20-F/A

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F/A
(Amendment No. 1)

¨            REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

x           ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017
OR

¨            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

¨            SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-15148

BRF S.A.

(Exact Name of Registrant as Specified in its charter)

N/A

(Translation of Registrant’s name into English)

Federative Republic of Brazil
(Jurisdiction of Incorporation or Organization)

R. Hungria, 1400 - 5th Floor
Jd. Europa – 01455-000

São Paulo – SP, Brazil
(Address of principal executive offices)

Lorival Nogueira Luz Júnior, Global Chief Executive and Financial and Investor Relations Officer
Tel. (5511) 2322-5005, Fax (5511) 2322-5740
R. Hungria, 1400 - 5th Floor
Jd. Europa – 01455-000

São Paulo – SP, Brazil
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class   Common Shares, no par value* American Depositary Shares (as evidenced by American Depositary Receipts), each representing one share of common stock Name of each exchange on which registered The New York Stock Exchange The New York Stock Exchange

____________________

*   Not for trading purposes, but only in connection with the registration of American Depositary Shares representing those common shares.

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

 

None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

At December 31, 2017 812,473,246 shares of common stock

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes x   No ¨

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  Yes ¨   No x

Note- Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   x	Accelerated filer   ¨
Non-accelerated filer   ¨	Emerging growth company    ¨

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

¨  U.S. GAAP x    International Financial Reporting Standards as issued by the International Accounting Standards Board ¨  Other

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 ¨   Item 18 ¨.

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨   No x

 

EXPLANATORY NOTE

This Amendment No. 1 to the Annual Report on Form 20-F of BRF S.A. (the “Company”) amends the Company’s Annual Report on Form 20-F for the year ended December 31, 2017 (the “Original 2017 20-F”), which was filed with the Securities and Exchange Commission on April 30, 2018. The Company is filing this Amendment No. 1 solely to furnish Exhibit 101, which was not included in the Original 2017 20-F. Exhibit 101 includes information about the Company in eXtensible Business Reporting Language (XBRL).

Except as described above, this Amendment No. 1 does not amend any information set forth in the Original 2017 20-F, and the Company has not updated disclosures included therein to reflect any events that occurred subsequent to April 30, 2018.

Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and are otherwise not subject to liability under those sections.

3

 

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing this Amendment No. 1 to Form 20-F and that it has duly caused and authorized the undersigned to sign this Amendment No. 1 to the annual report on Form 20-F on its behalf.

BRF S.A.

By: /s/  Lorival Nogueira Luz Júnior

Name: Lorival Nogueira Luz Júnior

Title:     Global Chief Executive and Financial and Investor Relations Officer

Date: May 29, 2018

4

 

EXHIBIT INDEX

Exhibit Number Description

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

5

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2017 shares
Document And Entity Information
Entity Registrant Name	BRF S.A.
Entity Central Index Key	0001122491
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Trading Symbol	BRF
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	812,473,246
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2017

XML

CONSOLIDATED BALANCE SHEETS - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	R$ 6,010.8	R$ 6,356.9
Marketable securities	228.4	622.3
Trade accounts receivable, net	3,919.0	3,085.1
Notes receivable	113.1	149.0
Interest on shareholders' equity receivable	6.2	7.5
Inventories	4,948.2	4,791.6
Biological assets	1,510.5	1,644.9
Recoverable taxes	728.9	846.1
Income and social contribution tax recoverable	499.3	388.7
Assets held for sale	41.6	26.1
Derivative financial instruments	90.5	198.0
Restricted cash	127.8	218.3
Other current assets	961.1	559.2
Total current assets	19,185.4	18,893.7
NON-CURRENT ASSETS
Marketable securities	568.8	527.7
Trade accounts receivable, net	6.3	10.7
Notes receivable	116.4	186.5
Recoverable taxes	2,418.2	1,482.6
Income and social contribution tax recoverable	20.0	36.0
Deferred income and social contribution taxes	1,369.4	1,103.1
Judicial deposits	688.9	732.6
Biological assets	903.7	917.3
Restricted cash	407.8	427.6
Other non-current assets	87.2	149.6
Investments	68.2	58.7
Property, plant and equipment, net	12,190.6	11,746.2
Intangible assets	7,197.6	6,672.6
Total non-current assets	26,043.1	24,051.2
TOTAL ASSETS	45,228.5	42,944.9
CURRENT LIABILITIES
Short-term debt	5,031.4	3,245.0
Trade accounts payable	6,445.5	5,839.8
Supply chain finance	715.2	1,335.6
Payroll and related charges	668.6	610.8
Tax payable	426.0	319.6
Interest on shareholders' equity payable	1.9	2.3
Employee and management profit sharing	95.9	5.1
Derivative financial instruments	299.5	529.6
Provision for tax, civil and labor risks	536.1	276.2
Pension and other post-employment plans	85.2	76.7
Other current liabilities	602.6	399.7
Total current liabilities	14,907.9	12,640.4
NON-CURRENT LIABILITIES
Long-term debt	15,413.0	15,717.4
Tax payable	171.2	13.1
Provision for tax, civil and labor risks	1,237.1	1,107.7
Deferred income and social contribution taxes	155.3	156.2
Pension and other post-employment plans	309.6	253.4
Other non-current liabilities	1,321.5	837.3
Total non-current liabilities	18,607.7	18,085.1
EQUITY
Capital	12,460.5	12,460.5
Capital reserves	115.1	41.0
Treasury shares	(71.5)	(721.9)
Income reserves	101.4	1,350.7
Accumulated other comprehensive loss	(1,405.2)	(1,290.3)
Equity attributable to interest of controlling shareholders	11,200.3	11,840.0
Equity attributable to non-controlling interest	512.6	379.4
Total shareholders' equity	11,712.9	12,219.4
TOTAL LIABILITIES AND EQUITY	R$ 45,228.5	R$ 42,944.9

XML

CONSOLIDATED STATEMENTS OF INCOME (LOSS) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONTINUING OPERATIONS
NET SALES	R$ 33,469.4	R$ 33,732.9	R$ 32,196.6
Cost of sales	(26,565.3)	(26,206.4)	(22,107.7)
GROSS PROFIT	6,904.1	7,526.5	10,088.9
OPERATING INCOME (EXPENSES)
Selling expenses	(4,730.1)	(4,965.7)	(4,805.9)
General and administrative expenses	(572.0)	(577.4)	(506.1)
Other operating expenses, net	(888.2)	(197.5)	(444.7)
Income (loss) from associates and joint ventures	22.4	29.3	(103.8)
INCOME BEFORE FINANCIAL RESULTS AND INCOME TAXES	736.2	1,815.2	4,228.4
Financial expenses	(3,627.3)	(4,506.4)	(5,025.5)
Financial income	1,545.6	2,373.7	3,355.3
(LOSS) INCOME BEFORE TAXES	(1,345.5)	(317.5)	2,558.2
Current income taxes	16.6	(154.0)	(17.1)
Deferred income taxes	230.0	104.1	406.6
(LOSS) INCOME FROM CONTINUING OPERATIONS	(1,098.9)	(367.4)	2,947.7
DISCONTINUED OPERATIONS
INCOME FROM DISCONTINUED OPERATIONS			183.1
NET (LOSS) PROFIT	(1,098.9)	(367.4)	3,130.9
Attributable to
Controlling shareholders	(1,125.6)	(372.4)	2,928.1
Non-controlling interest	26.7	5.0	19.6
NET (LOSS) PROFIT	R$ (1,098.9)	R$ (367.4)	R$ 3,130.9
(LOSSES) EARNINGS PER SHARE
Weighted average shares outstanding - basic	803,559,763	801,903,266	842,000,012
(Losses) earnings per share - basic	R$ (1.36748)	R$ (0.45808)	R$ 3.71836
Weighted average shares outstanding - diluted	803,559,763	801,903,266	842,401,821
(Losses) earnings per share - diluted	R$ (1.36748)	R$ (0.45808)	R$ 3.71659
(LOSSES) EARNINGS PER SHARE FROM CONTINUING OPERATIONS
Weighted average shares outstanding - basic	803,559,763	801,903,266	842,000,012
(Losses) earnings per share - basic	R$ (1.36748)	R$ (0.45808)	R$ 3.50091
Weighted average shares outstanding - diluted	803,559,763	801,903,266	842,401,821
(Losses) earnings per share - diluted	R$ (1.36748)	R$ (0.45808)	R$ 3.49924

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements Of Comprehensive Income Loss
Net (loss) profit	R$ (1,098.9)	R$ (367.4)	R$ 3,130.9
Other comprehensive income (loss)
(Losses) gains on foreign currency translation adjustments	(73.2)	(726.1)	184.9
Unrealized (losses) gains on available for sale marketable securities	(41.7)	(31.0)	10.6
Taxes on unrealized gains (losses) on available for sale securities	11.5	13.5	(1.8)
Unrealized gains (losses) on cash flow hedge		820.0	(1,020.8)
Taxes on unrealized (losses) gains on cash flow hegde	3.8	(272.7)	346.4
Net other comprehensive loss, to be reclassified to the statement of income in subsequent periods	(99.6)	(196.3)	(480.7)
Actuarial gains on pension and post-employment plans	1.5	7.0	48.6
Taxes on actuarial gains on pension and post-employment plans		(2.4)	(16.5)
Net other comprehensive income, with no impact into subsequent statement of income	1.5	4.6	32.1
Total comprehensive (loss) income	(1,197.0)	(559.1)	2,682.2
Attributable to
Controlling shareholders	(1,223.7)	(564.1)	2,662.6
Non-controlling interest	26.7	5.0	19.6
Total comprehensive (loss) income	R$ (1,197.0)	R$ (559.1)	R$ 2,682.2

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - BRL (R$) R$ in Millions	Paid-in capital [Member]	Capital Reserve [Member]	Treasury Shares [Member]	Legal reserve [Member]	Reserve for expansion [Member]	Reserve for capital increases [Member]	Reserve for tax incentives [Member]	Acumulated foreign currency translation adjustments [Member]	Available for sale marketable securities [Member]	Gain (losses) on cash flow hedge [Member]	Actuarial gains (losses) [Member]	Retained earnings (losses) [Member]	Total equity [Member]	Non-controlling interest [Member]	Total
BALANCES AT BEGINNING at Dec. 31, 2014	R$ 12,460.5	R$ 109.4	R$ (304.9)	R$ 384.6	R$ 1,901.4	R$ 1,274.2	R$ 385.6	R$ (152.6)	R$ (17.3)	R$ (448.7)	R$ (1.7)		R$ 15,590.4	R$ 99.5	R$ 15,689.9
Gain (loss) on foreign currency translation adjustments								184.9					184.9		184.9
Unrealized gain (loss) in available for sale marketable securities									8.8				8.8		8.8
Unrealized loss in cash flow hedge										(674.4)			(674.4)		(674.4)
Actuarial gains (losses) on pension and post-employment plans											21.6	10.5	32.1		32.1
Net profit (loss) for the year												3,111.2	3,111.2	19.7	3,130.9
SUB-TOTAL COMPREHENSIVE INCOME								184.9	8.8	(674.4)	21.6	3,121.7	2,662.6	19.7	2,682.2
Dividends outstanding share at the end of year												(91.4)	(91.4)		(91.4)
Interest on shareholders' equity outstanding share at the end of year												(899.3)	(899.3)		(899.3)
Loss absorbing with legal reserve				155.6								(155.6)
Reserve for expansion					1,219.4							(1,219.4)
Loss absorbing with future capital increase						624.3						(624.3)
Reserve for tax incentives							131.7					(131.7)
Share-based payments		67.4											67.4		67.4
Losses on shares sold		(40.3)											(40.3)		(40.3)
Valuation of shares		111.2											111.2		111.2
Acquisition of non-controlling interest		(240.9)											(240.9)		(240.9)
Non-controlling interest														199.9	199.9
Treasury shares acquired			(3,765.8)										(3,765.8)		(3,765.8)
Treasury shares sold			122.7										122.7		122.7
BALANCES AT END at Dec. 31, 2015	12,460.5	7.0	(3,947.9)	540.2	3,120.8	1,898.6	517.2	32.3	(8.5)	(1,123.2)	19.9		13,516.8	319.1	13,836.0
Gain (loss) on foreign currency translation adjustments								(726.1)					(726.1)		(726.1)
Unrealized gain (loss) in available for sale marketable securities									(17.5)				(17.5)		(17.5)
Unrealized loss in cash flow hedge										547.3			547.3		547.3
Actuarial gains (losses) on pension and post-employment plans											(14.5)	19.1	4.6		4.6
Net profit (loss) for the year												(372.4)	(372.4)	5.0	(367.4)
SUB-TOTAL COMPREHENSIVE INCOME								(726.1)	(17.5)	547.3	(14.5)	(353.3)	(564.1)	5.0	(559.1)
Dividends outstanding share at the end of year					(98.2)								(98.2)		(98.2)
Interest on shareholders' equity outstanding share at the end of year						(513.2)							(513.2)		(513.2)
Loss absorbing with future capital increase						(475.8)						475.8
Reserve for tax incentives							122.6					(122.6)
Share-based payments		75.8											75.8		75.8
Losses on shares sold		(1.6)											(1.6)		(1.6)
Valuation of shares		(7.8)											(7.8)		(7.8)
Options forfeited		(32.4)											(32.4)		(32.4)
Non-controlling interest														55.3	55.3
Treasury shares acquired			(543.3)										(543.3)		(543.3)
Treasury shares sold			8.0										8.0		8.0
Treasury Shares Canceled			3,761.3		(3,022.6)	(738.8)
BALANCES AT END at Dec. 31, 2016	12,460.5	41.0	(721.9)	540.2		170.8	639.8	(693.8)	(26.0)	(575.9)	5.4	(0.1)	11,840.0	379.4	12,219.4
Gain (loss) on foreign currency translation adjustments								(73.1)					(73.1)		(73.2)
Unrealized gain (loss) in available for sale marketable securities									(30.3)				(30.3)		(30.3)
Unrealized loss in cash flow hedge										3.7			3.7		3.7
Actuarial gains (losses) on pension and post-employment plans											(15.2)	16.8	1.6		1.6
Net profit (loss) for the year												(1,125.6)	(1,125.6)	26.7	(1,098.9)
SUB-TOTAL COMPREHENSIVE INCOME								(73.1)	(30.3)	3.7	(15.2)	(1,108.8)	(1,223.7)	26.7	(1,197.0)
Loss absorbing with legal reserve				(438.8)								438.8
Loss absorbing with future capital increase						(30.3)						30.3
Reserve for tax incentives							(639.8)					639.8
Share-based payments		25.6											25.6		25.6
Acquisition of non-controlling interest		48.5											48.5		48.5
Non-controlling interest														106.5	106.5
Treasury shares sold			650.4										650.4		650.4
Losses in Treasury Shares Sold						(140.5)							(140.5)		(140.5)
BALANCES AT END at Dec. 31, 2017	R$ 12,460.5	R$ 115.1	R$ (71.5)	R$ 101.4				R$ (766.9)	R$ (56.3)	R$ (572.2)	R$ (9.8)		R$ 11,200.3	R$ 512.6	R$ 11,712.9

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - R$ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of changes in equity [abstract]
Outstanding dividend per share	R$ 0.121749293	R$ 0.112896461
Interest on shareholders equity per share	R$ 0.642347435	R$ 1.086894475

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES
Net (loss) profit	R$ (1,125.6)	R$ (372.4)	R$ 2,928.1
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Non-controlling interest	26.7	5.0	19.6
Depreciation and amortization	1,159.3	921.9	771.6
Depreciation and depletion of biological assets	758.7	680.9	545.0
Income (loss) from associates and joint ventures	(22.4)	(29.3)	103.8
Interest on Shareholders' Equity Received	(6.9)
Tax Amnesty Program ("PERT")	(449.8)
Gain in business combination		(59.6)
Gain on Minerva investment			(125.7)
Results on Disposals of Property, Plant and Equipments	113.2	(38.4)	16.4
Deferred income tax	(230.0)	(104.1)	(406.6)
Provision for tax, civil and labor risks	577.5	414.0	98.9
Other	396.0	237.1	345.1
Exchange rate variations and interest	1,561.1	(446.3)	2,853.9
Changes in operating assets and liabilities
Investments in trading securities	(313.9)	(893.2)	(1,023.7)
Redemptions of trading securities	375.4	1,001.3	900.0
Interest received	405.5	186.5	13.2
Other financial assets and liabilities	(94.3)	580.2	(687.4)
Trade accounts receivable	(578.4)	1,246.9	(1,112.5)
Inventories	(195.3)	(449.9)	(1,066.2)
Biological assets - current assets	229.8	(297.2)	(199.3)
Trade accounts payable	165.8	848.5	882.2
Supply chain finance	(620.9)	161.0	719.5
Payment of tax, civil and labor risks	(509.3)	(401.0)	(194.4)
Interest paid	(1,369.0)	(851.3)	(693.9)
Payment of income tax and social contribution	(37.2)	40.5	(6.9)
Interest on shareholders' equity received	33.7	19.5	15.9
Other operating assets and liabilities	403.0	(579.4)	(562.5)
Net cash provided by operating activities from continuing operations	652.7	1,821.2	4,134.2
Net cash provided by operating activities from discontinued operations			2.4
Net cash provided by operating activities	652.7	1,821.2	4,136.6
INVESTING ACTIVITIES
Investments in held to maturity securities	(97.6)	(172.9)
Redemptions of held to maturity marketable securities	118.6
Investments in available for sale securities		(66.7)	(58.9)
Redemptions of available for sale securities	238.3	91.5	130.3
Redemption (Investments) in restricted cash	74.7	1,258.0	(1,710.9)
Business combination, net of cash acquired	(1,119.7)	(2,871.7)	(90.9)
Investments in associates and joint ventures	(1.2)	(1.3)	(61.6)
Acquisition of property, plant and equipment	(887.0)	(1,859.5)	(1,296.7)
Additions to biological assets - non-current assets	(713.2)	(784.2)	(589.4)
Proceeds from disposals of property, plant and equipment	150.3	309.6	252.3
Additions to intangible assets	(51.2)	(62.8)	(205.4)
Cash received on the disposal of the discontinued operations, net of transferred cash			1,957.2
Net cash used in investing activities from continuing operations	(2,288.0)	(4,159.9)	(1,674.0)
Net cash used in Investing activities from discontinued operations			(12.3)
Net cash used in investing activities	(2,288.0)	(4,159.9)	(1,686.3)
FINANCING ACTIVITIES
Proceeds from debt issuance	9,698.4	8,946.2	6,290.1
Repayment of debt	(9,001.2)	(3,512.3)	(6,031.5)
Treasury shares acquired		(543.3)	(3,765.8)
Treasury shares disposal	509.9	6.4	82.4
Payments of interest on shareholders' equity and dividends		(1,176.3)	(889.1)
Net cash provided by (used in) financing activities from continuing operations	1,207.1	3,720.7	(4,313.9)
Net cash provided by financing activities from discontinued operations			20.0
Net cash provided by (used in) financing activities	1,207.1	3,720.7	(4,293.9)
EFFECT ON EXCHANGE RATE VARIATION ON CASH AND CASH EQUIVALENTS	82.0	(387.9)	1,199.5
Net increase (decrease) in cash and cash equivalents	(346.2)	994.0	(644.1)
At the beginning of the year	6,356.9	5,362.9	6,006.9
At the end of the year	R$ 6,010.8	R$ 6,356.9	R$ 5,362.9

XML

1. COMPANY'S OPERATIONS

12 Months Ended

Dec. 31, 2017

Companys Operations

COMPANY'S OPERATIONS

1.            COMPANY’S OPERATIONS

BRF S.A. (“BRF”) and its consolidated subsidiaries (collectively the “Company”) is a multinational Brazilian Company, which owns a comprehensive and diverse portfolio of products and it is one of the world’s largest producers of foods. With a focus on raising, producing and slaughtering of poultry and pork for processing, production and sale of fresh meat, processed products, pasta, sauce, mayonnaise, frozen vegetables and soybean by-products, among which the following are highlighted:

·                Whole chickens and frozen cuts of chicken, turkey and pork;

·                Ham products, bologna, sausages, frankfurters and other smoked products;

·                Hamburgers, breaded meat products and meatballs;

·                Lasagnas, pizzas, cheese breads, pies and frozen vegetables;

·                Margarine, sauces and mayonnaise; and

·                Soy meal and refined soy flour, as well as animal feed.

