Page 31 - Minerva Foods | Annual Report 2017
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Risk
MANAGEMENT102-11 | 102-15
The year 2017 was the year in which it was ev- ident on how vital risk management is to Min- erva’s strategy and how effective it has proven to be in making operational decisions, in light of new business opportunities. Instead of adopt- ing a formal risk management policy, the Com- pany adopted a transversal approach, through a series of internal mechanisms and procedures, with duties and tasks based on hierarchical competencies, aimed at monitoring, mitigating and controlling the main risk factors to which they are exposed.
This form of management allows for foresight of market facts and to anticipate its movements. One example of this was in the middle of 2017, when hardships faced by our largest competi- tor in the industry opened a gap for us to reac- tivate the Mirassol D’Oeste (MT) unit resulting in an increase of our capacity utilization of our installed equipment to approximately 75%, as
well as the acquisition of units in the Mercos- ul. The operations carried out were based on agility and confidence due to analyses done on market trends.
In the last five months of 2017, the Company reached a 22% participation in South Ameri- can exports, becoming the largest beef exporter on the continent. Acquisitions of the Mercos- ul units resulted in Geographic diversification making it possible to arbitrate production methods and strengthen resilience in relation to the seasonalities and volatility of the market. This strategy is associated with the growth in exports which represents a natural hedge in relation to sharp oscillations in the currency rates. Minerva Foods total gross revenue for the year was R$12,981.4 billion, an increase of 26.5% when compared to 2016.
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