BRF S.A. (BRFS): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a true global food giant, BRF S.A., especially now after the strategic September 2025 merger with Marfrig created a powerhouse, and you want to see how they actually make money. Honestly, looking at their engine, it's all about massive scale-they manage an integrated chain serving over 330,000 points of sale domestically while shipping to 150+ countries, all while wielding iconic brands like Sadia and Perdigão. What really catches my eye as an analyst is the recent financial discipline: they managed to cut Net Debt down to BRL 4.7 billion by Q2 2025, partly fueled by operational wins like the BRL 208 million captured in Q2 2025 alone, balancing a near 50/50 split between their 52.6% domestic and 47.4% international revenue streams. Dive below to see the full nine-block breakdown of the resources, partnerships, and costs driving this complex global operation.

BRF S.A. (BRFS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power BRF S.A. (BRFS) now, especially after the massive September 2025 integration. These partnerships are what keep the supply chain moving and the global footprint expanding. Honestly, the scale of these alliances is what separates the major players from everyone else in this sector.

Merger and Corporate Alliances

The biggest partnership move was the strategic merger with Marfrig Global Foods, which officially created MBRF Global Foods Company on September 22, 2025, with shares starting to trade as MBRF3 on September 23. This wasn't just a handshake; it came with concrete financial expectations. The combined entity anticipates significant efficiencies, including a fiscal optimization valued at about 3 billion reais (or $554.4 million) based on net present value, alongside an annual expense reduction estimated at 320 million reais. To put the scale in perspective, the combined 2024 revenue was reported at $36.2 billion, though still less than JBS's 2024 revenue of $77 billion.

The focus on the Halal market is cemented through a key joint venture in Saudi Arabia. BRF Arabia, which is 70% owned by BRF and 30% by HPDC (a subsidiary of the Public Investment Fund, PIF), agreed to acquire a 26% stake in Addoha Poultry Co.. The total value of that transaction was SAR 316.2 million (USD 84.3 million), with SAR 216.2 million (USD 57.6 million) injected directly into Addoha. Furthermore, BRF Arabia is jointly investing $160 million with PIF/HPDC to build a processed foods plant in Jeddah, with BRF contributing 70% of the funds.

Operational Network and Distribution Alliances

The backbone of BRF S.A. (BRFS) production relies heavily on its network of contract farmers. While the prompt specifies a total network of approximately 12,500 integrated contract farmers globally, the 2024 Integrated Report noted approximately 9,000 integrated producers specifically in Brazil. This vast network is critical for raw material supply.

For getting product to market, the company partners with extensive global food distribution networks. As of late 2024, BRF was serving over 440,000 customers worldwide. The company's reach spans operations in 117 countries in 2024, with products sold in over 150 countries across five continents.

Here's a quick look at the scale of the operations supported by these key relationships:

Technology and Digital Transformation Alliances

Digital transformation is heavily reliant on technology partnerships, particularly with SAP. The implementation of SAP Integrated Business Planning (SAP IBP) has been a major focus. This system supports over 400 planners and has accelerated planning processes by 33 percent. The goal is to improve forecast accuracy and optimize inventory using AI and advanced analytics, which is defintely a critical partnership for efficiency.

The use of these advanced systems enables several key operational improvements:

• Improved forecast accuracy by 33 percent.
• Accelerated planning processes by 33 percent.
• Support for more than 400 planners using SAP IBP.
• Integration with SAP Business AI and the AI copilot Joule.
• Complementary use of SAP Ariba for procurement.

BRF S.A. (BRFS) - Canvas Business Model: Key Activities

You're looking at the core engine of BRF S.A. as of late 2025, which is all about controlling the entire journey of their protein products. This isn't just about cooking and shipping; it's about managing a massive, complex system.

Managing the fully integrated protein value chain from genetics to final sale is central. This activity involves overseeing a vast network that starts with genetics and ends with the consumer. BRF S.A. works with approximately 9 thousand integrated producers in Brazil alone, all shareholders in that chain. The scale of manufacturing is supported by owning about 50 factories spread across eight countries, including Brazil, Argentina, Turkey, and the UAE.