BRF is a public company, listed on the New Market of B3 (“Brasil, Bolsa, Balcão”), under the ticker BRFS3, and listed on the New York Stock Exchange (“NYSE”), under the ticker BRFS. Its headquarters are located at Rua Jorge Tzachel, 475 in the City of Itajaí, State of Santa Catarina.

Our portfolio strategy is focused on creating new, convenient, practical and healthy products for our consumers based on their needs. We seek to achieve that goal through strong innovation to provide us with increasing value-added items that will differentiate us from our competitors and strengthen our brands.

The Company's business model is by means of a vertical and integrated production system, which are distributed through an extensive distribution network, reaching the 5 continents, to meet the supermarkets, retail stores, wholesalers, restaurants and other institutional customers. In addition, our facilities are strategically located near to their raw material suppliers or its main consumption centers.

The Company has as main brands Sadia, Perdigão, Qualy, Chester®, Perdix, Paty and Banvit that are highly recognized, especially in Brazil, Argentina, Turkey and the Middle East.

During the first semester of 2017, the Company developed its new management structure model, which was approved by Board of Directors on June 29, 2017, with the effective date July 1^st, 2017. The new model aims to improve and standardize processes, and is organized into 5 operating segments as follows: Brazil, Southern Cone (dismemberment from the "LATAM" segment and currently formed of the Argentina, Uruguay, Paraguay and Chile), International (grouping of the segments "Europe", "Africa" and "Asia" and inclusion of "Americas" from the dismemberment of "LATAM"), One Foods (previously denominated "MENA"), and Other Segments (note 5). The One Foods segment also began to incorporate the operations of Malaysia and some countries in the African continent and Eastern Europe.  

1.1.        Equity interest

						% equity interest
Entity		Main activity	Country	Participation	Accounting method	12.31.17	12.31.16
BRF Energia S.A.		Commercialization of eletric energy	Brazil	Direct	Consolidated	100.00%	100.00%
BRF GmbH		Holding	Austria	Direct	Consolidated	100.00%	100.00%
BRF Foods LLC	(h)	Import and commercialization of products	Russia	Indirect	Consolidated	99.90%	90.00%
BRF France SARL		Marketing and logistics services	France	Indirect	Consolidated	100.00%	100.00%
BRF Global Company Nigeria Ltd.		Marketing and logistics services	Nigeria	Indirect	Consolidated	99.00%	99.00%
BRF Global Company South Africa Proprietary Ltd.		Import and commercialization of products	South Africa	Indirect	Consolidated	100.00%	100.00%
BRF Global Company Nigeria Ltd.		Marketing and logistics services	Nigeria	Indirect	Consolidated	1.00%	1.00%
BRF Global GmbH	(b)	Holding and trading	Austria	Indirect	Consolidated	100.00%	100.00%
BRF Foods LLC	(h)	Import and commercialization of products	Russia	Indirect	Consolidated	0.10%	-
Qualy 5201 B.V.	(b)	Import, commercialization of products and holding	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Xamol Consultores Serviços Ltda.		Import and commercialization of products	Portugal	Indirect	Consolidated	100.00%	100.00%
BRF Japan KK		Marketing and logistics services	Japan	Indirect	Consolidated	100.00%	100.00%
BRF Korea LLC		Marketing and logistics services	Korea	Indirect	Consolidated	100.00%	100.00%
BRF Shanghai Management Consulting Co. Ltd.		Advisory and related services	China	Indirect	Consolidated	100.00%	100.00%
BRF Shanghai Trading Co. Ltd.		Commercialization and distribution of products	China	Indirect	Consolidated	100.00%	100.00%
BRF Singapore PTE Ltd.		Marketing and logistics services	Singapore	Indirect	Consolidated	100.00%	100.00%
BRF Germany GmbH		Import and commercialization of products	Germany	Indirect	Consolidated	100.00%	100.00%
BRF GmbH Turkiye Irtibat		Import and commercialization of products	Turkey	Indirect	Consolidated	100.00%	100.00%
BRF Holland B.V.		Import and commercialization of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	2.66%	2.63%
Eclipse Holding Cöoperatief U.A.		Holding	The Netherlands	Indirect	Consolidated	0.01%	0.01%
BRF B.V.		Industrialization, import and commercialization of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
ProudFood Lda	(j)	Import and commercialization of products	Angola	Indirect	Consolidated	10.00%	-
BRF Hungary LLC		Import and commercialization of products	Hungary	Indirect	Consolidated	100.00%	100.00%
BRF Iberia Alimentos SL		Import and commercialization of products	Spain	Indirect	Consolidated	100.00%	100.00%
BRF Invicta Ltd.	(l)	Import, commercialization and distribution of products	England	Indirect	Consolidated	69.16%	62.00%
Invicta Food Products Ltd.		Import and commercialization of products	England	Indirect	Consolidated	100.00%	100.00%
BRF Wrexham Ltd.		Industrialization, import and commercialization of products	England	Indirect	Consolidated	100.00%	100.00%
Invicta Food Group Ltd.	(b)	Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Invicta Foods Ltd.		Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Invicta Foodservice Ltd.		Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Universal Meats (UK) Ltd.	(b)	Import, Industrialization, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
BRF Italia SPA		Import and commercialization of products	Italy	Indirect	Consolidated	67.00%	67.00%
Compañía Paraguaya Comercial S.A.		Import and commercialization of products	Paraguay	Indirect	Consolidated	99.00%	99.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	50.48%	50.06%
Itega S.A.		Holding	Argentina	Indirect	Consolidated	96.00%	96.00%
Eclipse Holding Cöoperatief U.A.		Holding	The Netherlands	Indirect	Consolidated	99.99%	99.99%
Buenos Aires Fortune S.A.		Holding	Argentina	Indirect	Consolidated	5.00%	5.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	8.44%	10.61%
Eclipse Latam Holdings		Holding	Spain	Indirect	Consolidated	100.00%	100.00%
Buenos Aires Fortune S.A.		Holding	Argentina	Indirect	Consolidated	95.00%	95.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	6.53%	6.34%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	31.89%	30.36%
Itega S.A.		Holding	Argentina	Indirect	Consolidated	4.00%	4.00%
Golden Foods Poultry Limited		Holding	Thailand	Indirect	Consolidated	48.52%	48.52%
Golden Poultry Siam Limited		Holding	Thailand	Indirect	Consolidated	51.84%	51.84%
Golden Poultry Siam Limited		Holding	Thailand	Indirect	Consolidated	48.16%	48.16%
BRF Thailand Limited		Import, Industrialization, commercialization and distribution of products	Thailand	Indirect	Consolidated	100.00%	100.00%
BRF Feed Thailand Limited		Import, Industrialization, commercialization and distribution of products	Thailand	Indirect	Consolidated	100.00%	100.00%
Golden Foods Sales (Europe) Limited		Holding and trading	England	Indirect	Consolidated	100.00%	100.00%
Golden Quality Foods Europe BV		Import, commercialization and distribution of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Golden Quality Foods Netherlands BV		Import, commercialization and distribution of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Golden Foods Siam Europe Limited	(b)	Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Golden Quality Poultry (UK) Ltd		Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Perdigão Europe Lda.		Import and export of products	Portugal	Indirect	Consolidated	100.00%	100.00%
Perdigão International Ltd.		Import and export of products	Cayman Island	Indirect	Consolidated	100.00%	100.00%
BFF International Ltd.		Financial fundraising	Cayman Island	Indirect	Consolidated	100.00%	100.00%
Highline International	(a)	Financial fundraising	Cayman Island	Indirect	Consolidated	100.00%	100.00%
Sadia Overseas Ltd.	(q)	Financial fundraising	Cayman Island	Direct	Consolidated	98.00%	-
ProudFood Lda	(j)	Import and commercialization of products	Angola	Indirect	Consolidated	90.00%	-
Sadia Chile S.A.		Import and commercialization of products	Chile	Indirect	Consolidated	40.00%	40.00%
Sadia Foods GmbH		Import and commercialization of products	Germany	Indirect	Consolidated	100.00%	100.00%
SATS BRF Food PTE Ltd.		Import, industrialization, commercialization and distribution of products	Singapore	Joint venture	Equity pick-up	49.00%	49.00%
BRF Global Namíbia		Import and commercialization of products	Namibia	Indirect	Consolidated	100.00%	100.00%
Wellax Food Logistics C.P.A.S.U. Lda.		Import and commercialization of products	Portugal	Indirect	Consolidated	100.00%	1.00
BRF Luxembourg Sarl	(f)	Holding	Luxemburgo	Direct	Consolidated	100.00%	100.00%
BRF Austria GmbH	(f)	Holding	Austria	Indirect	Consolidated	100.00%	100.00%
One Foods Holdings Ltd	(d) (f)	Holding	United Arab Emirates	Indirect	Consolidated	100.00%	-
Al-Wafi Food Products Factory LLC	(e) (f)	Industrialization and commercialization of products	United Arab Emirates	Indirect	Consolidated	49.00%	-
Badi Ltd.	(e) (f)	Holding	United Arab Emirates	Indirect	Consolidated	100.00%	-
Al-Wafi Al-Takamol International for Foods Products	(e) (f)	Import and commercialization of products	Saudi Arabia	Indirect	Consolidated	75.00%	-
BRF Al Yasra Food K.S.C.C. ("BRF AFC")	(e) (f)	Import, commercialization and distribution of products	Kuwait	Indirect	Consolidated	49.00%	-
BRF Foods GmbH	(e) (f)	Industrialization, import and commercialization of products	Austria	Indirect	Consolidated	100.00%	-
Al Khan Foodstuff LLC ("AKF")	(c) (e)	Import, commercialization and distribution of products	Oman	Indirect	Consolidated	70.00%	-
FFM Further Processing Sdn. Bhd.	(e) (f)	Industrialization, import and commercialization of products	Malaysia	Indirect	Consolidated	70.00%	70.00%
SHB Comércio e Indústria de Alimentos S.A.	(e) (f)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	99.99%	-
TBQ Foods GmbH	(i) (n)	Commercialization of products	Austria	Indirect	Consolidated	60.00%	-
Banvit Bandirma Vitaminli	(n) (p)	Holding	Turkey	Indirect	Consolidated	91.71%	-
Banvit Enerji ve Elektrik Üretim  Ltd. Sti.	(n)	Commercialization of eletric energy	Turkey	Indirect	Consolidated	100.00%	-
Banvit Foods SRL	(n)	Industrialization of grains and animal feed	Romania	Indirect	Consolidated	0.01%	-
Nutrinvestments BV	(n)	Holding	The Netherlands	Indirect	Consolidated	100.00%	-
Banvit ME FZE	(n)	Marketing and logistics services	United Arab Emirates	Indirect	Consolidated	100.00%	-
Banvit Foods SRL	(n)	Industrialization of grains and animal feed	Romania	Indirect	Consolidated	99.99%	-
BRF Malaysia Sdn Bhd	(k)	Marketing and logistics services	Malaysia	Indireta	Consolidated	100.00%	100.00%
Federal Foods LLC	(e) (f)	Import, commercialization and distribution of products	United Arab Emirates	Indirect	Consolidated	49.00%	-
Federal Foods Qatar	(e) (f)	Import, commercialization and distribution of products	Qatar	Indirect	Consolidated	49.00%	49.00%
SHB Comércio e Indústria de Alimentos S.A.	(e) (f)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	0.01%	-
BRF Hong Kong LLC	(g)	Import, commercialization and distribution of products	Hong Kong	Indirect	Consolidated	100.00%	-

Entity		Main activity	Country	Participation	Accounting method	12.31.17	12.31.16
Establecimiento Levino Zaccardi y Cia. S.A.	(a)	Industrialization and commercialization of dairy products	Argentina	Direct	Consolidated	99.94%	99.94%
BRF Pet S.A.	(o)	Industrialization and commercialization and distribution of feed and nutrients for animals	Brazil	Direct	Consolidated	100.00%	100.00%
PP-BIO Administração de bem próprio S.A.		Management of assets	Brazil	Affiliate	Equity pick-up	33.33%	33.33%
PSA Laboratório Veterinário Ltda.		Veterinary activities	Brazil	Direct	Consolidated	99.99%	99.99%
Sino dos Alpes Alimentos Ltda.	(a)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	99.99%	99.99%
PR-SAD Administração de bem próprio S.A.		Management of assets	Brazil	Affiliate	Equity pick-up	33.33%	33.33%
Quickfood S.A.		Industrialization and commercialization of products	Argentina	Direct	Consolidated	91.21%	91.21%
Sadia Alimentos S.A.		Holding	Argentina	Direct	Consolidated	43.10%	43.10%
Avex S.A.		Industrialization and commercialization of products	Argentina	Indirect	Consolidated	33.98%	33.98%
Sadia International Ltd.		Import and commercialization of products	Cayman Island	Direct	Consolidated	100.00%	100.00%
Sadia Chile S.A.		Import and commercialization of products	Chile	Indirect	Consolidated	60.00%	60.00%
Sadia Uruguay S.A.		Import and commercialization of products	Uruguay	Indirect	Consolidated	5.10%	5.10%
Avex S.A.		Industrialization and commercialization of products	Argentina	Indirect	Consolidated	66.02%	66.02%
Compañía Paraguaya Comercial S.A.		Import and commercialization of products	Paraguay	Indirect	Consolidated	1.00%	1.00%
Sadia Alimentos S.A.		Holding	Argentina	Indirect	Consolidated	56.90%	56.90%
Sadia Overseas Ltd.	(q)	Financial fundraising	Cayman Island	Direct	Consolidated	2.00%	100.00%
Sadia Uruguay S.A.		Import and commercialization of products	Uruguay	Direct	Consolidated	94.90%	94.90%
UP Alimentos Ltda.		Industrialization and commercialization of products	Brazil	Affiliate	Equity pick-up	50.00%	50.00%
Vip S.A. Empreendimentos e Participações Imobiliárias		Commercialization of owned real state	Brazil	Direct	Consolidated	100.00%	100.00%
Establecimiento Levino Zaccardi y Cia. S.A.	(a)	Industrialization and commercialization of dairy products	Argentina	Indirect	Consolidated	0.06%	0.06%
PSA Laboratório Veterinário Ltda.		Veterinary activities	Brazil	Indirect	Consolidated	0.01%	0.01%
Sino dos Alpes Alimentos Ltda.	(a)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	0.01%	0.01%

^(a)       Dormant subsidiaries.

^(b)       The wholly-owned subsidiary BRF Global GmbH, operates as a trading in the European market and owns 101 direct subsidiaries in Madeira Island, Portugal, with an investment as of December 31, 2017 of R$3.6 (R$3.3 as of December 31, 2016) and a direct subsidiary in Den Bosch, The Netherlands, denominated Qualy 20 with an investment as of December 31, 2017 of R$6.5 (R$6.6 as of December 31, 2016). The wholly-owned subsidiary Qualy 5201 B.V. owns 212 subsidiaries in The Netherlands being the amount of this investment as of December 31, 2017 of R$20.2 (R$18.2 as of December 31, 2016). The indirect subsidiary Invicta Food Group Ltd. owns 120 direct subsidiaries in Ashford, England, with an investment of R$126.6 as of December 31, 2017 (R$112.5 as of December 31, 2016). The indirect subsidiary Universal Meats (UK) Ltd owns 99 direct subsidiaries in Ashford, England with an investment of R$41.6 as of December 1, 2017 (R$37.5 as of December 31, 2016). The indirect subsidiary Golden Foods Siam Europe Ltd (GFE) owns 32 subsidiaries in Ashford. England with an investment of R$0.02 as of December 31, 2017 (R$114.1 as of December 31, 2016). The purpose of these subsidiaries is to operate in the European market to increase the Company’s market share, which is regulated by a system of poultry and turkey meat import quotas.

