Brazil is providing welcome financial support intended to help its ailing meat processing industry. The Brazilian government's National Monetary Council last week approved a $4.6 billion line of credit for that country's meat processing companies, according to Reuters.
The credit originates from the BNDES development bank and will have a favorable subsidized interest rate of 11.25 percent.
Brazil's meat industry has been under increasing financial pressure from the deepening global crisis.
Stock prices of Brazilian meat companies soared on the news. Shares of JBS ended the day up 6.8 percent, Sadia closed up 3.7 percent, and Marfrig was up 8.3 percent at close of trading last Thursday.
"It will help the meat packer sector fundamentally, but also the pork, poultry and beef producers," according to Brazil’s Finance Minister Guido Mantega.