The company's reach is truly global, making Global export and distribution management across 150+ countries a critical function. BRF S.A.'s products reach customers in over 150 countries across five continents. This global logistics backbone was tested and proven resilient, securing 198 new export licenses since 2022 to effectively navigate trade restrictions like those from the avian flu outbreak. The international segment maintained healthy margins, achieving an EBITDA margin of 17.3% in the period.

A major ongoing activity is the Operational efficiency drive via the BRF Plus program. This program, focused on continuous process improvement, delivered significant financial results, capturing BRL 208 million in gains just in the second quarter of 2025. This focus on efficiency contributed to a record first half of the year, with the company achieving its lowest-ever leverage of 0.43 times LTM EBITDA.

The physical work involves the Manufacturing and processing of fresh, frozen, and value-added food products. This covers everything from raw meat to convenient meals. In the domestic market, BRF S.A. served over 330,000 points of sale in the second quarter of 2025, showing the breadth of their distribution network for these varied product types.

Finally, the business must constantly focus on Continuous innovation in product portfolio, especially in processed and ready-to-eat categories. A concrete example of this is the launch in July 2025 of the Sadia Fresh line of chilled poultry produced in Saudi Arabia, strengthening their presence in the halal market. The growth in higher-margin categories is evident in the Brazilian market, where processed-product volumes increased during the quarter.

Here's a quick look at some key financial outputs from these activities in the first half of 2025:

The operational structure supports this output through several key functions:

• Managing the integration with approximately 9 thousand Brazilian producers.
• Operating about 50 factories across eight countries.
• Securing 198 new export licenses since 2022 to maintain market access.
• Launching new product lines, such as Sadia Fresh in Saudi Arabia in July 2025.
• Achieving the lowest leverage in history at 0.43x LTM EBITDA.

Also, following the September 2025 merger, a key activity now includes integrating operations with Marfrig to form the MBRF Global Foods Company. Finance: draft 13-week cash view by Friday.

BRF S.A. (BRFS) - Canvas Business Model: Key Resources

You're looking at the core assets that power BRF S.A.'s global operation as of late 2025, especially following the September merger that created MBRF Global Foods Company. These resources are what allow the company to compete across continents and protein types.

The company's brand equity is immense, built on the foundation of its iconic, globally recognized food brands like Sadia and Perdigão. These names carry significant consumer trust, especially in key international markets.

BRF S.A. maintains an extensive global industrial footprint. The company has over 35 production units on four continents, underpinning its ability to serve diverse markets efficiently. Post-merger, the combined entity operates in 117 countries.

Financial discipline has resulted in strong financial health. Net Debt was reduced to BRL 4.7 billion in Q2 2025, representing the lowest leverage in the company's history at that point.

A specialized asset is the Halal production and distribution platform, OneFoods, which positions the company as a world leader in Halal chicken protein.

The scale of the operation is supported by a large, skilled workforce of over 100,000 employees worldwide. The latest reported figure for BRF Global in 2025 was 100,747 employees.

Here's a quick look at some of the hard numbers underpinning these resources as of the latest reported periods in 2025:

The company also possesses significant intellectual and operational capital, including:

• Proprietary technology for integrated poultry and pork chains.
• 198 new export licenses obtained since 2022.
• A specialized Halal platform, OneFoods, headquartered in Dubai.
• Distribution network serving over 340,000 points of sale in the domestic market.
• A pipeline of strategic investments, such as a new plant in Jeddah, Saudi Arabia, requiring US$ 160 million.

BRF S.A. (BRFS) - Canvas Business Model: Value Propositions

You're looking at the core value BRF S.A. (BRFS) delivers to its customers, which is built on scale, quality assurance, and strategic market focus. This isn't just about selling chicken; it's about delivering certified, safe food across a massive global footprint.

High-quality, safe food products backed by significant quality control investment

BRF S.A. positions its products as high-quality and safe, a promise underpinned by substantial capital allocation toward operational excellence and compliance. The company's focus on quality is evident in its planned capital expenditures (capex). For 2025, investments are forecast to increase to about R$3.5 billion per year, up from a forecast of approximately R$2.4 billion in 2024. This investment supports strategic projects and helps maintain rigorous food safety and traceability standards across its operations, which span 6 continents as of October 2025.