^(c)       On January 02, 2017, disposal of subsidiary to BRF Foods GmbH.

^(d)       On January 11, 2017, establishment of equity interest.

^(e)       On January 12, 2017, acquisition of equity interest by One Foods Holdings Ltd. On December 31, 2016, such equity interests were held by wholly-owned subsidiary BRF GmbH.

^(f)        On January 13, 2017, with investment in SHB through capital increase in direct capital increase in direct subsidiaries. On December 31, 2016, SHB’s equity interest was held by BRF S.A. (99.00%) and by wholly-owned subsidiary PSA Laboratório Veterinário Ltda (1.00%).

^(g)       On January 13, 2017, establishment of equity interest.

^(h)       On February 28, 2017, acquisition of equity interest by BRF GmbH and BRF Global GmbH. On December 31, 2016, such equity interest was held by wholly-owned subsidiary Sadia Foods GmbH.

⁽ⁱ⁾        On March 08, 2017, establishment of the subsidiaries TBQ Foods GmbH.

^(j)        On March 31, 2017, establishment of equity interest, 90% held by the subsidiary BRF GmbH and 10% held by the subsidiary BRF Holland B.V., both wholly-owned subsidiary.

^(k)       On April 10, 2017, disposal of 100% of equity interest to One Foods Holdings Ltd.

^(l)        On April 18, 2017, acquisition of 7.16% of equity interest.

^(m)      On April 27,2017, change in equity interest of the subsidiaries of Campo Austral, as a result of the conclusion of the merger process started a November 01, 2016.

⁽ⁿ⁾       On May 25, 2017, subsidiary TBQ Foods GmbH acquired 79.48% of the shares issued by Banvit Bandirma Vitaminli Yem Sanayii A.S..

^(o)       On June 21, 2017, change name and corporate purpose of K&S Alimentos S.A. to BRF Pet S.A..

^(p)       On August 11, 2017, concluded the acquisition of part of the shares issued by Banvit Bandirma Vitaminli Yem Sanayii S.A., and thus holds 91.71% of the equity interest.

^(q)       On December 11, 2017, change in equity interest of the Sadia Overseas Ltd.

1.2.       Business combination with Qatar Investment Authority ("QIA")

On January 9, 2017, BRF has entered into a share purchase agreement with the controlling shareholders of Banvit Bandirma Vitaminli Yem Sanayii A.Ş. (“Banvit” and “Shareholders”), for the acquisition of 79.5% of the shares issued by Banvit (“Shares”), the largest poultry producer in Turkey.

On May 25, 2017, Qatar Investment Authority (“QIA”), the sovereign wealth fund of the State of Qatar, acquired 40% of participation in the TBQ Foods GmbH (“TBQ”), a subsidiary of BRF.  On the same date, TBQ celebrated a share purchase agreement with the controlling shareholders of Banvit, and on August 11, 2017, concluded the mandatory tender offer to non-controlling shareholders, acquiring an equity interest equivalent to 91.71%. The total value of the transaction was R$1,277.7 (Note 6.1.2).

1.3.       Corporate reorganization One Foods Holdings Ltd. (“One Foods”)

On January 11, 2017, BRF established a new wholly-owned subsidiary, One Foods, based in Dubai, which will focus on predominantly Muslim markets.

The constitution of this subsidiary involved a restructuring that included: i) sale and purchase agreement on which One Foods acquired from BRF GmbH, BRF wholly-owned subsidiary, certain equity interest in entities that serve the Halal Business (for further details refer to note 1.1); and ii) contribution of the equity interest in SHB Indústria e Comércio de Alimentos (“SHB”) to One Foods. SHB holds grain storage facilities, feed mills, outgrowers (outsourced farmers) agreements, hatcheries and 8 slaughtering and processing plants in Brazil.

In addition, BRF entered into certain agreements with One Foods that provide for the licensing of certain brands, operational and corporate activities cost sharing and supply of raw materials and finished goods (note 30).

1.4.       Business Combination – Banvit Bandirma Vitaminli Yem Sanayii Anonim Sirketi (“Banvit”)

On May 25, 2017, BRF has concluded the acquisition of Banvit, one of the largest poultry producers in Turkey. In line with Company’s continuous commitment to the Muslim markets, this acquisition allows One Foods to entry into the Turkish market, which has one of the largest poultry Halal consumption in the world (Note 6.1.2 and 6.1.3).

1.5.        Weak Flesh Operation

The Brazilian authorities are investigating Brazil’s meat processing industry in the so called “Weak Flesh Operation,” which became public on March 17, 2017. The investigation involves a number of companies in the industry in Brazil.

On March 17, 2017, BRF became aware of a decision issued by a federal judge of the 14th Federal Court of Curitiba - Paraná, authorizing the search and seizure of information and documents of BRF, and the detention of certain individuals in the context of this Weak Flesh Operation. Two BRF employees were detained (both currently has been released) and three were identified for questioning.

In addition to the above, the Mineiros plant was temporarily suspended by the Ministry of Agriculture, Livestock and Food Supply (“MAPA”) on March 17, 2017, so that MAPA could conduct an additional audit on the production process of such plant. After conducting an audit, the MAPA authorized the Mineiros plant to resume operations as of April 8, 2017. The Mineiros plant reopened and resumed its operations on April 11, 2017.

On April 15, 2017, the Brazilian Federal Police issued a report on the investigation and recommended charges against three BRF employees. On April 20, 2017, based on the Brazilian Federal Police investigation, Brazilian federal prosecutors filed charges against two BRF employees (one BRF regional manufacturing officer and one BRF corporate affairs manager). On April 24, 2017, the federal judge of the 14th Federal Court of Curitiba - Paraná, accepted the charges filed. Based on the charges filed against such two employees, the main allegations at this stage involve alleged misconduct relating to improper offers and/or promises to government inspectors.

BRF informed certain regulators and governmental entities, including the U.S. Securities and Exchange Commission and U.S. Department of Justice in relation to Weak Flesh Operation and are cooperating with authorities.

BRF's Statutory Audit Committee has initiated an investigation with respect to the allegations involving BRF employees in the Weak Flesh Operation and it involved outside counsel. The investigation is substantially concluded and the results obtained have not indicated necessary adjustments in the Financial Statements. The effects of the Weak Flesh Operation had operational consequences for the Company, which incurred expenses in the amount of R$157.5 recorded in other operating expenses, such as media and communication expenses, lawyers fees, freight, storage, among other in the amount of R$80.3 (note 33) and inventory losses, arising from closed external markets and/or blocked products in the amount of R$77.2, recorded in the 2^nd quarter.

Additionally, in the 4^th quarter, the Company also redirected inventories of finished products for use as raw material, generating a complementary provision for adjustment to realizable value in the amount of R$205.9, recorded as other operating results.

1.6.        Tax Amnesty Program (“PERT”)

The Company joined to the Tax Amnesty Program, which was established through Provisional Measures No. 783 of May 31, 2017 and No. 798 of August 31, 2017, regulated by the Normative Instruction issued by Brazilian Federal Revenue Office ("RFB") No. 1,711 of June 16, 2017 and No. 1,733 of August 31, 2017 and by the Ordinance issued by the National Treasury Attorney's Office No. 690 of June 29, 2017, amended by Ordinance Administrative No 1,032, of October 25, 2017 , that provides for a Tax Amnesty Program ("Provisional Measures").

BRF has included in the Tax Amnesty Program certain PIS, COFINS and CSLL debts ("tax debts") which were being executed by the competent government body, as the compensation of the tax debts with certain IPI credits was not accepted by RFB.

The nominal value of these debts was R$454.6, of which 20% were paid in monthly installments until December 2017, and the remaining balance will be paid in 145 monthly installments, with the reductions set out in the respective Provisional Measures. In addition, R$117.8 were already recorded as part of the provision for tax, labor and civil risks.

As a consequence of the withdrawal of the judicial suit mentioned above, the asset related to the IPI premium credit was recognized as recoverable taxes in the amount of R$ 640.6.

It is estimated that such credits will be realized in the long term, as the enforcement action is terminated and the credits cleared for compensation and/or issue of special judicial orders.

Considering the net effect of the debts entered in Tax Amnesty Program, including reductions by the program, the provisions already recorded, the recognized tax assets of the active processes, attorney's fees and taxation of the gain, the Company recorded a gain of R$154.6 in other operating income and R$315.5 in financial income, which include the cumulative effects of the current and previous years.

In addition, the Company joined Tax Amnesty Program for other debts discussed within the scope of the RFB, in the form of settlement of the balance by offsetting tax loss carryforwards and negative basis. The effect recorded was a loss of R$7.0 in other operating expenses and R$13.4 in the financial expenses.

The net effect of the Tax Amnesty Program recorded was a gain of R$147.7 in other operating income (note 33) and R$302.1 in financial income (note 34).

1.7.        Seasonality

In Brazil and Southern Cone operating segments, in months of November and December of each year, the Company is impacted by seasonality due Christmas and New Year’s Celebrations, being the best-selling products in this period: turkey, Chester®, ham and pork loins.

In One Foods operating segment, seasonality is due to Ramadan, which is the holy month of the Muslim Calendar. The start of Ramadan depends on the beginning of the moon cycle and therefore can vary each year.

XML

2. MANAGEMENT'S STATEMENT AND BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2017

Managements Statement And Basis Of Preparation And Presentation Of Financial Statements

MANAGEMENT'S STATEMENT AND BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

2. MANAGEMENT’S STATEMENT AND BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

The Company’s consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”).

The Company’s consolidated financial statements are expressed in millions of Brazilian Reais (“R$”), as well as the amounts of other currencies disclosed in the financial statements. Amounts disclosed in Brazilian Reais are informed when applicable.

The preparation of the Company’s financial statements requires Management to make judgments, use estimates and adopt assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, as well as the disclosures of contingent liabilities, as of the reporting date. However, the uncertainty inherent to these judgments, assumptions and estimates could result in material adjustments to the carrying amount of the affected assets and liabilities in future periods.

The Company reviews its judgments, estimates and assumptions on a quarterly.

The consolidated financial statements were prepared on the historical cost basis except for the following items which are measured at fair value:

i. derivative and non-derivative financial instruments measured at fair value;

ii. available for sale financial assets at fair value;

iii. marketable securities classified as cash and cash equivalents measured at fair value;

iv. share-based payments and employee benefits at fair value, and

v. biological assets at fair value.

The Company’s Management notes that the consolidated financial statements were prepared considering the continuing capacity of the Company’s operating activities, demonstrated through several acquisitions and maintenance of its operations in the operating segments in which it operates.

In addition, all the relevant information was disclosed in the explanatory notes, in order to clarify and complement the accounting basis used in the preparation of the financial statements and used by the Management.

XML

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1. Consolidation: includes the BRF’s individual financial statements and the financial statements from subsidiaries where BRF has direct or indirect control. All transactions and balances between BRF and its subsidiaries have been eliminated upon consolidation, as well as the unrealized profits or losses arising from transactions between the Company and its subsidiaries. Non-controlling interest is presented separately.

3.2. Functional currency and foreign currency transactions: the financial statements of each subsidiary included in consolidation are prepared using the currency of the main economic environment where it operates.

The financial statements of foreign subsidiaries are translated into Brazilian Reais in accordance with their functional currency using the following criteria:

Foreign subsidiaries with functional currency – Argentine Peso, Bath, Chilean Peso, Dirham, Euro, Forint Hungary, Hong Kong Dollar, Kwait Dinar, Oman Riyal, Pound Sterling, Rande Africa, Renminbi Yuan China, Ringgit Malaysia, Riyal Saudi Arabia, Riyal Qatar, Romanian Leu, Ruble Russia, Singapore Dollar, Turkish Lira, Uruguayan Peso, U.S. Dollar, Vietnamere Dong, Won South Korea and Yen.

· Assets and liabilities are translated at the exchange rate in effect at year-end;

· Statement of income accounts are translated based on the monthly average rate; and

· The cumulative effects of gains or losses upon translation are recognized as Accumulated Foreign Currency Translation Adjustments component of other comprehensive income.

Foreign subsidiaries with functional currency – Brazilian Reais

· Non-monetary assets and liabilities are translated at the historical rate of the transaction;

· Monetary assets and liabilities are translated at the exchange rate in effect at year-end;

· Statement of income accounts are translated based on monthly average rate;

· The cumulative effects of gains or losses upon translation of monetary assets and liabilities are recognized in the statement of income; and 

· The cumulative effects of gains or losses upon translation of non-monetary assets and liabilities are recognized in the other comprehensive income.

As a result of the Company’s organizational change, as disclosed in note 1.3 Corporate reorganization One Foods Holdings Ltd., the functional currency of some of the Company’s subsidiaries was changed for the year ended December 31, 2017, and treated in a prospective manner, as explained in IAS 21.

Goodwill arising from business combination with entities in foreign market is expressed in the functional currency of that entity and converted by the closing exchange rate for the reporting currency of the acquirer, with the effects recognized in other comprehensive income.

The accounting policies have been consistently applied by all subsidiaries included in consolidation.

3.3. Investments: investments in associates and joint ventures are initially recognized at cost and adjusted thereafter for the equity method. In the investments in associates, the Company must have significant influence, which is the power to participate in the financial and operating policy decisions of the investee, without having its control or joint control of those policies. In investments in joint ventures there is a contractually agreed sharing of control through an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

3.4. Business combinations: are accounted for using the purchase method. The cost of an acquisition is the sum of the consideration paid, evaluated based on the fair value at acquisition date, and the amount of any non-controlling interests in the acquiree. For each business combination, the Company recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. Costs directly attributable to the acquisition are accounted for as an expense when incurred (assets acquired and liabilities assumed, net).

When the investment has simply been moved from one part of the group to another, the acquirer in a common control transaction use book value (carry-over basis) accounting.

When acquiring a business, management evaluate the assets acquired and the liabilities assumed in order to classify and allocate them assessing the terms of the agreement, economic circumstances and other conditions at the acquisition date.

Goodwill is initially measured as the excess of the consideration paid over the fair value of the net assets acquired.

After initial recognition, goodwill is measured at cost, net of any accumulated impairment losses. For purposes of impairment testing, the goodwill recognized in a business combination, as from the acquisition date, is allocated to each of the Company’s cash generating units.

3.5. Segment information: an operating segment is a component of the Company that carries out business activities from which it can obtain revenues and incur expenses. The operating segments reflect how the Company’s management reviews financial information to make decisions. The Company’s management has identified reportable segments, which meet the quantitative and qualitative disclosure requirements. The segments identified for disclosure represent mainly sales channels. The information according to the characteristics of the products is also presented, based on their nature, as follows: poultry, pork and others, processed and other sales.

3.6. Cash and cash equivalents: include cash on hand, bank deposits and highly liquid investments in fixed-income funds and/or securities with maturities, upon acquisition, of 90 days or less, which are readily convertible into known amounts of cash and subject to insignificant risk of change in value. The investments classified in this group, due to their nature, are measured at fair value through the profit and loss.

3.7. Financial instruments: financial assets and liabilities are recorded when the Company becomes party to the contractual provisions of the instruments and classified into the following categories: marketable securities, loans, receivables, derivatives and other.

3.7.1. Marketable securities: are financial assets that comprise public and private fixed-income securities, classified and recorded based on the purpose for which they were acquired, in accordance with the following categories:

· Trading securities: acquired for sale or repurchase in the short term, recorded at fair value with variations directly recorded in the statement of income for the year within interest income or expense;

· Held to maturity: when the Company has the intention and ability to hold them up to maturity, investments are recorded at amortized cost, plus interest, monetary and exchange rate changes, when applicable, and recognized in the statement of income when incurred, within interest income or expense; and

· Available for sale: this category is for the remaining securities that are not classified in any of the categories above, which are measured at fair value, with changes to fair value recorded in other comprehensive income while the asset is not realized, net of taxes. Interest and monetary and exchange variation, when applicable, are recognized in the statement of income when incurred within interest income or expense.

3.7.2. Derivative financial instruments measured at fair value: are those actively traded on organized markets and OTC derivatives. Fair value is determined based on the amounts quoted on an active market at the balance sheet date or through models that utilize observable market inputs. These financial instruments are initially recognized at fair value and classified as derivative financial instruments, and the variation of the fair value is recognized in the statement of income.

3.7.3. Hedge accounting transactions: the Company utilizes derivative and non-derivative financial instruments, to hedge the exposure to exchange rate and interest variations or to modify the characteristics of financial assets and liabilities and highly probable transactions, which are: (i) highly correlated to changes in the fair value of the item being hedged, both at inception and throughout the term of the contract (effectiveness between 80% and 125%); (ii) supported by documents that identify the transaction, the hedged risk, the risk management process and the methodology used to assess effectiveness; and (iii) considered effective in the mitigation of the risk associated with the hedged exposure. These transactions are accounted for in accordance with IAS 39.

Hedges that meet the criteria of hedge accounting are recorded as cash flow hedge, fair value hedge or hedge of foreign net investment, and the latter is not practiced by the Company.

In a cash flow hedge, the effective portion of the gain or loss on the hedging instrument is recognized as other comprehensive income, while the ineffective portion of the hedge is recognized immediately as financial income or expense.

The amounts recorded as other comprehensive income are immediately transferred to the statement of income when the hedged transaction affects the statement of income.

If the occurrence of the forecasted transaction or firm commitment is no longer expected, the amounts previously recognized in other comprehensive income are transferred to the statement of income. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its classification as a hedge is revoked, the gains or losses previously recognized remain recorded in other comprehensive income until the forecasted transaction or firm commitment affect the statement of income.

In a fair value hedge, the effective portion of the gain or loss on the hedging instrument is recognized into income statement at the same time as the hedge object’s fair value variation. When the hedge object is a firm commitment, the amount initially recorded of the asset or liability is adjusted with the gain or loss.

