BRF also made international movements (Saudi Arabia, China). The current strategic focus is on processed foods (nuggets, lasagnas, etc.), which have a higher margin. The company has also invested again in the pet food segment in 2025. With a robust cash flow, BRF entered 2025 leaner and more focused.
If managing a company were easy, there wouldn't be so many bankruptcies in the world. A good manager is, above all, a great strategist. He has to foresee in advance and turn the game in his favor, even before problems arise, avoiding crises in his administration.