Global scale and low-cost base, offering competitive pricing in export markets

The sheer size of BRF S.A. allows it to compete effectively on price globally. As of 2024, the company expanded its international presence, increasing operations in 117 countries. The efficiency drive, known as BRF+ 2.0, captured an additional R$1.5 billion in the year 2024 alone. This operational discipline contributes to a competitive cost structure. For context on scale, the Trailing Twelve Months (TTM) revenue as of June 30, 2025, reached 63.95B BRL. The company reported a record EBITDA of R$10.5 billion in 2024.

Halal market specialization, meeting strict religious and quality standards

BRF S.A. has made a clear commitment to the Halal segment, which is a high-growth area. The global halal food market is projected to see a 6.6% annual increase between 2022 and 2027. BRF S.A. has actively invested to solidify this position, for example, by completing the purchase of a 26% stake in Saudi Arabia's Addoha Poultry Company for $84.3 million in January 2025. Furthermore, the company is building a $160 million processed-products factory in Jeddah, targeting a 40,000-tonne annual capacity by mid-2026. In the key market of Turkey, BRF maintained market leadership with a 26% market share by the end of 2024. Brazil itself accounts for over 50% of the South American Halal Food & Beverages Market share.

Diversified portfolio of fresh, frozen, and processed protein for various consumer needs

The value proposition includes offering a wide array of protein solutions, moving beyond basic commodities. In 2024, management indicated a goal to derive 70% of revenue from value-added products over a decade, up from 50% at that time. This focus on processed and value-added items is a strategic move to capture higher margins. For instance, the pet food division, established via acquisitions, captured roughly 10% of the domestic market share in Brazil. The company's Q1 2025 net revenue was R$15.512 billion, showing growth across its segments.

Here's a quick look at some key financial and operational metrics that support these value propositions as of late 2025:

Commitment to sustainability, with clear 2025 ESG targets like reducing water consumption

BRF S.A. integrates Environmental, Social, and Governance (ESG) commitments into its value offering, appealing to increasingly conscious consumers and partners. A key near-term goal was the commitment to reduce BRF's water consumption indicator by 13% by 2025. Additionally, the company committed to having 100% recyclable, reusable, or biodegradable packaging by 2025. The company also aims for 100% certification of plants in Animal Welfare by 2025 and to only use cage-free chicken eggs in the industrial food process globally by 2025.

These sustainability efforts translate into tangible operational standards:

• Reduce water consumption indicator by 13% by 2025.
• 100% recyclable, reusable, or biodegradable packaging by 2025.
• Use environmental enrichment in 100% of poultry integration by 2025.
• Certify 100% of plants in Animal Welfare by 2025.

BRF S.A. (BRFS) - Canvas Business Model: Customer Relationships

You're looking at how BRF S.A. maintains its connection with the market, which is crucial given its scale across protein and pet food sectors. The relationships are managed through several distinct channels, each with its own metrics.

The domestic reach is supported by a large-scale direct sales effort. While the exact number of points of sale in Brazil isn't explicitly stated for late 2025, BRF S.A. serves a base of over 300 thousand Customers worldwide. The company's pet food division, which includes GranPlus and Biofresh, saw its active client base grow by 8% year-over-year in Q2 2025.

BRF S.A. employs a structured approach to gauge customer satisfaction through its Proactive Customer Experience Program. This program monitors Net Promoter Score (NPS) across all direct touchpoints with clients and consumers. In 2024, the company achieved a 40% increase in NPS across key channels, with some customer journeys reaching the excellence zone with scores above 75.

For international growth, Key Account Management targets large global partners. The company's sales in key international regions, such as the Middle East and Asia, have seen a robust growth of nearly 20%. This expansion is supported by the company's overall global footprint, serving customers in over 120 Countries.

Digital engagement is a focus for the pet food segment. The GranPlus and Biofresh brands utilize digital communication campaigns to connect with consumers. This marketing effort supports a division that reported strong performance and client base expansion in mid-2025.

The supply chain foundation relies on strong ties with its production partners. BRF S.A. maintains long-term, trust-based relationships with its integrated producers, numbering approximately 10 thousand.