3.7.4. Loans and receivables: these are financial assets with fixed or determinable payments. Such assets are initially recognized at fair value plus any attributable transaction costs. After initial recognition, loans and receivables are measured at amortized cost under the effective interest rate method, less any impairment losses.

3.7.5. Financial liabilities non-derivatives: the liabilities are initially recognized at fair value deducted any transaction costs directly attributable. After initial recognition, these financial liabilities are measured at amortized cost using effective interest method.

3.8. Adjustment to present value: the Company measures the adjustment to present value of outstanding balances of non-current trade accounts receivable, trade payables and other non-current liabilities, being recorded in accounts reducing their lines on the other hand financial result. The Company adopts the weighted average of the cost of funding to determine the adjustment to present value to those assets and liabilities, which corresponds to annual rate of 12.70% (14.30% p.a. on December 31, 2016).

3.9. Trade accounts receivables and other receivables: are recorded at the invoiced amount and adjusted to present value, when applicable, net of allowance for doubtful accounts.

The Company adopts procedures and analysis to establish credit limits and substantially does not require collateral from customers. In the event of default, collection attempts are made, which include direct contact with customers and collection through third parties. Should these efforts prove unsuccessful, court measures are considered and the notes are reclassified to non-current assets at the same time an allowance is recognized. The notes are written-off from the allowance when management considers that they are not recoverable after taking all appropriate measures to collect them.

3.10. Inventories: are evaluated at average acquisition or formation cost, not exceeding their net realizable value. The cost of finished products includes raw materials, labor, cost of production, transport and storage, which are related to all process needed to make the products ready for sale. Provisions for obsolescence, adjustments to net realizable value, impaired items and slow-moving inventories are recorded when necessary. Usual production losses are recorded and are an integral part of the production cost of the respective month, whereas abnormal losses, if any, are recorded as other operating expense.

3.11. Biological assets: The consumables and production biological assets (live animals) and the forest are measured at their fair value, being applied the cost approach technique to live animals and market approach to the forest. In the determination of the live animal’s fair value, all the inherent losses to the production process were considered.

3.12. Assets held for sale and discontinued operations: Such assets are measured at carrying amount or fair value less costs to sell, whichever is lower, and are not depreciated or amortized. Such items are only classified under this heading when the sale is highly probable and they are available for immediate sale under their current conditions.

The income statement and cash flows from discontinued operations are presented separately from those of continuing operations of the Company.

3.13. Property, plant and equipment: stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, when applicable. The borrowing costs are capitalized as a component of construction in progress, pursuant to IAS 23, considering the weighted average interest rate of the Company’s debt at the capitalization date.

Depreciation is recognized based on the estimated economic useful life of each asset on a straight-line basis. The estimated useful life, residual values and depreciation methods are annually reviewed and the effects of any changes in estimates are accounted for prospectively. Land is not depreciated.

The Company annually performs an analysis of impairment indicators of property, plant and equipment. The recoverability of these assets was tested for impairment in 2017, and no adjustments were identified. The realization of the test involved the adoption of assumptions and judgments, as disclosed in note 18. In accordance with IAS 36, an impairment for loss for property, plant and equipment, is only recognized if the related cash-generating unit is devalued. Such condition is also applied if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of asset or cash-generating unit is the greater of its value in use and its fair value less cost to sell.

Gains and losses on disposals of property, plant and equipment items are calculated by comparing the proceeds of the disposals with their net book values and recognized in the statement of income at the disposal date.

3.14. Intangible assets: Intangible assets acquired are measured at cost at the time they are initially recognized. The cost of intangible assets acquired in a business combination corresponds to the fair value at the acquisition date. After initial recognition, intangible assets are presented at cost less accumulated amortization and impairment losses, when applicable. Internally-generated intangible assets, excluding development costs, are not capitalized but recognized in the statement of income as incurred.

The useful life of intangible assets is assessed as finite or indefinite.

Intangible assets with a finite life are amortized over the economic useful life and reviewed for impairment whenever there is an indication that their carrying values may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at least at the end of each fiscal year. The amortization of intangible assets with a finite useful life is recognized in the statement of income as an expense consistently with the economic useful life of the intangible asset.

Intangible assets with an indefinite useful life are not amortized, but are tested annually for impairment on an individual basis or at the cash generating unit level. The Company records goodwill and trademarks as intangibles assets with indefinite useful life.

Goodwill recoverability was tested for fiscal year 2017 and no impairment loss was identified. Such test involved the adoption of assumptions and judgments, disclosed in note 18.

3.15. Income taxes: in Brazil, are comprised of corporate income tax (“IRPJ”) and social contribution tax (“CSLL”), which are calculated monthly on taxable income, at the rate of 15% plus 10% surtax for IRPJ, and of 9% for CSLL, considering the offset of tax loss carryforwards, up to the limit of 30% of annual taxable income.

The income from foreign subsidiaries is subject to taxation pursuant to the local tax rates and legislation. In Brazil, these incomes are taxed according to the Law 12.973/14, respecting the tax treaty signed by each country with Brazil in order to avoid double taxation.

Deferred taxes are recorded on IRPJ and CSLL tax losses, and on temporary differences between the tax basis and the carrying amount on assets and liabilities and classified as non-current assets, as required by IAS 01. When the Company’s analysis indicates that the realization of these credits is not probable, the deferred taxes are derecognized.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity. In the consolidated financial statements, the Company’s tax assets and liabilities can be offset against the tax assets and liabilities of the subsidiaries if, and only if, these entities have a legally enforceable right to make or receive a single net payment and intend to make or receive this net payment, or recover the assets and settle the liabilities simultaneously. Therefore, for presentation purposes, the balances of tax assets and tax liabilities are being disclosed separately.

Deferred tax assets and liabilities must be measured by enacted or substantially enacted rates that are expected to be applicable for the period when the assets are realized and liabilities settled.

3.16. Accounts payable and trade accounts payable: are initially recognized at fair value plus any accrued charges, monetary and exchange variations incurred through the balance sheet date.

3.17. Provision for tax, civil and labor risks and contingent liabilities: are established when the Company has a present obligation, formalized or not, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and its amount can be reliably estimated.

The Company is part of various lawsuits, including, tax, labor and civil claims, mainly in Brazil. The assessment of the likelihood of an unfavorable outcome in these lawsuits includes the analysis of the available evidence, the hierarchy of the laws, available prior court decisions, as well as the most recent court decisions and their importance to the Brazilian legal system, as well as the opinion of external legal counsel. The provisions are reviewed and adjusted to reflect changes in the circumstances, such as the applicable statute of limitation, conclusions of tax inspections or additional exposures identified based on new claims or court decisions.

A contingent liabilities of business combinations are recognized if they arise from a present obligation that arose from past events and if their fair value can be measured reliably and subsequently are measured at the higher of:

· the amount that would be recognized in accordance with the accounting policy for the provisions above that comply with IAS 37; or

· the amount initially recognized less, if appropriate, cumulative amortization recognized in accordance with IAS 18.

As a result of the business combinations with Sadia, Avex and Dánica group the Company recognized contingent liabilities related to tax, civil and labor claims.

3.18. Leases: lease transactions in which the risks and rewards of ownership are substantially transferred to the Company are classified as finance leases. When there is no significant transfer of the risks and rewards of ownership, lease transactions are classified as operating leases.

Finance lease agreements are recognized in property, plant and equipment and in liabilities at the lower of the present value of the minimum future payments of the agreement and the fair value of the asset, including, when applicable, the initial direct costs incurred in the transaction. The amounts recorded in property, plant and equipment are depreciated and the underlying interest is recorded in the statement of income in accordance with the terms of the lease agreement.

Operating lease agreements are recognized as straight-line expenses throughout the lease terms.

3.19. Share based payments: the Company provides share based payments restricted stock for its executives, which are settled with Company shares. The Company adopts the provisions of IFRS 2, recognizing as an expense, on a straight-line basis, the fair value of the options granted, over the length of service required by the stock options plan or share, with a corresponding entry to equity. The accumulated expense recognized reflects the acquired vesting period and the Company's best estimate of the number of shares to be acquired.

The expense or income arising from the movement during the year is recognized in the statement of income under other operating expense or income. Expense is reversed/trued up in case of failure to satisfy a service vesting condition (forfeiture).

The effect of outstanding options is reflected as additional dilution in the calculation of diluted earnings per share.

3.20. Pension and other post-employment plans: the Company sponsors four supplementary defined benefit and defined contribution plans, as well as other post-employment benefits, for which, an actuarial appraisal is annually prepared by an independent actuary and is reviewed by management. The cost of defined benefits is established separately for each plan using the projected unit credit method.

The measurements comprise the actuarial gains and losses, the effect of a limit on contributions and returns on plan assets, are recognized in the balance sheet with a contra entry in other comprehensive income when incurred. These measurements are not reclassified to statement of income in subsequent periods.

The Company recognizes the net defined benefit asset, when:

·       controls a resource and has the ability to use the surplus to generate future benefits;

·       the control is a result of past events; and

·       the future economic benefits are available to the Company in the form of a reduction in future contributions or a cash refund, either directly to the Company or indirectly to another deficitary plan. The asset ceiling is the present value of those future benefits.

The past service cost is recognized in the statement of income at the earliest of the following dates:

· when the plan amendment or curtailment occurs, or

· when the Company recognizes related restructuring costs.

The past service cost and net interest on net defined benefit liability or asset are recognized in the statement of income within other operating expense or income.

3.21. Earnings (Losses) per share: basic earnings (losses) per share are calculated by dividing the net profit attributable to the holders of ordinary shares of the Company by (losses) the weighted average number of ordinary shares during the year. Diluted earnings per share are calculated by dividing the net profit (loss) attributable to the holders of ordinary shares of the Company by the weighted average number of ordinary shares during the year, plus the weighted average number of ordinary shares that would be issued when converting all dilutive potential ordinary shares into ordinary shares.

3.22. Revenue recognition: revenues comprise the fair value of consideration received or receivable from the sale of products, net of taxes, returns, rebates and discounts.

Revenues are recognized when the sales value is reliably measurable and when the Company no longer has control over the goods sold, or otherwise any involvement related to the ownership, the costs incurred or to be incurred due to transaction can be reliably measured, it is probable that economic benefits will be received by the Company and the risks and benefits were fully transferred to the purchaser.

3.23. Employee and management profit sharing: employees are entitled to profit sharing based on certain targets agreed upon on an annual basis, whereas directors are entitled to profit sharing based on the provisions of the bylaws, proposed by the Board of Directors and approved by the shareholders. The profit sharing amount is recognized in the statement of income for the period in which the targets are attained.

3.24. Financial income and expenses: include interest earnings on amounts invested (including available for sale financial assets held to maturity, held for trading and cash and cash equivalents), dividend income (except for dividends received from equity investees), gains on disposal of available for sale financial assets, exchange rate  variation on assets (situations in which there is a devaluation of the national currency against the currency of the asset in question), changes in fair value of financial assets measured at fair value through profit or loss, adjustment to present value (trade accounts receivable, notes receivable, short-term debt and trade accounts payable), gains and losses on hedging instruments that are recognized in income, interest on loans and financing and monetary variation on contingencies and tax credits. Interest income is recognized in earnings through the effective interest method.

3.25. Grants and government assistance: government subsidies are recognized at fair value when there is reasonable assurance that the conditions established are met and related benefits will be received. The amounts recorded in the statement of income when excluded from the income tax and social contribution calculation basis are transferred in shareholders’ equity, as a reserve of tax incentives, unless there are accumulated losses.

3.26. Dividends and interest on shareholders’ equity: the proposal for payment of dividends and interest on shareholders’ equity made by the Company’s Management, which is within the portion equivalent to the mandatory minimum dividend, is recorded in current liabilities, as a legal obligation provided for in the bylaws; on the other hand, the dividends that exceed the mandatory minimum dividend, declared by management before the end of the accounting period covered by the consolidated financial statements, not yet approved by the shareholders, is recorded as additional dividend proposed in shareholders’ equity.

For financial statement presentation purposes, interest on shareholders’ equity is stated as dividends directly in shareholders’ equity.

3.27. Transactions and balances in foreign currency: the transactions in foreign currency are translated into the functional currency of the company using the exchange rates at the transaction date. Balances of monetary items denominated in foreign currency are translated using the exchange rates in effect at the balance sheet date or settlement, being the gains or losses on exchange rate variation recognized as financial result.

The exchange rates in Brazilian Reais effective at the balance sheet dates were as follows:

Exchange rate at the balance sheet date	12.31.17	12.31.16
Bath (THB)	0.1015	0.0911
Kwait Dinar (KWD)	10.9791	10.6751
Dirham (AED)	0.9006	0.8875
Singapore Dollar (SGD)	2.4753	2.2572
U.S. Dollar (US$ or USD)	3.3080	3.2591
Euro (€ or EUR)	3.9693	3.4384
Forint Hungary (HUF)	0.0128	0.0111
Yen (JPY)	0.0294	0.0279
Pound Sterling (£ or GBP)	4.4714	4.0364
Turkish Lira (TRY)	0.8752	0.9258
Argentine Peso ($ or ARS)	0.1755	0.2056
Chilean Peso (CLP)	0.0054	0.0049
Uruguayan Peso (UYU)	0.1149	0.1122
Rande Africa (ZAR)	0.2690	0.2379
Renminbi Yuan China (CNY)	0.5087	0.4695
Saudi Riyal (SAR)	0.8821	0.8689
Qatar Riyal (QAR)	0.9088	0.8951
Omani Riyal (OMR)	8.6011	8.4718
Ringgit Malaysia (MYR)	0.8180	0.7267
Ruble Russia (RUB)	0.0574	0.0534
Won South Korea (KRW)	0.0031	0.0027
Average rates
Bath (THB)	0.0942	0.0989
Kwait Dinar (KWD)	10.5318	11.5548
Dirham (AED)	0.8692	0.9503
Singapore Dollar (SGD)	2.3130	2.5261
U.S. Dollar (US$ or USD)	3.1920	3.4901
Euro (€ or EUR)	3.6071	3.8615
Forint Hungary (HUF)	0.0117	0.0124
Yen (JPY)	0.0285	0.0321
Pound Sterling (£ or GBP)	4.1150	4.7464
Turkish Lira (TRY)	0.8759	1.1593
Argentine Peso ($ or ARS)	0.1934	0.2373
Chilean Peso (CLP)	0.0049	0.0052
Uruguayan Peso (UYU)	0.1115	0.1158
Rande Africa (ZAR)	0.2401	0.2372
Renminbi Yuan China (CNY)	0.4726	0.5261
Saudi Riyal (SAR)	0.8512	0.9307
Qatar Riyal (QAR)	0.8727	0.9586
Omani Riyal (OMR)	8.2977	9.0721
Ringgit Malaysia (MYR)	0.7435	0.8433
Ruble Russia (RUB)	0.0548	0.0521
Won South Korea (KRW)	0.0028	0.0030

3.28. Accounting judgments, estimates and assumptions: as mentioned in note 2, in the process of applying the Company’s accounting policies, management made the following judgments which have a material impact on the amounts recognized in the consolidated financial statements:

·       fair value of financial instruments (note 4);

·       impairment of non-financial assets (note 5 and 18);

·       measurement of fair value of items related to business combinations (note 6);

·       allowance for doubtful accounts (note 9);

·       net realizable value provision for inventories (note 10);

·       fair value of biological assets (note 11);

·       loss on the reduction of recoverable value of taxes (note 12 and 13);

·       useful lives of property, plant and equipment and intangible (note 17 and 18);

·       share-based payment transactions (note 24);

·       pension and post-employment plans (note 25);

·       provision for tax, civil and labor risks (note 26); e

·       definition of the moment when significant risks and rewards of ownership are transferred in recognizing revenue.

The Company reviews the estimates and underlying assumptions used in its accounting estimates on a quarterly basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

12 Months Ended

Dec. 31, 2017

Financial Instruments And Risk Management

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

4.            FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

4.1.        Overview

In the normal course of its business, the Company is exposed to credit, liquidity and market risks, which are actively managed in conformity to the Financial Risk Management Policy and Strategy Papers (this set called hereafter as “Risk Policy”) and internal guidelines subject to such policy.

The Risk Policy is under the management of the Board of Directors, Risk Management Committee and Financial Risk Management, with clear and defined roles and responsibilities, as follows:

·         The Board of Directors is responsible for approving the Risk Policy and defining the limits of tolerance of the different risks identified as acceptable for the Company on behalf of its shareholders. The current risk policy was reviewed and approved on November 26, 2015, with maturity of two years, which was automatically renewed for the same period since there was no express change;

·         The Financial Risk Management Committee formally and subordinated to the Executive Board, is in charge of the execution of the Risk Policy, which comprises the supervision of the risk management process, planning and verification of the impacts of the decisions implemented, as well as the evaluation and approval of hedging strategies and monitoring the risk exposure levels to ensure compliance with Risk Policy; and

·         The Risk Management area has a crucial role in monitoring, evaluating and reporting of the financial risks taken by the Company.

The Risk Policy does not authorize the Company’s management to contract leveraged derivative transactions and determines that any individual hedge operations (notional amount) must not exceed 2.5% of the Company’s shareholders’ equity. The contracting of derivatives is exclusively for hedge purposes.

a.            Credit risk management

The Company is subject to the credit risk related to trade accounts receivable, marketable securities, derivative contracts and cash and cash equivalents.

Credit risk associated with trade accounts receivable is actively managed through the use of specific systems. Furthermore, it should be noted the diversification of the customer portfolio and the concession of credit to customers with good financial and operational conditions. The Company does not usually require collateral for sales to customer, and has a contracted credit insurance policy for specific markets.

Credit risk associated with marketable securities, cash and cash equivalents and derivative contracts is limited to the counterparties listed below and is managed according to the rating and concentration of the Company’s portfolio.

On December 31, 2017, the Company had financial investments over R$100.0 at the following financial institutions: Banco Bradesco, Banco do Brasil, Banco HSBC, Banco Itaú, Banco Safra, Banco Santander, Caixa Econômica Federal, Citbank and JP Morgan.

