Amlan International's Strategic Play in Brazil: How Partnerships and Pioneering Products Could Pay Off Big

The global beef market is booming, and Amlan International (a subsidiary of Oil-Dri Corporation of America, ODC) is positioning itself at the heart of it. Through a shrewd partnership with Brazil's Boviz Saúde Animal and a high-profile presence at the Rio Preto Country Bulls Rodeo, Amlan is leveraging local expertise and industry events to carve out a significant slice of Brazil's $120 billion cattle sector. For investors, this move isn't just about market share—it's about capitalizing on a trend that combines rising beef demand, sustainability pressures, and the scalability of feed additive technology.

The Brazil Opportunity: Why This Market Matters

Brazil is the world's second-largest beef producer and the undisputed global leader in beef exports, shipping 2.2 million tons abroad in 2024. The country's cattle herd of over 220 million head makes it a natural hub for innovation in livestock management. Amlan's entry into this market is timed perfectly: Brazil's beef industry is under pressure to boost efficiency, reduce environmental footprints, and meet rising export standards—all areas where Amlan's Calibrin®-Z feed additives promise value.

Calibrin®-Z, a mineral-based product, addresses critical pain points for Brazilian producers, including intestinal health, chemical residue avoidance, and sustainable yield growth. By partnering with Boviz, Amlan avoids the costly and time-consuming process of building a local sales force. Instead, it taps into Boviz's established distribution network, which already reaches thousands of producers. This strategic alignment reduces risk while accelerating revenue.

The Power of Partnerships and Platforms

The collaboration with Boviz is more than a sales agreement—it's a model for scaling in emerging markets. Boviz's local knowledge allows Amlan to navigate Brazil's complex regulatory landscape and cultural nuances. For example, Brazilian producers prioritize “chemical-residue-free” solutions due to strict export requirements, a need directly met by Calibrin®-Z's natural formulation.

Equally important is Amlan's presence at the Rio Preto Country Bulls Rodeo, running July 9–13, 2025. With 100,000 attendees annually, this event is a microcosm of Brazil's agricultural economy. By showcasing its products here, Amlan gains direct access to decision-makers in a setting that blends business and community—a far more effective pitch than any boardroom.

Financial Fortitude Backs the Bet

Amlan's parent company, Oil-Dri, provides a critical financial foundation.
- Strong Cash Flow: ODC's net cash from operations surged 49% YTD to $55 million, funding expansions like the Brazil deal.
- Profitability: A 29.8% gross margin underscores the scalability of Amlan's products.
- Dividend Stability: Investors in ODC benefit from a consistent dividend track record, now bolstered by high-margin growth in Brazil.

These metrics suggest ODC has the resources to support Amlan's aggressive expansion without overleveraging. Meanwhile, Brazil's cattle sector is projected to grow at a 2.8% CAGR through 2030, offering a long runway for revenue.

Risks and Considerations

No investment is risk-free. Brazil's political and economic volatility—such as tariff fluctuations or currency swings—could pressure margins. Additionally, competition from legacy players in animal health (e.g., Zoetis or Elanco) remains fierce. However, Amlan's focus on sustainability-driven innovation positions it to win producers prioritizing both profit and ESG compliance.

The Investment Thesis: ODC as a Play on Global Beef Growth

For investors, Amlan's Brazil push is a vote of confidence in two trends: rising beef demand and sustainable agriculture tech. ODC's stock, which has lagged behind broader market gains this year, could see a re-rating if Amlan's Brazil venture meets early sales targets. Key catalysts to watch include:
1. Rodeo Impact: How many new producers engage with Amlan's booth in July.
2. 2025 Q4 Earnings: ODC's report in early 2026 will likely include Amlan's Brazil performance.
3. Regulatory Milestones: Any approvals for Calibrin®-Z in export-focused regions like the EU or Middle East.

Final Take: Buy the Dip, Watch the Catalysts

ODC's valuation is reasonable at 15x forward earnings, with a dividend yield of 1.8%. The Brazil play adds a high-growth, low-risk leg to ODC's portfolio. Investors should consider accumulating shares ahead of the rodeo, with a target price of $75–$80 (a 20–30% upside from current levels) if Brazil results hit the mark.

In a world where protein demand is surging and sustainability is non-negotiable, Amlan's strategic moves in Brazil are more than a regional play—they're a blueprint for winning the global cattle market of the future.

Disclosure: The author holds no position in ODC at the time of writing.