Here's a quick look at some of the key operational and relationship metrics as of the latest available data:

The company also focuses on internal relationship alignment, having integrated customer service workflows globally, providing visibility across the complaint cycle for its 16,000 direct clients in Turkey alone.

You're seeing a company that uses specific metrics to manage its vast network. Finance: draft 13-week cash view by Friday.

BRF S.A. (BRFS) - Canvas Business Model: Channels

You're looking at how BRF S.A. gets its massive portfolio of proteins and processed foods from its industrial units to the end consumer, and honestly, the scale of this operation is what sets it apart.

The domestic Brazilian market remains the bedrock, relying on an extensive direct sales and distribution network. You can see the sheer reach in the latest figures; through the second quarter of 2025, BRF S.A. served over 330,000 points of sale in Brazil, achieving its highest Q2 sales volume ever there. This network supports both the retail and food service segments you mentioned.

For retail channels, this means their products-think Sadia and Perdigão brands-are stocked across supermarkets, hypermarkets, and local grocery stores nationwide. The focus on processed products in Brazil has been key, with volumes growing, supported by strong price adherence in the domestic market.

The food service channels, covering restaurants, hotels, and institutional clients, are served through this same infrastructure, with management noting that the market accommodated price adjustments in the portfolio, which is crucial for consistent channel flow.

Globally, BRF S.A. maintains a powerful presence, with products sold in over 150 countries across five continents. This global reach is actively being fortified; BRF S.A. leveraged 198 new export licenses since 2022, a strategic move that helped mitigate the impact of avian flu export restrictions earlier in 2025. While the company operated in 117 countries in 2024, the focus in mid-2025 was on the resumption of shipments to extremely important markets like China and Europe following the lifting of bird flu-related bans.

The specialized distribution for the Halal market, managed through its subsidiary OneFoods, is a major strategic pillar. OneFoods, headquartered in Dubai, UAE, operates an integrated chain with 10 processing plants (eight in Brazil, one in the UAE, and one in Malaysia). In key Middle Eastern countries where it runs direct distribution-namely Kuwait, Oman, Qatar, Saudi Arabia, and the UAE-OneFoods estimates its market share at around 45 percent. To further solidify this channel, BRF S.A. completed the purchase of a 26% stake in Saudi Arabia's Addoha Poultry Company for $84.3 million on January 14, 2025, which included a $57.6 million investment to boost local production capacity. This positions BRF S.A. to capitalize on the global halal food market, which is projected to grow at a CAGR of 9.33% from 2025 to 2033.

Here's a quick snapshot of the channel metrics we're tracking as of late 2025:

The company's overall financial performance supports this channel strategy; for instance, net revenue for the first half of 2025 totaled BRL 15.4 billion, showing that the distribution machinery is moving significant volume.

Finance: draft 13-week cash view by Friday.

BRF S.A. (BRFS) - Canvas Business Model: Customer Segments

BRF S.A. serves a diverse set of customer groups, with revenue generation heavily weighted toward its core domestic and international protein sales, supplemented by specialized segments like pet food.

The primary revenue split for the second quarter of 2025 was:

The domestic Brazil segment showed strong operational results, reporting an EBITDA of R$1.3 billion with a margin of 16.4% in Q2 2025. The total Net Revenue for BRF S.A. in Q2 2025 reached R$15.4 billion.

Specialized and growing customer segments include:

• Halal consumers in the Middle East and Asia: This is a high-growth, specialized segment. BRF S.A. recorded a 1.4 pp market share gain in GCC processed products, driven by the breaded product category, and launched the Sadia Fresh chilled chicken line in Saudi Arabia.
• Pet owners, served by the Pet Food division: This division expanded its active client base by 8% in Q2 2025. BRF Pet holds roughly 10% of the domestic Brazilian pet food market share.
• Food service and industrial clients requiring bulk protein and ingredients: This group is served through the volume growth in the processed products category within the domestic market.

The company's overall strategy emphasizes market diversification, which is essential for mitigating risks like avian influenza export restrictions.

BRF S.A. (BRFS) - Canvas Business Model: Cost Structure

The Cost Structure for BRF S.A. (BRFS) is heavily influenced by commodity prices, significant capital investment plans, and the costs associated with a large, global workforce and complex logistics network.