The Company also held derivative contracts with the following financial institutions: Banco Bradesco, Banco do Brasil, Banco Itaú, Banco Santander, Banco Votorantim, Citibank, Deutsche Bank, Merrill Lynch, Morgan Stanley e Rabobank.

b.            Liquidity risk management

Liquidity risk management aims to reduce the impacts caused by events which may affect the Company’s cash flow. Thus, the Company utilizes the following metrics:

·         Cash Flow at Risk (“CFaR”), which aims to statistically estimates the cash flows for the next 12 months and the Company’s liquidity exposure. The Company determined that the minimum cash available should be equivalent mainly to the average monthly billing and Earning Before Income, Tax, Depreciation and Amortization (“EBITDA”) for the last twelve-month period; and

·         Value at Risk ("VaR") is used to measure the risk of variations in the fair value of the derivatives, determining statistically the potential maximum adjustments in intervals of 1 to 21-days.

The Company maintains its leverage levels in order to avoid any impact to its ability to settle commitments and obligations. As a guideline, the majority of the debt should be in long-term. On December 31, 2017, the long-term debt portion accounted for 75.4% (82.9% as of December 31, 2016) of the total outstanding debt with an average term greater than 4 years.

The table below summarizes the commitments and contractual obligations that may impact the Company’s liquidity:

	12.31.17
	Book value	Cash flow contracted	2018	2019	2020	2021	2022	2023 onwards
Non derivative financial liabilities
Loans and financing	11,410.7	11,953.8	4,533.2	4,459.4	1,337.1	99.5	720.7	803.9
BRF bonds	4,479.2	5,262.4	662.3	143.0	143.0	143.0	2,508.2	1,663.0
BFF bonds	292.2	336.4	20.6	20.6	295.1	-	-	-
BRF GMBH bonds	1,628.9	2,301.5	71.9	71.9	71.9	71.9	71.9	1,941.8
Quickfood bonds	168.0	265.9	57.5	89.5	60.6	43.6	14.7	-
SHB bonds	2,465.4	3,247.0	117.8	117.8	117.8	117.8	117.8	2,657.8
Trade accounts payable	6,445.5	6,445.5	6,445.5	-	-	-	-	-
Supply chain finance	715.2	715.2	715.2	-	-	-	-	-
Financial lease	232.6	352.8	72.5	63.5	45.4	29.4	24.4	117.6
Operational lease	-	655.6	374.9	76.8	44.6	34.5	31.7	93.0
Derivative financial liabilities
Financial instruments designated as cash flow hedge
Swap (Interest  rate and exchange rate)	166.3	166.4	166.1	0.3	-	-	-	-
Currency derivatives (NDF)	6.8	10.3	10.3	-	-	-	-	-
Commodities derivatives - Corn (NDF)	4.6	5.0	5.0	-	-	-	-	-
Commodities derivatives - Soybean meal (NDF)	3.0	3.0	3.0	-	-	-	-	-
Commodities derivatives - Soybean oil (NDF)	0.1	0.1	0.1	-	-	-	-	-
Currency derivatives (options)	25.9	0.5	0.5	-	-	-	-	-
Commodities derivatives - Corn (NDF)	0.6	-	-	-	-	-	-	-
Commodities derivatives - Soybean (Options)	1.5	0.2	0.2	-	-	-	-	-
Financial instruments not designated as cash flow hedge
Currency derivatives (NDF)	2.0	9.4	9.4	-	-	-	-	-
Currency derivatives (Future)	0.2	0.2	0.2	-	-	-	-	-
Swap (index / currency / stocks)	86.5	86.4	57.6	28.8	-	-	-	-
Commodities derivatives (Future)	2.0	-	-	-	-	-	-	-

c.            Interest rate risk management

Interest rates risk is the one the Company incurs in economic losses resulting from changes in these rates, which could affect its assets and liabilities.

The Company’s Risk Policy does not restrict exposure to different interest rates, neither establishes limits for fixed or floating rates. However, the Company continually monitors the market interest rates, in order to evaluate any need to enter into hedging transaction to protect from the exposure to fluctuation of such rates and manage the mismatch between its financial investments and debts. In these transactions, the Company enters into contracts that exchange floating rate for fixed rate or vice-versa. Such transactions were designated by the Company as cash flow hedge.

The Company’s indebtedness is essentially tied to the London Interbank Offered rate ("LIBOR"), fixed coupon (“R$ and USD”), Interbank Deposit Certificate (“CDI”) and Amplified Consumer Price Index (“IPCA”). In case of adverse changes in the market that result in LIBOR, CDI and IPCA hikes, the cost of the floating indebtedness rises and on the other hand, the cost of the fixed indebtedness decreases in relative terms.

With regards to the Company's marketable securities, the main index is the Interbank Deposit Certificate ("CDI") for investments in Brazil and fixed coupon (“USD”) for investments in the Foreign market.

d.            Foreign exchange risk management

Foreign exchange risk is the one related to variations of foreign exchange rates that may cause the Company to incur unexpected losses, leading to a reduction of assets or an increase in liabilities.  

The Risk Policy is intended to protect the Company's results from these variations, in order to:

·         Protect operating revenues and costs that are related to transactions arising from commercial activities, such as estimated exports and purchases of raw materials, utilizing hedging instruments, that is, to protect its future cash flow denominated in foreign currency; and

·         Manage assets and liabilities denominated in foreign currencies in order to protect the balance sheet of the Company, through the use of over-the-counter and futures transactions.

The Company’s consolidated financial statements are mainly impacted by the following currencies: Argentine Peso, Baht, Yen, Dirham, Euro, Kwait Dinar, Pound Sterling, Riyal Saudi Arabia, Riyal Qatar, Turkish Lira and U.S. Dollar.

Assets and liabilities denominated in foreign currency are as follows, summarized in Brazilian Reais:

	12.31.17	12.31.16
Cash and cash equivalents	278.1	27.7
Trade accounts receivable	862.2	1,512.4
Trade accounts payable	31.4	(707.3)
Loans and financing	(6,136.4)	(5,425.2)
Hedge	3,049.7	3,477.7
Investments, net	1,985.7	441.8
Other assets and liabilities, net	(15.3)	74.8
	-	-
Foreign exchange exposure	55.4	(598.3)

The net exposure is mainly composed of the following currencies:

		31.12.17		31.12.16
Net P&L Exposure	in thousands	Equivalent in thousands of R$	in thousands	Equivalent in thousands of R$
Argentine Pesos	1,066.3	187.1	497.6	102.3
Euros	(41.0)	(162.8)	26.6	91.4
Pound Sterling	2.9	13.1	12.1	48.9
Yen	1,309.7	38.5	2,953.8	82.5
Rubles	1,334.3	76.6	-	-
Turkish Liras	(391.2)	(342.4)	-	-
U.S. Dollars	74.2	245.3	(283.3)	(923.3)
Total		55.4		(598.3)

The Company’s foreign subsidiaries have amounts denominated in Brazilian Reais registered as trade accounts payable, which reduces the exposure to liabilities in foreign currencies registered in Brazil. On December 31, 2017, this effect overcame the amount of trade accounts payable in foreign currencies registered in Brazil, generating an inversion of the trade accounts payable exposure when compared to December 31, 2016. In other situations, this dynamic may also occur for cash and cash equivalents.

The investments, net line item is comprised of natural hedges derived from assets and liabilities of foreign subsidiaries with the Brazilian Reais as functional currency.

The Company has a foreign exchange exposure that impacts shareholders’ equity equivalent to R$5,519.3 on December 31, 2017 (R$4,348.1 on December 31, 2016). This exposure does not contemplate the effects of the financial instruments designated as hedging instruments presented in the note 4.2.1, whose changes in fair value present a temporary effect on shareholders’ equity until the hedge transaction occurs. 

e.            Commodity price risk management

In the normal course of its operations, the Company purchases commodities, mainly corn, soymeal, soybean oil and live hog, which are some of the individual components of production cost.

Corn, soybean meal and soybean oil prices are subject to volatility resulting from weather conditions, crop yield, transportation and storage costs, government’s agricultural policy, foreign exchange rates and the prices of these commodities on the international market, among others factors. The prices of hog acquired from third parties are subject to market conditions and are influenced by internal availability and levels of demand in the international market, among other aspects.

The Risk Policy establishes limits for hedging the corn, soybean meal and soybean oil prices purchase flow, aiming to reduce the impact resulting from a price increase of these raw materials, and may utilize derivative instruments or inventory management for this purpose.  

f.             Capital management

The Company’s definition of the adequate capital structure is essentially associated with (i) cash strength as a tolerance factor to liquidity volatility, (ii) financial leverage and (iii) maximization of the opportunity cost of capital.

The cash and liquidity strategy takes into consideration the historical scenarios of volatility of results as well as simulations of sectorial and systemic crises and is based on permitting the resilience in scenarios of restricted access to capital.

Financial leverage aims the balance between the different sources of funding and their conditions of allocation in order to maximize the opportunity cost to BRF in its business expansion initiatives. Moreover, the objective of maintaining the investment grade disciplines the weighting of using own and third party capital.

The Company monitors debt levels and net debt, which are shown below:

	12.31.17			12.31.16
	Current	Non-current	Total	Total
Foreign currency debt	(1,438.6)	(9,662.8)	(11,101.3)	(10,318.7)
Local currency debt	(3,592.8)	(5,750.3)	(9,343.0)	(8,643.6)
Other financial liabilities	(299.5)	-	(299.5)	(529.6)
Gross debt	(5,330.9)	(15,413.1)	(20,743.8)	(19,491.9)
Marketable securities and cash and cash equivalents	6,239.3	568.8	6,808.1	7,506.9
Other financial assets	90.5	-	90.5	198.0
Restricted cash	127.8	407.8	535.6	645.9
Net debt	1,126.7	(14,436.5)	(13,309.6)	(11,141.1)

4.2.        Derivative and non-derivative financial instruments designated as hedge accounting

As established by IAS 39, the Company applies hedge accounting to its derivative instruments classified as cash flow hedge of highly probable forecasted transactions and fair value hedge of firm commitments, in accordance with the Risk Policy. The cash flow hedge consists of hedging the exposure to variations of the cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit and loss. The fair value hedge of a firm commitment is a protection against fluctuations of a specific type of risk associated to a firm agreement to exchange a determined quantity for a determined price in a specific date, or in specific future determined dates.

The Risk Policy has also the purpose of determining parameters for using financial instruments, including derivatives, which are designated as protection to operating and financial assets and liabilities, which are exposed to the variations of foreign exchange rates, the fluctuation of interest rates and changes to commodity prices. The Risk Management Committee is responsible for ensuring compliance to the requirements established by the Company’s Risk Policy, supported by the Market Risk Management area.

The Company formally designated its operations for hedge accounting treatment for the derivative financial instruments to protect cash flows and export revenues by documenting:

·         The relationship of the hedge;

·         The objective and risk management strategy of the Company to enter into a hedge transaction;

·         The identification of the financial instrument;

·         The hedge object or transaction;

·         The nature of the risk to be hedged;

·         The description of the hedge relationship;

·         The demonstration of the correlation between the hedge transaction and the hedge object, when applicable; and

·         The prospective demonstration of the effectiveness of the hedge.

The transactions for which the Company has designated cash flow hedge accounting are highly probable and present an exposure to variations in cash flow that could affect profit and loss. The transactions for which the Company has designated fair value hedge accounting are firm commitments that present an exposure to variations in the fair value that could affect profit and loss.

The instruments hired for these hedge relations are highly effective in protecting the variations of the fair value or cash flow attributable to the hedged risk. The prospective and retrospective effectiveness tests are prepared at each period end, following the criteria demonstrated below:

·         The prospective test is based on the comparison between the critical terms of the hedging instruments and of the hedged items. The hedged items (future monthly export sales or firm commitments) and the hedge instruments have the same critical terms, as follows:

·         Both fair values change due to the exchange rate or commodities prices variation (spot or forward rate method);

·         Their notional amounts are similar; and

·         Their maturities are identical, both the hedged item and the settlement of the financial instrument will occur at the same period.

·         The retrospective test is based on the comparison of the accumulated variation since the inception between the fair value of the hedging instrument and the fair value of the hedged item. The actual effectiveness of the hedge relation is assessed on the instruments settlement date, by comparing the accumulated change of the expected revenues with the actual gains or losses realized on the financial instrument.

The Company, within its hedge accounting strategy, utilizes the following financial instruments:

a.            Non-deliverable forwards – NDF

Non-deliverable forward contract is the future commitment to purchase or sell certain currencies or commodities on a certain date in the future for a predetermined price. This contract does not require physical settlement of contracted positions, but the financial settlement of the difference between the settlement price and the predetermined price of the contract.

b.            Interest rate and currency swap

Similar to a non-deliverable forward contract, the swap is the future commitment to buy or sell certain interest rates or currency at a specified date in the future for a predetermined price. The particularity in this type of transaction is the possibility to exchange cash flows on several dates. The Company contracts swaps that do not require the physical settlement of contracted positions, but the financial settlement of the difference between the settlement price and the price established in the contract.

c.            Options

A put option (“PUT”) gives to the holder (option holder) the right to buy an asset at a certain price (strike) at certain future date (the exercise date). A call option (“CALL”) gives to the holder the right to sell an asset at a certain price at a certain future date. In addition, there is a possibility of buying (premium disbursement, with rights) or selling (premium receiving, with obligations).

d.            Export prepayments – PPEs

The Company utilizes the exchange rates variation of export prepayments contracts (“PPEs”) as a hedge instrument for the highly probable future sales in foreign currency.

e.            Senior unsecured notes – Bonds

The Company designates part of the transactions involving Senior Unsecured Notes as hedge accounting for its highly probable future sales in foreign currency.

4.2.1 Breakdown of the balances of derivative financial instruments

The positions of outstanding derivative financial instruments are as follows:

			12.31.17		12.31.16
Instrument	Hedge object	Reference currency (notional)	Reference value (notional)	Fair value (1)	Reference value (notional)	Fair value (1)
Financial instruments designated as hedge accounting
NDF - U.S. Dollar sale	Currency	US$	208.4	(3.7)	106.9	6.6
NDF - Euro sale	Currency	EUR	15.0	(0.6)	145.0	56.9
NDF - Pound Sterling sale	Currency	GBP	25.0	(0.9)	34.0	11.1
Currency swap - U.S. Dollar	Currency	BRL	250.0	(153.2)	250.0	(150.8)
Interest rate swap - U.S. Dollar	Interest	US$	100.0	(2.5)	200.0	(11.3)
Options - U.S. Dollar	Currency	US$	361.8	(2.6)	1,322.0	66.8
Options  - Euro	Currency	EUR	-	-	80.0	16.9
NDF - Commodities purchase	Commodities	Ton/US$	598.5	(7.5)	85.0	(0.9)
NDF - Commodities sale	Commodities	Ton/US$	77.7	1.8	308.6	1.8
Future - B3	Commodities	Ton/US$	99.1	0.3	32.0	-
Options (Collar) - Commodities	Commodities	Ton/US$	49.9	(1.5)	-	-
Interest rate swap -  U.S. Dollar	Interest	US$	200.0	(10.8)	200.0	(22.0)
NDF - U.S. Dollar sale	Currency	US$	80.0	(0.4)	-	-
Options - U.S. Dollar	Currency	US$	40.0	0.2	-	-
Fixed exchange rate -  U.S. Dollar	Currency	US$	-	-	0.8	(0.1)
Fixed exchange rate - Euro	Currency	EUR	-	-	6.6	(0.2)
Fixed exchange rate - Pound Sterling	Currency	GBP	-	-	6.6	-
Total				(181.4)		(25.2)
Financial instruments not designated as hedge accounting
NDF - Purchase of U.S. Dollar	Currency	US$	800.0	(2.0)	680.0	(82.5)
NDF - Purchase of Euro	Currency	EUR	30.0	0.2	-	-
Currency swap - U.S. Dollar	Currency	US$	50.0	1.3	222.0	(200.8)
Currency swap - Euro	Currency	EUR	-	-	13.8	(17.7)
Interest rate - R$	Interest	BRL	549.0	23.9	50.0	0.4
Interest rate - U.S. Dollar	Interest	US$	8.3	-	-	-
Stock swap (2)	Stock	BRL	510.1	(86.4)	-	-
Future - B3	Currency	US$	36.0	(0.2)	150.0	(5.2)
NDF - Purchase of Euro	Currency	EUR	550.0	36.2	300.0	(0.5)
Options -Turkish Lira	Currency	US$	50.0	(0.6)	-	-
Fixed exchange rate - US$	Currency	US$	-	-	0.8	-
Total				(27.6)		(306.3)
Total				(209.0)		(331.5)

⁽¹⁾     The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

⁽²⁾     Total Return Swap asset in BRF’s stocks and liability in percentage of CDI.

a.            Non-deliverable forwards – NDF

 i.             Currency non-deliverable forwards - NDF

The position of the currency non-deliverable forward – NDF, by maturity, as well as the weighted average exchange rates and the fair value, are presented as follows:

12.31.17
SHORT	R$ x US$			R$ x EUR			R$ x GBP
Maturities	Notional (US$)	Average rate	Fair value	Notional (EUR)	Average rate	Fair value	Notional (GBP)	Average rate	Fair value
Financial instruments designated as cash flow hedge
January 2018	130.0	3.2891	(3.2)	15.0	3.9244	(0.6)	10.0	4.3710	(0.9)
February 2018	78.4	3.3128	(0.5)	-	-	-	15.0	4.4690	-
	208.4	3.2980	(3.7)	15.0	3.9244	(0.6)	25.0	4.4298	(0.9)

LONG	US$ x R$			EUR x R$
Maturities	Notional (US$)	Average rate	Fair value	Notional (EUR)	Average rate	Fair value
Financial instruments not designated as hedge accounting
March 2018	800.0	3.3381	(2.0)	30.0	4.0000	0.2
	800.0	3.3381	(2.0)	30.0	4.0000	0.2

