sao paulo feb 23 reuters  shares in brazilian food processor brf sa brfs3sa fell 253 in early afternoon trading to 1836 reais after it reported fourth quarter results which showed the operating environment remained challenging in its home market management said food sales fell more than expected in january a trend reflected in fourthquarter results when brf turned a profit but reported lower margins amid resilient cost pressure from feed packaging and freight read more lagging food sales reflects falling family incomes and rising inflation in brazil ceo lorival luz said it was unclear whether brf will be able to pass on higher costs in brazil raising the prospect of additional margin squeezes meanwhile it is trying to increase sales of processed products in markets like turkey and the united arab emirates a niche were margins can be higher despite the adverse scenario in brazil brf may benefit from a rise in the price of beef which the company does not sell brf only produces chicken and pork products considered entry level proteins that tend to cost less and capture consumer preference we have a versatile portfolio and capacity to adjust our sales mix luz said in a note to clients credit suisse analysts maintained an outperform rating on brf with a price target of 30 reais we acknowledge the strong performance by brfs management team credit suisse said but there are variables that are out of their hands credit suisse sees strong grain price pressure lasting at least until the end of 2022 next month luz said he expected to travel to saudi arabia where the company is negotiating a joint venture to produce chicken products locally read more regarding an imminent board reshuffle on march 28 luz said all of the main shareholders in the company are aligned regarding investment and future growth plans read more to corroborate that view he cited 91 shareholder backing for the companys followon share offering in which it raised 54 billion reais 108 billion to fund investments and reduce leverage reporting by ana mano editing by bernadette baum and elaine hardcastle