While analysts are buzzing about BRF's impressive Q1 2024 results, fixated on rising export prices and expanding licenses, a subtle yet profound shift is occurring within the company's operational core. It's a shift so significant, it could redefine the very structure of BRF's profitability, leaving competitors scrambling to catch up. And the secret weapon? Ironically, it's dead chickens.

More precisely, it's the dramatic reduction in chicken mortality rates achieved through BRF's BRF+ efficiency program. This seemingly minor detail holds the key to unlocking substantial and sustainable gains across the entire production chain, paving the way for a profitability revolution.

To grasp the magnitude of this shift, we need to delve into the numbers. BRF boasts a massive production capacity, housing a staggering 1.6 billion heads of poultry and pork. Each percentage point improvement in yield, whether through reduced mortality or increased processing efficiency, translates into a volume equivalent to opening a new plant.

Consider the last quarter of 2023, where BRF achieved a yield increase akin to adding a new plant to its already vast network. This translates into a production surge without any significant capital expenditure, effectively leveraging existing infrastructure and amplifying profitability.

But the impact extends far beyond mere production volume. Reduced mortality means lower input costs. Fewer chickens lost translates into lower feed consumption, a major expense for BRF. This cost advantage then ripples through the entire production chain, resulting in lower cost of goods sold and ultimately, higher margins.

Moreover, the BRF+ program is not a one-off initiative, but a deeply ingrained cultural shift. It's a continuous pursuit of operational excellence, with teams across all geographies meticulously tracking and improving upon key performance indicators. This constant drive for efficiency creates a dynamic and adaptable system, allowing BRF to optimize its operations in a rapidly evolving market.

The implications for BRF's future are profound. With an established footprint, strong brands, and a relentless focus on cost optimization, the company is poised to dominate the market, both domestically and internationally. As grain costs continue their downward trend, BRF's cost advantage will only amplify, further bolstering its profitability.

And while analysts focus on external factors like rising prices and new licenses, BRF is quietly building a fortress of operational efficiency, a fortress whose foundation is built upon a seemingly insignificant detail: fewer dead chickens. This, combined with its strategic diversification and focus on added-value products, positions BRF to achieve not just short-term gains, but sustained, long-term profitability dominance.

BRF+ Program's Impact on Key Metrics

The chart below illustrates the improvement in key areas driven by the BRF+ program. Note the significant reduction in chicken mortality and the improvement in factory output.

BRF's Key Performance Indicators:

BRF+ captures: Totaled BRL 2.2 billion in 2023, excluding FIFO effects. (Source: BRF Q4 2023 Earnings Transcript)

Inventory turnover: Reached 75 days, the lowest historical level. (Source: BRF Q4 2023 Earnings Transcript)

New export licenses: Secured 66 in 2023, with 25 more in Q1 2024. (Source: BRF Q1 2024 Earnings Transcript)

These figures, combined with the subtle shift in mortality rates, paint a picture of a company undergoing a profound transformation, a transformation that could rewrite the rules of the game in the global poultry market.

"Fun Fact: Did you know that BRF's Sadia brand is the market leader in the GCC region's Halal market, capturing a significant share of the processed food segment? This strategic positioning in a key growth market underscores BRF's global ambitions."

The BRF+ program is not just about reducing costs; it's about building a culture of excellence and resilience, a culture that will propel the company to new heights of profitability and market dominance.