SHORT	R$ x US$
Maturities	Notional (US$)	Average rate	Fair value
Financial instruments designated as cash flow hedge
January 2018	20.0	3.3238	0.2
February 2018	40.0	3.3059	(0.7)
March 2018	20.0	3.3340	-
	80.0	3.3174	(0.4)

LONG	US$ x EUR
Maturities	Notional (EUR)	Average rate	Fair value
Financial instruments not designated as hedge accounting
March 2018	550.0	1.1817	36.2
	550.0	1.1817	36.2

ii.             Commodities non-deliverable forwards – NDF

The position of the commodities non-deliverable forwards – NFD, by maturity, as well as weighted average exchange rates and the fair value, are presented as follows:

12.31.17
LONG - Soybean meal	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as cash flow hedge
April 2018	10.0	131.80	(0.5)
June 2018	43.0	131.71	(1.7)
July 2018	13.0	129.43	(0.2)
August 2018	8.0	129.82	(0.2)
September 2018	8.0	128.74	(0.2)
November 2018	10.0	128.74	(0.2)
	92.0	130.65	(3.0)
LONG - Corn	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as cash flow hedge
February 2018	36.6	138.10	-
April 2018	320.0	145.12	(4.0)
August 2018	20.0	148.40	(0.1)
November 2018	80.0	152.38	(0.3)
December 2018	35.0	152.26	(0.1)
	491.6	146.42	(4.5)
LONG - Soybean oil	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as cash flow hedge
February 2018	3.0	731.33	-
April 2018	3.0	733.33	-
June 2018	2.0	745.16	-
July 2018	1.0	744.50	-
August 2018	1.0	744.94	-
September 2018	2.0	741.63	-
November 2018	3.0	732.74	-
	15.0	737.02	-
SHORT - Corn	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as fair value hedge
June 2018	33.7	149.87	0.6
August 2018	21.0	149.19	0.1
	54.7	149.61	0.7
SHORT - Soybean	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as fair value hedge
February 2018	23.0	367.26	1.1
	23.0	367.26	1.1

b.            Interest rate and currency swap

The position of interest rate and currency swap is presented as follows:

12.31.17
Instrument	Maturity	Assets (Hedged object)	Liabilities (Protected risk)	Notional	Fair value
Financial instruments designated as cash flow hedge
Interest rate	06.18.18	LIBOR 3M + 2.60% p.a.	5.47% p.a.	100.0	(2.5)
Interest rate	02.01.19	LIBOR 6M + 2.70% p.a.	5.90% p.a.	100.0	(5.4)
Interest rate	02.01.19	LIBOR 6M + 2.70% p.a.	5.88% p.a.	100.0	(5.4)
				300.0	(13.3)
Currency swap	05.22.18	R$ + 7.75%	US$ + 1.60%	250.0	(153.0)
					(166.3)
Financial instruments not designated as hedge accounting
Interest rate	01.22.18	LIBOR 6M + 2.82% p.a.	5.86% p.a.	8.3	-
Interest rate - Bond	05.22.18	R$ (Fixed rate of 7.75% p.a.)	68.84% CDI	50.0	0.5
Interest rate	04.02.19	R$ (Fixed rate of 9.61% p.a.)	95.00% CDI	250.0	11.5
Interest rate	04.02.19	R$ (Fixed rate of 9.61% p.a.)	93.54% CDI	249.0	11.9
					23.9
Currency swap	04.12.19	US$ + 2,67% p.a.	110.91% CDI	50.0	1.3
Stock swap	02.05.19	BRFS3	110.00% CDI	510.1	(86.4)
					(61.3)

c.            Options ⁽¹⁾

 i.             Currency options

The Company designates as a cash flow hedge or fair value hedge only the variation in the intrinsic value of its options, recognizing the time value of the premium in the financial result. If the hedge is not effective and the option is not exercised due to devaluation of the Brazilian Real, the losses related to the options will be registered as financial expenses in the statement of income.

The Company has designated transactions involving options denominated collar where there is a purchase of a put option ("PUT") and a sale of a call option ("CALL"), simultaneously, such that the premium paid for the call is compensated by the premium received in the put.

When the market price of any of the options is not available in an active market, the fair value is based on an option pricing model (Black-Scholes or Binomial).

⁽¹⁾        The average rates of options contracts may not reflect the expected final result, such as those presented in the table of sensitivity analysis, since its consists of several transactions.

12.31.17
R$ x US$
Type	Maturities	Notional (US$)	Average US$	Fair value
Financial instruments designated as cash flow hedge
Collar - Call (Sale)	January 2018	(60.0)	3.4500	(2.0)
Collar - Put (Purchase)	January 2018	60.0	3.1900	0.9
Collar - Call (Sale)	February 2018	(61.8)	3.3660	(3.2)
Collar - Put (Purchase)	February 2018	61.8	3.2501	2.2
Collar - Call (Sale)	March 2018	(100.0)	3.4074	(5.6)
Collar - Put (Purchase)	March 2018	100.0	3.2894	6.0
Collar - Call (Sale)	April 2018	(40.0)	3.4393	(2.6)
Collar - Put (Purchase)	April 2018	40.0	3.3025	3.0
Collar - Call (Sale)	June 2018	(40.0)	3.4745	(3.3)
Collar - Put (Purchase)	June 2018	40.0	3.2250	2.3
Collar - Call (Sale)	July 2018	(20.0)	3.4930	(1.9)
Collar - Put (Purchase)	July 2018	20.0	3.3100	2.0
Collar - Call (Sale)	August 2018	(20.0)	3.5280	(2.0)
Collar - Put (Purchase)	August 2018	20.0	3.2900	1.9
Collar - Call (Sale)	September 2018	(20.0)	3.5380	(2.2)
Collar - Put (Purchase)	September 2018	20.0	3.2800	1.9
		-		(2.6)

12.31.17
R$ x US$
Type	Maturities	Notional (US$)	Average US$	Fair value
Financial instruments designated as cash flow hedge
Collar - Call (Sale)	April 2018	(20.0)	3.4500	(1.3)
Collar - Put (Purchase)	April 2018	20.0	3.2600	1.1
Collar - Call (Sale)	June 2018	(20.0)	3.4857	(1.7)
Collar - Put (Purchase)	June 2018	20.0	3.3300	2.1
		-		0.2

12.31.17
TRY x US$
Type	Maturities	Notional (US$)	Average US$	Fair value
Financial instruments not designated as hedge accounting
Collar - Call (Sale)	June 2018	(50.0)	4.4342	(2.0)
Collar - Put (Purchase)	June 2018	50.0	3.6960	1.4
				(0.6)

ii.             Soybean meal options

12.31.17
Soybean meal		Quantity	Average rate	Fair value
Type	Maturities	Ton	US$/Ton
Financial instruments designated as cash flow hedge
Collar - Call (Purchase)	February 2018	10.0	142.91	-
Collar - Put (Sale)	February 2018	(10.0)	122.04	(0.2)
Collar - Call (Purchase)	April 2018	20.0	146.65	0.1
Collar - Put (Sale)	April 2018	(20.0)	125.39	(0.7)
Collar - Call (Purchase)	June 2018	10.0	145.07	0.2
Collar - Put (Sale)	June 2018	(10.0)	126.18	(0.5)
Collar - Call (Purchase)	July 2018	10.0	141.14	0.2
Collar - Put (Sale)	July 2018	(10.0)	129.72	(0.7)
				(1.6)

4.2.2 Breakdown of the balances of non-derivative financial instruments

The position of non-derivative financial instruments designated as cash flow hedge is presented as follows:

			12.31.17		12.31.16
Hedge Instrument	Hedge object	Reference currency (notional)	Value (notional)	Fair value (1)	Value (notional)	Fair value (1)
Export prepayment - PPEs	Exchange rate	USD	208.3	689.2	300.0	977.7
Senior unsecured notes - Bonds	Exchange rate	USD	268.7	990.3	268.7	977.2
			-	-	-	-
			477.0	1,679.5	568.7	1,954.9

⁽¹⁾     Reference value converted by FX rate in effect at year-end or partial repeal dates. This amount set forth the total that may impact the Company’s shareholders’ equity.

a.            Export prepayments – PPEs

The position of PPEs designated as cash flow hedge is presented as follows:

12.31.17
Hedge Instrument	Type of risk hedged	Maturities	Notional (US$)	Average rate	Fair value (1)
Export prepayment - PPE	US$ (E.R.)	01.2018 to 02.2019	208.3	1.8643	689.2

⁽¹⁾       Reference value converted by the Ptax rate at the end of the year or partial revocation dates. This amount set forth the total that may impact the Company's shareholders' equity.

b.            Senior unsecured notes – Bonds

The position of bonds designated as cash flow hedge is presented as follows:

12.31.17
Hedge Instrument	Type of risk hedged	Maturities	Notional (US$)	Average rate	Fair value (1)
BRF SA BRFSBZ5	US$ (E.R.)	06.2022	118.7	2.0213	494.1
BRF SA BRFSBZ3	US$ (E.R.)	05.2023	150.0	2.0387	496.2
			268.7	2.0310	990.3

⁽¹⁾       Reference value converted by the Ptax rate at the end of the year or partial revocation dates. This amount set forth the total that may impact the Company's shareholders' equity.

4.3.        Gains and losses of derivative and non-derivative financial instruments

The unrealized gains and losses of derivative and non-derivative financial instruments designated as cash flow hedge while unrealized are recorded as a component of other comprehensive income, as set forth below:

	Shareholders' Equity
	12.31.17	12.31.16
Derivatives designated as cash flow hedges
Foreign exchange risks	(162.5)	(29.2)
Interest risks	(8.5)	(25.9)
Commodity risks	(10.6)	3.4
	(181.6)	(51.7)
Non derivatives designated as cash flow hedges
Foreign exchange risks	(682.1)	(812.0)
Gross losses	(863.7)	(863.7)
Deferred taxes on losses	291.5	287.7
OCI recognized by subsidiaries	-	-
Losses, net of taxes	(572.2)	(576.0)
Change in gross losses	-	820.0
Income taxes on financial instruments adjustments	3.8	(272.7)
OCI recognized by subsidiaries	-	-
Impact in other comprehensive income	3.8	547.3

In the year ended December 31, 2017, the realized gains and losses with derivative and non-derivative financial instruments designated as cash flow hedge resulted in a gain of R$196.1 (gain of R$707.2 in the year ended December 31, 2016), composed by a gain amounting to R$176.6 (gain of R$671.3 in the year ended December 31, 2016) recorded as gross revenues and costs of products sold and a gain of R$19.5 (gain of R$35.9  in the year ended December 31, 2016) recorded in the financial result.

In the year ended December 31, 2017, the realized gains and losses with derivative financial instruments designated as fair value hedge resulted in a gain of R$34.5 (nil effect in the year ended December 31, 2016) recorded as costs of products sold.

4.4.        Breakdown of financial instruments by category – except derivatives

	12.31.17
	Loans and receivables	Available  for sale	Trading securities	Held to maturity	Financial liabilities	Total
Assets
Amortized cost
Cash and bank accounts	1,670.1	-	-	-	-	1,670.1
Marketable securities	-	-	-	257.0	-	257.0
Restricted cash	-	-	-	535.6	-	535.6
Trade accounts receivable	3,925.3	-	-	-	-	3,925.3
Other credits	229.5	-	-	-	-	229.5
Other receivables	28.9	-	-	-	-	28.9
Fair value	-	-	-	-	-	-
Cash equivalents	-	-	4,340.7	-	-	4,340.7
Marketable securities	-	344.3	196.0	-	-	540.3
	-	-	-	-	-	-
Liabilities	-	-	-	-	-	-
Amortized cost	-	-	-	-	-	-
Trade accounts payable	-	-	-	-	(6,445.5)	(6,445.5)
Supply chain finance	-	-	-	-	(715.2)	(715.2)
Loans and financing	-	-	-	-	-	-
Local currency	-	-	-	-	(9,343.0)	(9,343.0)
Foreign currency	-	-	-	-	(11,101.3)	(11,101.3)
Finance lease payable	-	-	-	-	(232.6)	(232.6)
	5,853.8	344.3	4,536.7	792.6	(27,837.6)	(16,310.2)
	12.31.16
	Loans and receivables	Available  for sale	Trading securities	Held to maturity	Financial liabilities	Total
Assets
Amortized cost
Cash and bank accounts	1,730.4	-	-	-	-	1,730.4
Marketable securities	-	-	-	255.5	-	255.5
Restricted cash	-	-	-	645.8	-	645.8
Trade accounts receivable	3,095.8	-	-	-	-	3,095.8
Other credits	335.5	-	-	-	-	335.5
Other receivables	74.2	-	-	-	-	74.2
Fair value	-	-	-	-	-	-
Cash equivalents	-	-	4,626.5	-	-	4,626.5
Marketable securities	-	623.3	271.2	-	-	894.5
	-	-	-	-	-	-
Liabilities	-	-	-	-	-	-
Amortized cost	-	-	-	-	-	-
Trade accounts payable	-	-	-	-	(5,839.8)	(5,839.8)
Supply chain finance	-	-	-	-	(1,335.6)	(1,335.6)
Loans and financing	-	-	-	-	-	-
Local currency	-	-	-	-	(8,643.7)	(8,643.7)
Foreign currency	-	-	-	-	(10,318.7)	(10,318.7)
Finance lease payable	-	-	-	-	(216.8)	(216.8)
Fair value	-	-	-	-	-	-
Loans and financing - NCE	-	-	-	-	-	-
	5,235.9	623.3	4,897.7	901.3	(26,354.6)	(14,696.4)

4.5.        Determination of the fair value of financial instruments

The Company discloses its financial assets and liabilities at fair value, based on the appropriate accounting pronouncements, which refers to concepts of valuation and disclosure requirements.

Particularly related to the disclosure, the Company applies the hierarchy requirements set out in IFRS 13, which involves the following aspects:

·         The fair value is the price that an asset could be exchanged and a liability could be settled, between knowledgeable willing parties in an arm’s length transaction; and

·         Hierarchy on 3 levels for measurement of the fair value, according to observable inputs for the valuation of an asset or liability on the date of its measurement.

The valuation established on 3 levels of hierarchy for measurement of the fair value is based on observable and non-observable inputs. Observable inputs reflect market data obtained from independent sources, while non-observable inputs reflect the Company’s valuation technics. These 2 types of inputs create the hierarchy of fair value set forth below:

·         Level 1 – Prices quoted (unadjusted) for identical instruments in active markets. Investments in credit linked notes, private securities, Financial Treasury Bills (“LFT”) and stocks are classified at level 1 of the fair value hierarchy.

·         Level 2 – Prices quoted in active markets for similar instruments, prices quoted for identical or similar instruments in non-active markets and evaluation models for which inputs are observable. Investments in Bank Deposit Certificates (“CDB”) and derivatives are classified at level 2, since the determination of fair value is based on the price quotation widely accepted in the markets. Readily observable market inputs are used, such as interest rate forecasts, volatility factors and foreign currency rates.

·         Level 3 – Instruments whose significant inputs are non-observable. The Company does not have financial instruments in this classification.

The table below presents the overall classification of financial assets and liabilities according to the valuation hierarchy. For the year ended on December 31, 2017, there were no changes between the 3 levels of hierarchy.

	12.31.17
	Level 1	Level 2	Level 3	Total
Assets
Financial assets
Available for sale
Credit linked notes	15.4	-	-	15.4
Public securities	-	-	-	-
Stocks	328.8	-	-	328.8
Held for trading
Financial treasury bills	166.3	-	-	166.3
Investment funds	29.7	-	-	29.7
Other financial assets
Derivatives designed as hedge accounting	-	27.5	-	27.5
Derivatives not designated as hedge accounting	-	63.1	-	63.1
	540.2	90.6	-	630.8
Liabilities
Financial liabilities
Other financial liabilities
Derivatives designed as hedge accounting	-	(208.8)	-	(208.8)
Derivatives not designated as hedge accounting	-	(90.7)	-	(90.7)
	-	(299.5)	-	(299.5)
	12.31.16
	Level 1	Level 2	Level 3	Total
Assets
Financial assets
Available for sale
Credit linked notes	187.4	-	-	187.4
Public securities	56.4	-	-	56.4
Stocks	379.5	-	-	379.5
Held for trading
Bank deposit certificates	-	48.4	-	48.4
Financial treasury bills	180.5	-	-	180.5
Investment funds	42.3	-	-	42.3
Other financial assets	-	-	-	-
Derivatives designed as hedge accounting	-	197.5	-	197.5
Derivatives not designated as hedge accounting	-	0.5	-	0.5
	846.1	246.4	-	1,092.5
Liabilities
Financial liabilities
Other financial liabilities
Derivatives designed as hedge accounting	-	(222.8)	-	(222.8)
Derivatives not designated as hedge accounting	-	(306.8)	-	(306.8)
	-	(529.6)	-	(529.6)

4.6.        Comparison between book value and fair value of financial instruments

Except for the items presented below, the book value of all other financial instruments approximate fair value. The fair value of financial instruments presented below was based in prices observed in active markets, level 1 of the hierarchy for fair value measurement.

