But again, a value that we do not believe is fair considering the pricing or the valuation of each one of those shares. So you shouldn’t expect any significant share or any significant sale of assets within the pipeline that we had mentioned before.
Miguel Gularte: Complementing Fabio’s answer, it’s important to know that BRF has been in the process of decreasing idleness and occupying production. And according to our budget of 2024, we plan for organic growth and considering the investments that have already been made. So you made a very, very appropriate question, and let me give you an answer to that. When you look at the yield aspect, BRF opened a new plant by means of yield, you have percentage and the slaughter of chicken, you have an additional 400 chicken being slaughtered only by improving processes. So considering the moment when we maximize our production, we can have a very, very expressive organic growth, which was the case.
Operator: Our next question comes from Lucas Ferreira with JP Morgan.
Lucas Ferreira: It’s a follow-up on the international market. You said that you have seen improvements in terms of prices in some regions. But it’s a question on Asia, Japan and China are a relevant market. And in the past few months, it seems that they haven’t been perfect. So well, in terms of prices, my question is, is there any visibility of price improvement? I understand the United States had some restrictions related to imports, related to avian flu in nearly 40 states. But at the time, the prices on to CSX are still very low, specifically about Japan and China do you have any prospects, any positive prospects in the field? And that’s my question.
Miguel Gularte: Lucas, thank you for your question. We analyze the market to Japan, and we understand that this market was in a recovering process in the second quarter. We had some cases of confirmation of this status. And when Brazil-when Japan came back to the market, the prices were lower. And we have to understand that inventory levels were lower and Japan needed to purchase more and Brazil is a good supplier. And now we resumed the market. And we can see that there’s going to be a price recovery, still not very significant recovery, but it’s materializing. The price is still lower than that, that we expect for 2024. But we are in the process of price recovery. On the other hand, it’s important to mention, am sorry I insist on that, when we talk about new destinations, new auctions and new licenses, we see as for Japan is a very specific case, when Japan close some states, BRF because it had a license to Korea.
We made a decision, a timely decision, and we managed very quickly to redirect the exports to that market without offsetting prices. And we doubt we’re incurring any losses in the sales process. On the other hand, we focused quite a lot on the execution of the international market plans. Remember that when we started talking about the efficiency program of BRF plus, BRF was a company that worked with an inventory without sales. And we no longer do that because of risk and also the working capital. And we started to bring to the port directly. Before that, it was shipped from deposit to another deposit and then consolidate the broad for sale. We suspended this and somehow it has allowed us to capture a market in a quicker way than thinking about the advantage of better prices.
So the product is not waiting for the market to lower prices. You are practically on line. If it is rising, you are there capturing this advantage. So we did very well when we applied the dynamics, and it was again important to mention the predictive model adopted by BRF. As I have insisted since the first two results earnings call, if you make a mistake in the management of BRF, it’s not because of lack of quality and information. The information quality is very high, and this is the main input for us to make the good decision. If you do not make decisions only by using experience or feeling, you are based on proper information. We have a very accurate predictive system at BRF. We have also been working on the pricing system. So this price system allows us to make or take advantages in the domestic and also in the international market.
So if we have a price recovery opportunity, we respond quickly and responding answering the last question of your question, China is more challenging, but it doesn’t have such an impact on our portfolio at this time. Fabio, can you add to what I said?
Fabio Mariano: I have nothing to add, Miguel.
Lucas Ferreira: Let me make a follow-up, a quick follow-up. You talked about the process margin that went back to historical levels. At the international level, as we don’t have much information per region in relation to margin, but it seems that allow us closer to this normalized level that was close to 13%. But other destinations for export are much lower. Is this correct the way I see this? And what about the new price levels and the licenses? Do you see that you’re going to have a direct imports, such as in Asia going back to 2-digit in terms of margin, considering China, do you see that there’s going to be a 2-digit margin in the near horizon and considering China?
Miguel Gularte: Answering your question, I would say, yes, Halal is getting closer to historical levels. It’s in the process of recovery. We have also been making an effort to gain share and looking very closely on the import processes. When you improve logistics, you prove how you serve your clients. And if you improve your service to your clients, you will have the preference in the markets where you operate. And we have been focusing on this quite a lot. In relation to the other markets, we still see this challenge because the prices are still at a lower performance when considered the historic records. And we are very attentive in waiting for this recovery. And considering this experience we’ve had for many years, what we see, Lucas, is that the market usually offers a logic.
So if you have a downward market, it’s not down at all times. It tends to level up and balance back again. And this is what we have been seeing lately. You have the communication being aligned with the others. So you see this happening. And if you have a market which is performing below, it’s not adjusted, you can direct your products to another market, you would lower your offer in the market, which is at a downward trend and that market will retake normal price dynamics. In that is why we say whenever it brings, it stops. So, it’s a trend to level up. These are normal trends, and we are likely to see those natural trends may it realize is long 2024. What we do not need to know for sure is when this is going to happen, if it’s going to happen in the first half or in the second half.
What I can say is that we are on the right path, but I don’t know for sure when this is going to actually materialize.
Lucas Ferreira: Okay. Thank you.
Operator: The Q&A session and the conference of BRF has come to an end. We would like to thank you for attending this call, and have a great day, everyone.