Raw material costs, particularly for feed inputs, present a near-term pressure point. While corn and soybean prices saw significant declines in 2024, analysts expect input prices to increase in 2025 for BRF S.A. (BRFS). This expected rise in commodity costs is a key factor contributing to the forecast for EBITDA margins to moderate to close to 14% in 2025, down from an expected 17.1% in 2024. The domestic corn market in Brazil has seen low stocks and strong demand, though the 2025/26 MY production is forecast to increase to 130,000 thousand metric tons (New Post estimate). The robust Brazilian safrinha corn crop for 2024/25 was estimated at 108.2 million tonnes.

Capital Expenditure (Capex) is set to increase substantially to fund strategic projects. The forecast for investments is set to rise to about R$3.5 billion per year for 2025 and 2026, up from the forecast of about R$2.4 billion in 2024. This high level of investment is expected while the company still forecasts Free Operating Cash Flow (FOCF) of R$3.0 billion-R$4.0 billion per year in 2025 and 2026.

Labor and personnel costs reflect the scale of BRF S.A. (BRFS) operations and the tight Brazilian labor market. As of 2025, BRF Global has 100,747 total employees, which aligns with the general statement of having over 100 thousand employees. The low unemployment trend in Brazil, hitting a record low of 5.8% at the end of Q1 2025, suggests upward pressure on wages and personnel expenditure. For context on the broader Brazilian labor market in late 2025, the Employed Persons figure was 102.56 Million as of October 2025, with the average national wage at 3507.00 BRL/Month in September 2025.

Logistics and distribution costs are inherent to serving a global footprint. BRF S.A. (BRFS) has expanded its export reach, gaining 84 new export certifications across various continents in 2024, and its products are sold in over 150 countries. The company's complex supply chain supports an export volume of 1.2 million tons of protein products, operating in over 70 countries.

Operational costs are tied to the extensive manufacturing base. The company runs a significant number of industrial units globally. While one source indicates approximately 21 industrial units in Brazil, another states the company owns about 50 factories in eight countries, which certainly meets the requirement of running over 35 units. The operational breakdown across processing types suggests a high fixed cost base:

The cost structure also includes specific operational expenses related to these facilities. For example, in 2024, BRF captured R$1.5 billion from its BRF+ 2.0 efficiency plan, indicating the magnitude of costs being managed. The company's activities include the production of poultry, pork, processed foods, pet food, and ingredients, each carrying its own input and processing overhead.

• Feed input price expectation for 2025: Increase
• Forecasted 2025 EBITDA Margin: Close to 14%
• 2024 Capex: R$2.4 billion
• 2024 EBITDA: R$10.3 billion
• 2024 Net Revenue: R$ 61.4 billion

Finance: draft 13-week cash view by Friday.

BRF S.A. (BRFS) - Canvas Business Model: Revenue Streams

You're looking at the core ways BRF S.A. brings in money as of late 2025, which is heavily influenced by its massive scale in protein production and its recent strategic merger activity.

The company reported a record first half for the year. Total Net Revenue for the first half of 2025 was approximately R$30.9 billion. This was the best half-year result in the company's history.

The revenue streams are fundamentally split between the domestic Brazilian market and international operations, with a growing contribution from specialized segments.

• Sales of processed food products (e.g., cold cuts, ready-to-eat meals) in the domestic market. The company achieved its highest Q2 sales volume ever in Brazil, serving over 330,000 points of sale, with growth particularly in processed products.
• Sales of in natura (fresh and frozen) poultry and pork to international markets. The international segment maintained healthy margins despite export challenges.
• Sales from the Pet Food and Ingredients business segments. The pet food division demonstrated strong performance in the second quarter, expanding its active client base by 8% year-over-year. The Ingredients segment reported an EBITDA of R$52 million for the quarter.
• International sales, which accounted for 47.4% of Q2 2025 Net Revenue.

For a deeper dive into the composition of the revenue streams for the second quarter of 2025, which totaled approximately R$15.4 billion, here is the breakdown by product type:

The company's overall strategy focuses on adding value locally, as seen by the construction of a new processed food plant in Saudi Arabia and the acquisition of a processed food plant in China, reinforcing its global expansion.