		12.31.17		12.31.16
	Maturity	Book value	Fair value	Book value	Fair value
BRF bonds
BRF SA BRFSBZ5	2022	(369.6)	(406.7)	(364.0)	(415.1)
BRF SA BRFSBZ4	2024	-	-	(2,424.1)	(2,404.4)
BRF SA BRFSBZ3	2023	(1,608.3)	(1,578.7)	(1,568.1)	(1,567.4)
BRF SA BRFSBZ7	2018	(503.8)	(502.4)	(502.9)	(475.9)
BRF SA BRFSBZ2	2022	(1,997.5)	(1,974.5)	(1,729.1)	(1,795.8)
BFF bonds
Sadia Overseas BRFSBZ7	2020	(292.2)	(299.9)	(287.2)	(308.7)
Sadia bonds
Sadia Overseas BRFSBZ6	2017	-	-	(370.0)	(376.7)
Bonds BRF - SHB
BRF SA BRFSBZ4	2024	(2,465.4)	(2,427.8)	-	-
Bonds BRF Gmbh
BRF SA BRFSBZ4	2026	(1,628.9)	(1,553.1)	(1,606.6)	(1,538.8)
Quickfood bonds
Quickfood	2022	(168.0)	(168.0)	(144.5)	(144.5)
Total		(9,033.7)	(8,911.1)	(8,996.5)	(9,027.3)

4.7.        Table of sensitivity analysis

In preparation of the sensitivity analysis, Management considered the derivative financial instruments used to mitigate the currency risk and commodities as relevant market risks that could impact the Company's results. Currently, Management believes that fluctuations in interest rates do not significantly affect its financial results, since it has fixed through derivative financial instruments (interest rate swap), a considerable part of its floating debt.

The table below presents the possible impacts of derivative and non-derivative financial instruments considering scenarios of appreciation and depreciation of the main traded currencies by the Company with respect to its functional currency (Brazilian Real) and changes in corn prices on the Chicago Board of Trade (“CBOT”). The amount of exports utilized corresponds to notional value of derivative financial instruments entered into in order to hedge highly probable transactions.

Quantitative and qualitative information used in preparing these analyzes are based on the position for the year ended December 31, 2017. Future results may differ significantly from those estimates amounts, if the reality becomes different from the assumptions used.

		3.3080	2.9772	2.4810	4.1350	4.9620
Parity - Brazilian Reais x U.S. Dollar		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	10% appreciation	25% appreciation	25% devaluation	50% devaluation
Designated as hedge accouting
Non-deliverable forward	Devaluation of R$	(1.3)	94.1	237.2	(239.9)	(478.4)
Options - currencies	Devaluation of R$	0.7	115.1	313.6	(277.9)	(608.7)
Export prepayments	Devaluation of R$	(300.8)	(231.9)	(128.5)	(473.1)	(645.4)
Bonds	Devaluation of R$	(343.1)	(254.2)	(120.9)	(565.3)	(787.4)
Swaps	Devaluation of R$	(157.8)	(117.0)	(55.9)	(259.8)	(361.7)
Exports (object)	Appreciation of R$	802.2	396.2	(240.0)	1,810.1	2,870.3
Cost (object)	Appreciation of R$	0.1	(2.3)	(5.6)	5.8	11.3
Not designated as hedge accouting
NDF - Purchase	Appreciation of R$	(24.1)	(288.7)	(685.7)	637.5	1,299.1
Futures purchase - B3	Appreciation of R$	(0.2)	(12.1)	(30.0)	29.6	59.3
Net effect		(24.3)	(300.8)	(715.8)	667.0	1,358.4
		3.9693	3.5724	2.9770	4.9616	5.9540
Parity - Brazilian Reais x Euro		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	10% appreciation	25% appreciation	25% devaluation	50% devaluation
Designated as hedge accouting
Non-deliverable forward	Devaluation of R$	(0.7)	5.3	14.2	(15.6)	(30.4)
Exports (object)	Appreciation of R$	0.7	(5.3)	(14.2)	15.6	30.4
Not designated as hedge accouting
NDF - Purchase EUR x US$	Devaluation of R$	33.1	(185.2)	(512.7)	578.9	1,124.7
NDF - Purchase	Devaluation of R$	(0.9)	(12.8)	(30.7)	28.8	58.6
Net effect		32.2	(198.0)	(543.4)	607.7	1,183.3
		4.4714	4.0243	3.3536	5.5893	6.7071
Parity - Brazilian Reais x GBP		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	10% appreciation	25% appreciation	25% devaluation	50% devaluation
Designated as hedge accouting
Non-deliverable forward	Devaluation of R$	(1.0)	10.1	26.9	(29.0)	(56.9)
Exports (object)	Appreciation of R$	1.0	(10.1)	(26.9)	29.0	56.9
Net effect		-	-	-	-	-
		143.85	129.47	107.89	179.81	215.78
Price parity CBOT -  Corn - US$/Ton		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	Decrease 10%	Decrease 25%	Increase 25%	Increase 50%
Designated as hedge accounting
Non-deliverable forward - Corn sale	Increase in the price of corn	1.0	3.6	7.6	(5.5)	(12.0)
Non-deliverable forward - Corn purchase	Decrease in the price of corn	(4.2)	(27.6)	(62.7)	54.3	112.8
Cost (object)	Decrease in the price of corn	3.1	23.9	55.1	(48.8)	(100.8)
Net effect		-	-	-	-	-
		127.11	114.40	95.33	158.89	190.66
Price parity CBOT -  Soybean meal - US$/Ton		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	Decrease 10%	Decrease 25%	Increase 25%	Increase 50%
Designated as hedge accounting
Non-deliverable forward - Soybeal meal purchase	Decrease in the price of soybean meal	(1.1)	(4.9)	(10.7)	8.6	18.3
Soybean meal options	Decrease in the price of soybean meal	(0.2)	(5.6)	(14.3)	6.2	20.8
Cost (object)	Increase in the price of soybean meal	1.3	10.5	25.1	(14.8)	(39.1)
Net effect		-	-	0.1	-	-
		353.38	318.04	265.04	441.73	530.07
Price parity CBOT -  Soybean - US$/Ton		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	Decrease 10%	Decrease 25%	Increase 25%	Increase 50%
Designated as hedge accounting
Non-deliverable forward - Soybean purchase	Decrease in the price of soybean	(1.1)	(3.7)	(7.8)	5.7	12.4
Cost (object)	Increase in the price of soybean	1.1	3.7	7.8	(5.7)	(12.4)
Net effect		-	-	-	-	-

XML

5. SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

Segment Information

SEGMENT INFORMATION

5. SEGMENT INFORMATION

The operating segments are reported consistently with the management reports provided to the chief operating decision maker for assessing the performance of each segment and allocating resources.

As disclosed in note 1, in order to reflect the management structure changes, the segment information is prepared considering the 5 operating segments, as follows: Brazil, Southern Cone, International, One Foods and Other Segments, which primarily observe our geographical structure. The information for the years ended December 31, 2016 and 2015 was restated in order to be comparable to the information for the year ended December 31, 2017, according to the new segments of the Company.

These segments include sales of all distribution channels and operations subdivided according to the nature of the products whose characteristics are described below:

· Poultry: involves the production and sale of whole poultry and in-natura cuts.

· Pork and other: involves the production and sale of in-natura cuts.

· Processed: involves the production and sale of processed foods, frozen and processed products derived from poultry, pork and beef, margarine, vegetable and soybean-based products.

· Other sales: involves the sale of flour for food service and others.

Other segments are divided into:

· Ingredients: commercialization and development of animal health ingredients, human nutrition, plant nutrition (fertilizers) and health care (health and wellness). Such new channel was created during the 2nd quarter of 2017, with the purpose of adding value to the co-products and optimizing the Company’s production chain.

· Other segments: commercialization of in-natura beef cuts and agricultural products.

The net sales for each reportable operating segment are presented below:

		Restated
Net sales	12.31.17	12.31.16	12.31.15
Brazil
In-natura	3,489.9	3,109.0	2,997.9
Poultry	2,697.5	2,410.3	2,265.0
Pork and other	792.4	698.7	732.9
Processed	11,681.6	11,600.8	12,206.5
Other sales	17.1	98.3	51.1
	15,188.6	14,808.1	15,255.5
One Foods
In-natura	5,591.6	5,584.2	5,922.2
Poultry	5,557.2	5,542.1	5,886.8
Other	34.4	42.1	35.3
Processed	909.7	642.3	436.2
Other sales	195.5	-	-
	6,696.8	6,226.5	6,358.3
International
In-natura	5,531.7	6,547.6	5,738.2
Poultry	4,255.4	5,063.5	4,378.7
Pork and other	1,276.3	1,484.1	1,359.5
Processed	2,728.2	2,867.4	2,175.4
Other sales	237.2	221.4	1.5
	8,497.1	9,636.4	7,915.1
Southern Cone
In-natura	395.2	383.0	564.9
Poultry	195.8	230.2	290.3
Pork and other	199.4	152.8	274.6
Processed	1,408.8	1,348.0	1,271.1
Other sales	57.6	33.8	49.8
	1,861.6	1,764.8	1,885.8
Other segments
Ingredients	269.2	-	-
Other sales	956.1	1,297.1	782.0
	1,225.3	1,297.1	782.0
	33,469.4	33,732.9	32,196.6
		Restated
	12.31.17	12.31.16	12.31.15
Brazil	1,019.1	1,028.5	1,547.4
One Foods	8.3	348.6	1,148.0
International	345.6	525.6	1,426.3
Southern Cone	(80.6)	30.9	88.7
Other segments	54.7	21.3	31.1
Ingredients	52.1	-	-
Other sales	2.6	21.3	31.1
Sub total	1,347.1	1,954.8	4,241.5
Corporate	(610.9)	(139.6)	(13.1)
	736.2	1,815.2	4,228.4

The operating income for each reportable operating segment is presented below:

The Corporate line presented above refers to relevant events not attributable to the normal course of its business either to the operating segments, which are recognized as other operating income (expense). For the year ended December 31, 2017, the main events were: R$332.9 in provisions for contingencies, mainly public civil actions, R$157.5 in expenses related to Weak Flesh Operation, R$205.9 provision for adjustment to realizable value of inventories related to Weak Flesh Operation, R$51.9 in business combination costs related to Banvit, R$36.7 in business combination costs related to Lactalis divestiture, R$9.9 in health insurance claims, R$147.7 gain on tax amnesty program and other events of R$31.3.

No customer individually or in aggregate accounted for more than 5% of net sales for the years ended December 31, 2017, 2016 and 2015.

The goodwill and intangible assets with indefinite useful life (trademarks) arising from business combinations were allocated to the reportable operating segments, considering the generated economic benefits by such intangible assets, as presented below:

	Goodwill		Trademarks		Total
		Restated		Restated		Restated
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Brazil	1,151.5	1,151.5	982.5	982.5	2,134.0	2,134.0
One Foods	1,388.1	1,225.0	389.2	170.4	1,777.3	1,395.4
International	1,345.4	1,247.0	24.5	24.7	1,369.9	1,271.7
Southern Cone	307.2	720.0	253.7	135.6	560.9	855.6
	4,192.2	4,343.5	1,649.9	1,313.2	5,842.1	5,656.7

The Company performed the impairment test of the assets allocated to the reportable segments using the discounted cash flow methodology. The results and main assumptions used are disclosed in note 18.

Information referring to the total assets by reportable segments is not being disclosed, as it is not included in the set of information made available to the chief operating decision maker, which take investment decisions and determine allocation of assets on a consolidated basis.

XML

6. BUSINESS COMBINATION AND ACQUISITION OF INTEREST

12 Months Ended

Dec. 31, 2017

Business Combination And Acquisition Of Interest

BUSINESS COMBINATION AND ACQUISITION OF INTEREST

6. BUSINESS COMBINATION AND ACQUSITION OF ENTITIES INTEREST

6.1. Business combination

6.1.1. Fair value of the assets and liabilities of business combination with Universal Meats UK, Eclipse Holding Cöoperatief U.A. and Alimentos Calchaquí Products 7 S.A

For the year ended 2016, BRF acquired 100% of the equity interest in Universal, Eclipse and Calchaquí. The details of the transactions were disclosed in the financial statements for the year ended December 31, 2016 (Note 6.1.3, 6.1.4 and 6.1.5).

During the first semester of 2017, the Company completed the analysis of the fair value of assets acquired and liabilities assumed, which are shown below:

	Universal	Eclipse	Calchaquí
Cash and cash equivalents	22.5	1.7	11.7
Trade accounts receivable, net	108.6	43.0	14.5
Inventories	64.3	18.4	13.3
Recoverable taxes	-	11.8	12.0
Deferred income and social contribution taxes	-	15.7	-
Biological assets	-	23.7	-
Property, plant and equipment	0.4	203.5	75.4
Intangible	127.2	64.6	122.9
Trademarks	-	64.5	122.3
Customer relationship	43.3	-	-
Import quotas	83.9	-	-
Other	-	0.1	0.6
Other assets	6.9	3.8	0.2
	329.9	386.2	250.0
Payroll and related charges	-	9.4	3.5
Trade accounts payable	30.6	50.3	14.8
Tax payable	3.2	8.2	15.2
Short-term debt	20.7	33.7	-
Deferred income and social contribution taxes	21.2	-	-
Provision for tax, civil and labor risks	-	37.6	14.4
Other liabilities	18.8	20.3	33.2
	94.5	159.5	81.1
Net assets acquired	235.4	226.7	168.9
Fair value of consideration paid	280.8	228.5	387.0
Goodwill	45.4	1.8	218.1

The conciliation between the preliminary goodwill disclosed on December, 31, 2016 (notes 6.1.3, 6.1.4 and 6.1.5) and the goodwill by expectation of future profitability are shown below:

	Universal	Eclipse	Calchaquí
Preliminary goodwill (disclosed on December 31, 2016)	168.8	231.5	403.1
Allocations	123.4	229.8	185.2
Property, plant and equipment	-	165.2	62.3
Trademark	-	64.5	122.3
Import quotas	83.9	-	-
Customer relationship	43.3	-	-
Other	(3.8)	0.1	0.6
Goodwill for future expected profitability	45.4	1.7	217.9

The amounts of goodwill based on expectation of future profitability were allocated to the operating segment Southern Cone, for Eclipse and Calchaquí, and International for Universal.

6.1.2. Business combination with Qatar Investment Authority (“QIA”)

On March 07, 2017, BRF Foods GmbH, a wholly-owned subsidiary of One Foods Holdings Ltd has incorporated a new company named TBQ Foods GmbH (“TBQ”), with the purpose of being the acquirer of Banvit (note 6.1.3).

On May 24, 2017 BRF Foods GmbH has entered into an agreement with Qatar Investment Authority (“QIA”), the sovereign wealth fund of the State of Qatar, which acquired equity interests in TBQ, so that BRF Foods GmbH and QIA withhold respectively, 60% and 40% of participation. TBQ’s shareholders’ agreement grants BRF Foods GmbH control over the entity, and QIA’s rights are solely protective.

The agreement with QIA includes options, which grant QIA the right to sell its shares to BRF (“put option”) or exchange for participation into One Foods Holdings Ltd. (“roll-up”). It also includes a call option held by BRF Foods GmbH. The options may be exercised only in certain conditions stablished in the agreement, and will expire in 4,5 years after May 24, 2017. BRF Foods GmbH recognized a liability, in non-current liabilities, related to the Put and Roll-up options in the amount of TRY505.4 (equivalent to R$465.0).

In compliance with IFRS 3, IAS 28, IFRS 10, non-controlling interest is not recognized for the shares subject to the put option. This participation is expressed by the liability described above

6.1.3. Business combination - Banvit

Following the transaction concluded in May 25, 2017 for the acquisition of 79.48% of participation in Banvit Bandirma Vitaminli Yem Sanayii A.Ş. ("Banvit") and in accordance to regulatory rules of Turkish capital markets, TBQ Foods GmbH (“TBQ”), subsidiary of the Company, performed a mandatory tender offer to the non-controlling shareholders (“Offer”) for the amount of TRY917.9 (equivalent to R$844.9).

The Offer occurred between July 17, 2017 and August 11, 2017, resulting in the acquisition of 12,225,326 Banvit’s shares, equivalent to 12.23% of participation. The Offer totaled TRY164.1 (equivalent to R$151.0), paid from the restricted cash. After the conclusion of the Offer, TBQ holds 91.71% of equity stake in Banvit and the remaining interest, 8.29%, is negotiated in the Istanbul Stock Exchange (“ISE”) under the ticker BANVT.

According to the price adjustment conditions stablished in the share purchase agreement, during August 2017, TBQ has complemented the amount paid to Banvit’s prior controlling shareholders in US$41,1 (equivalent to R$129.3), of which US$22.0 were paid from the restricted cash, US$11.5 contributed by BRF Foods GmbH and US$7.6 contributed by Qatar Investment Authority (“QIA”).

Following the conclusion of the price adjustment payment and the mandatory tender offer, TBQ derecognized the remaining amount of TRY111.3 (equivalent to R$102.5) recorded as other current liabilities. In compliance with IFRS 3, IAS 28, IFRS 10, non-controlling interest related to the shares listed in ISE are now presented separately under the financial statements.

In order to comply with the requirements of IFRS 3 a fair value report of the acquired assets and assumed liabilities has been prepared with the purpose of allocating the purchase price. The fair value of the assets and liabilities is demonstrated in the table below and reflected in the financial statements:

	Fair value at acquisition date
Cash and cash equivalents	93.7
Trade accounts receivable	171.3
Inventories	153.7
Biological assets	103.0
Deferred tax assets	41.3
Investments	6.9
Property, plant and equipamet	547.7
Intangible assets	-
Software	2.7
Trademarks	230.1
Customer relationship	431.7
Other assets	25.9
	1,808.0
Payroll and related charges	22.9
Trade accounts payable	192.9
Debt	389.2
Deferred taxes liabilities	37.8
Provision for tax, civil and labor risks	1.8
Other post-employment plans	26.0
Other liabilities	55.4
	726.0
Net assets acquired	1,082.0
Non-Controlling Interest	(58.1)
Fair value of consideration transferred	1,227.7
Goodwill	203.8

In 2017, the business combination contributed with net revenue of R$1,385.1 and net income of R$154.6 from the acquisition date until December 31, 2017 in the consolidated income statement. If the acquisitions had occurred at the beginning of 2017, the consolidated net revenue for this year would be increased in R$830.8 and the consolidated net income for the year would be increased in R$54.6.

6.2. Acquisition of Equity Interest

6.2.1. Acquisition of equity interest BRF Invicta Ltd (“BRF Invicta”)

On April 18, 2017, BRF through its wholly-owned subsidiary BRF GmbH, entered into a share purchase agreement for the acquisition of the additional 7.16% ownership in BRF Invicta, for the amount of GBP20.3 (equivalents to R$79.1). The premium paid in the acquisition of non-controlling shareholders’ was GBP14.2 (equivalent to R$55.3) recorded as capital reserve.

XML

7. CASH AND CASH EQUIVALENTS

12 Months Ended

Dec. 31, 2017

Cash and cash equivalents [abstract]

CASH AND CASH EQUIVALENTS

7. CASH AND CASH EQUIVALENTS

	Average rate (p.a.)
		12.31.17	12.31.16
Cash and bank accounts
U.S. Dollar	-	525.1	680.1
Brazilian Reais	-	135.0	46.4
Euro	-	181.8	274.3
Other currencies	-	828.3	729.6
		1,670.2	1,730.4
Cash equivalents
In Brazilian Reais
Investment funds	1.87%	5.3	26.9
Savings account	2.76%	4.0	4.8
Bank deposit certificates	6.96%	3,527.8	3,830.2
		3,537.1	3,861.9
In U.S. Dollar
Term deposit	2.95%	66.2	327.0
Overnight	0.50%	645.6	421.5
Other currencies
Term deposit	1.78%	91.7	16.1
		803.5	764.6
		6,010.8	6,356.9

XML

8. MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2017

Marketable Securities

MARKETABLE SECURITIES

8. MARKETABLE SECURITIES

			Average interest rate (p.a.)
	WATM (1)	Currency		12.31.17	12.31.16
Available for sale
Credit linked note (a)	5.48	US$	3.85%	15.4	187.4
Public securities (b)	-	US$	-	-	56.4
Stocks (c)	-	R$ and HKD	-	328.8	379.5
				344.2	623.3
Held for trading
Bank deposit certificates ("CDB") (d)	-	R$	-	-	48.4
Financial treasury bills (e)	1.82	R$	6.90%	166.3	180.5
Investment funds (f)	1.00	ARS	25.00%	29.7	42.3
				196.0	271.2
Held to maturity
Sovereign bonds and others (e)	4.34	AOA and R$	3.82% to 6.90%	257.0	255.5
				797.2	1,150.0
Current				228.4	622.3
Non-current (2)				568.8	527.7

⁽¹⁾ Weighted average maturity in years.

⁽²⁾ Maturity within up to July 26, 2018.

(a) The credit linked note is a structured operation with a first-class financial institution that bears periodic interest (LIBOR + spread) and corresponds to a credit note that contemplates the Company’s risk.

(b) Brazilian foreign debt securities are denominated in U.S. Dollars and remunerated at pre and post-fixed rates.

(c) The stock balance comprises the market value of 26,000,000 stocks from Minerva (ticker BEEF3 and market value of R$10.65 to each stock on December 31, 2017) and 77,583,000 stocks of Cofco Meat (ticker 1610 and market value of HKD1.58 to each stock on December 31, 2017).

(d) Bank Deposit Certificate (“CDB”) investments are denominated in Brazilian Reais and remunerated at rates varying of the Interbank Deposit Certificate (“CDI”).

(e) Comprised of Financial Treasury Bills (“LFT”) remunerated at the rate of the Special System for Settlement and Custody (“SELIC”) and securities of the Angola Government denominated in Kwanzas.

(f) The fund in foreign currency is basically represented of public and private securities.

The unrealized loss by the change in fair value of the available for sale securities, recorded in other comprehensive income, corresponds to the accumulated amount of R$56.3 net of income tax of R$23.0 (loss of R$26.0 net of income tax of R$11.5 as of December 31, 2016).

Additionally, on December 31, 2017, of the total of marketable securities, R$16.2 (R$74.1 as of December 31, 2016) were pledged as collateral (without restrictions for use) for operations with future contracts denominated in U.S. Dollars, traded on the B3.

The Company also has restricted cash in the amount of R$535.6 on December 31, 2017 (R$645.8 on December 31, 2016) (note 15).

XML

9. TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2017

Trade Accounts Receivable Net And Other Receivables

TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES

9.            TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES

	12.31.17	12.31.16
Trade accounts receivable, net
Domestic customers	1,622.8	1,308.1
Domestic related parties	2.6	1.1
Foreign customers	2,754.0	2,144.7
Foreign related parties	27.2	64.7
	4,406.6	3,518.6
( - ) Adjustment to present value	(13.7)	(16.3)
( - ) Allowance for doubtful accounts	(467.6)	(406.5)
	3,925.3	3,095.8
Current	3,919.0	3,085.1
Non-current	6.3	10.7
Notes receivable	260.6	367.9
( - ) Adjustment to present value	(0.3)	(0.2)
( - ) Allowance for doubtful accounts	(30.8)	(32.2)
	229.5	335.5
Current	113.1	149.0
Non-current (1)	116.4	186.5

⁽¹⁾ Weighted average maturity of 3.22 years.

Of the foreign related parties balance, is linked to Agribusiness Receivable Certificate ("CRA") operation, as disclosed in note 19.2.

12.31.17
Operation	Date	Maturity	Average rate	Principal value	Updated Value
CRA 2018 - 1th Issue	09.29.2015	10.01.2018	96.9% CDI	1,000.0	997.8
CRA 2019 - 2sd Issue	04.19.2016	04.19.2019	96.5% CDI	1,000.0	1,009.4
CRA 2020 - 3th Issue	12.16.2016	12.16.2020	96.0% CDI	780.0	801.0
CRA 2023 - 3th Issue	12.16.2016	12.18.2023	IPCA + 5.90%	720.0	763.5
				3,500.0	3,571.7

On December 31, 2017 notes receivable are comprised mainly by receivables from the (i) sale of Ana Rech assets to JBS, of R$4.0 and (ii) disposal of several other assets and farms, R$204.9.

The trade accounts receivable from related parties are disclosed in note 30. The consolidated balances, refers to transaction with associates UP!, in domestic market and with joint ventures SATS BRF, in foreign market.

The rollforward of allowance for doubtful accounts is presented below:

	12.31.17	12.31.16
Beginning balance	(406.5)	(432.0)
Additions	(187.3)	(199.2)
Business combination (1)	(11.6)	(10.6)
Reversals	112.0	148.6
Write-offs	30.8	30.7
Exchange rate variation	(5.0)	56.0
Ending balance	(467.6)	(406.5)

⁽¹⁾ Balance arising from the business combination with Banvit (note 6.1.3).

The aging of trade accounts receivable is as follows:

	12.31.17	12.31.16
Current	3,272.1	2,389.9
Overdue
01 to 60 days	364.3	393.8
61 to 90 days	98.9	42.0
91 to 120 days	33.7	25.3
121 to 180 days	74.6	72.3
181 to 360 days	170.8	157.2
More than 361 days	392.2	438.1
( - ) Adjustment to present value	(13.7)	(16.3)
( - ) Allowance for doubtful accounts	(467.6)	(406.5)
	3,925.3	3,095.8

XML

10. INVENTORIES

12 Months Ended

Dec. 31, 2017

Inventories Abstract

INVENTORIES

10. INVENTORIES

	12.31.17	12.31.16
Finished goods	3,166.4	3,207.9
Work in process	156.7	172.8
Raw materials	1,220.1	900.8
Packaging materials	87.2	76.8
Secondary materials	324.9	265.3
Warehouse	247.4	205.7
Imports in transit	103.9	113.0
Other	11.4	6.7
(-) Provision for adjustment to realizable value	(253.7)	(93.5)
(-) Provision for deterioration	(66.4)	(26.2)
(-) Provision for obsolescense	(6.9)	(7.7)
(-) Adjustment to present value	(42.8)	(30.1)
	4,948.2	4,791.6

The costs of sales attributed to products sold during the year ended December 31, 2017 totaled R$26,565.3 (R$26,206.4 in 2016 and R$22,107.7 in 2015). Such amounts include the additions and reversals of inventory provisions, except for the effects recorded as other operating results, presented in the table below:

	Provision for adjustment to realizable value		Provision for deterioration		Provision for obsolescence		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	(93.5)	(20.0)	(26.2)	(49.6)	(7.7)	(12.2)	(127.5)	(81.8)
Additions (1)	(240.7)	(113.9)	(62.4)	(19.0)	(2.4)	(1.5)	(305.5)	(134.4)
Reversals	80.8	15.3	-	-	-	-	80.8	15.3
Write-offs	-	-	22.3	44.6	2.2	3.8	24.5	48.4
Business combination	-	-	-	-	0.8	-	0.8	-
Exchange rate variation	(0.3)	25.1	(0.1)	(2.2)	0.2	2.2	(0.2)	25.1
Ending balance	(253.7)	(93.5)	(66.4)	(26.2)	(6.9)	(7.7)	(327.1)	(127.4)

⁽¹⁾ Manly amount is effect from Weak Flesh Operation (note 1.5).

On December 31, 2017 and 2016, there were no inventory items pledged as collateral.

XML

11. BIOLOGICAL ASSETS

12 Months Ended

Dec. 31, 2017

Biological Assets

BIOLOGICAL ASSETS

11.         BIOLOGICAL ASSETS

The balance of biological assets is segregated in current and non-current assets are presented below:

	12.31.17	12.31.16
Live animals	1,510.5	1,644.9
Total current	1,510.5	1,644.9
Live animals	639.8	647.3
Forests	263.9	270.0
Total non-current	903.7	917.3
	2,414.2	2,562.3

The rollforward of biological assets for the year is presented below:

	Current						Non-current
	Live animals				Total		Live animals				Forests		Total
	Poultry		Pork				Poultry		Pork
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	770.8	595.5	874.3	734.4	1,644.9	1,329.9	349.0	294.9	298.3	236.0	270.0	230.2	917.3	761.0
Additions/Transfer	547.9	246.4	1,692.0	1,686.0	2,240.0	1,932.4	84.3	45.0	203.8	191.2	35.3	37.5	323.4	273.7
Business combination (2)	103.0	-	-	17.9	103.0	17.9	-	24.0	-	5.8	-	-	-	29.7
Fair value variation (1)	1,290.4	1,664.7	88.7	112.9	1,379.1	1,777.6	(31.0)	66.6	(113.4)	(63.0)	7.4	42.4	(137.0)	46.0
Harvest	-	-	-	-	-	-	-	-	-	-	(41.2)	(31.0)	(41.2)	(31.0)
Write-off	-	-	-	-	-	-	(8.4)	-	(0.2)	-	(3.7)	(8.8)	(12.3)	(8.8)
Transfer between current  and non-current	69.9	72.3	78.7	70.7	148.6	143.0	(69.9)	(72.3)	(72.5)	(70.7)	-	-	(142.4)	(143.0)
Transfer of the held for sale	-	-	-	-	-	-	-	(4.1)	-	-	(3.9)	(0.3)	(3.9)	(4.4)
Transfer to inventories	(2,076.2)	(1,804.8)	(1,921.2)	(1,745.1)	(3,997.3)	(3,550.0)	-	-	-	-	-	-	-	-
Exchange variation	(5.9)	(3.3)	(1.9)	(2.6)	(7.8)	(5.9)	1.8	(5.1)	(2.1)	(1.0)	-	-	(0.3)	(5.9)
Ending balance	699.9	770.8	810.6	874.3	1,510.5	1,644.9	325.8	349.0	313.9	298.3	263.9	270.0	903.6	917.3

⁽¹⁾  The fair value variation of biological assets includes depreciation of breeding stock in the amount of R$758,7 (R$680,9 as of December 31, 2016).

⁽²⁾  Balance arising from the business combination with Banvit (note 6.1.3).

The acquisitions of biological assets for production (non-current) occur when there is an expectation that the production plan cannot be met with its own animals and, usually, these acquisitions refer to immature animals in the beginning of the life cycle.

The living animals comprises poultry and pork and are segregated into consumable and for production.

The animals classified as consumables are those intended for slaughtering to produce in-natura meat or processed products. Until they reach the adequate weight for slaughtering, they are classified as immature. The slaughtering and production process occurs sequentially and in a very short period of time, so that only live animals ready for slaughtering are classified as mature.

The animals classified as for production (breeding stock) are those that have the function of producing other biological assets. Until they reach the age of reproduction they are classified as immature and when they are able to initiate the reproductive cycle, they are classified as mature.

The Company determined that the cost approach is the most appropriate methodology in order to obtain the fair value of its live animals, as required by IFRS 13. This is mainly due to the short life period of the animal, and the price that would be received in a sale in an active market that represent the amount near to the cost to produce an animal in the same level of maturity.

For the breeding stock the production cost is reduced throughout its life considering its normal devaluation.

The Company determined that income approach is the most appropriate methodology in order to obtain the fair value of its forests, as the asset value is correlated to the present value of the future cash flows generated by the biological asset.

The quantities and balances per live animals assets are presented below:

	12.31.17		12.31.16
	Quantity (thousand of heads)	Value	Quantity (thousand of heads)	Value
Consumable biological assets
Immature poultry	199,337	699.9	202,454	770.7
Immature pork	3,987	810.6	3,788	874.2
Total current	203,324	1,510.5	206,242	1,644.9
Production biological assets
Immature poultry	6,693	117.2	6,735	119.9
Mature poultry	11,113	208.6	11,670	229.2
Immature pork	229	67.8	195	58.9
Mature pork	445	246.2	427	239.4
Total non-current	18,480	639.8	19,027	647.3
	221,804	2,150.3	225,269	2,292.3

The Company has areas planted with forests in the amount of 29,930 hectares (31,095 hectares on December 31, 2016), concentrated in the South, Southeast and Midwest regions.

The Company has forests as collateral for loan and tax/civil contingencies in the amount of R$56.1 (R$66.5 on December 31, 2016).

11.1.     Table of sensitivity analysis

The live animals and forests fair value is determined using non-observable information and the best practices and data available at the moment the appraisal is done, being classified as level 3 in the fair value hierarchy, as required by IFRS 13.

			Impact on fair value measurement
			The estimated fair value can be change if:
Asset	Valuation methodology	Non observable  significant inputs	Increase	Decrease
Forests	Income approach	Estimated price of standing wood	Increase in the price of wood	Decrease in the price of wood
		Productivity per hectare estimated	Increase in yield per hectare	Decrease in yield per hectare
		Harvest and transport cost	Decrease of harvest cost	Increase of harvest cost
		Discount rate	Descrease in discount rate	Increase in discount rate
Live animals	Cost approach	Animal feed cost (corn, soybean meal)	Increase in animal feed cost	Decrease in animal feed cost
		Labor cost (outgrowers)	Increase in labor cost	Decrease in labor cost

XML

12. RECOVERABLE TAXES

12 Months Ended

Dec. 31, 2017

Recoverable Taxes

RECOVERABLE TAXES

12.         RECOVERABLE AND INCOME AND SOCIAL CONTRIBUTION TAXES  

Recoverable taxes	12.31.17	12.31.16
ICMS ("State VAT")	1,681.9	1,575.1
PIS and COFINS ("Federal Taxes to Social Fund Programs")	430.2	331.6
IPI ("Federal VAT") (1)	791.2	201.3
INSS ("Brazilian Social Security")	280.4	280.4
Other	123.9	95.9
(-) Provision for losses	(160.5)	(155.6)
	3,147.1	2,328.7
Current	728.9	846.1
Non-current	2,418.2	1,482.6
Recoverable income and social contribution tax
Income and social contribution tax (IR/CS)	528.3	433.7
(-) Provision for losses	(9.0)	(9.0)
	519.3	424.7
Current	499.3	388.7
Non-current	20.0	36.0

⁽¹⁾     Main variation refers to adhesion to the tax amnesty program, as disclosed in note 1.6.

The rollforward of the allowance for losses is presented below:

	ICMS ("State VAT")		PIS and COFINS ("Federal Taxes to Social Fund Programs")		Income and social contribution tax		IPI ("Federal VAT")		Other		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	(114.3)	(113.9)	(19.9)	(25.1)	(9.0)	(9.0)	(14.7)	(14.7)	(6.7)	(8.7)	(164.6)	(171.4)
Additions	(37.7)	(28.2)	-	(0.2)	-	-	-	-	(2.3)	(0.3)	(40.0)	(28.7)
Write-offs	29.1	27.8	0.2	5.4	-	-	1.2	-	4.0	0.2	34.5	33.4
Exchange rate variation	-	-	-	-	-	-	-	-	0.6	2.1	0.6	2.1
Ending balance	(122.9)	(114.3)	(19.7)	(19.9)	(9.0)	(9.0)	(13.5)	(14.7)	(4.4)	(6.7)	(169.5)	(164.6)

12.1.     State ICMS (“VAT”)

Due to its (i) export activity, (ii) domestic sales that are subject to reduced tax rates and (iii) acquisition of property, plant and equipment, the Company accumulates tax credits that are offset against debits generated in sales in the domestic market or transferred to third parties.

The Company has ICMS tax credits in the States of Mato Grosso do Sul, Paraná, Minas Gerais, Santa Catarina, Distrito Federal and Rio Grande do Sul, for which Management understands that realization will occur in short or long term, based on a credit recoverability study prepared by Management.

12.2.     PIS and COFINS

Tax credits on Contribution to the Social Integration Program (“PIS”) and Contribution to Social Fund Programs (“COFINS”) arise from credits on purchases of raw materials used in the production of exported products or products that are taxed at zero rate, such as in-natura meat and margarine.

The recovery of these tax credits can be achieved by offsetting them against domestic sales operations of taxed products and other federal taxes or compensation claims.

12.3.     Income and social contribution taxes

These correspond to withholding taxes on marketable securities, interest and prepayments of income and social contribution taxes, which are realizable by offsetting them against other federal taxes.

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES

12 Months Ended

Dec. 31, 2017

Income And Social Contribution Taxes

INCOME AND SOCIAL CONTRIBUTION TAXES

13.         INCOME AND SOCIAL CONTRIBUTION TAXES
13.1.     Deferred income and social contribution taxes
	12.31.17	12.31.16
Assets
Tax loss carryforwards (corporate income tax)	1,438.9	1,317.3
Negative calculation basis (social contribution tax)	401.4	376.6
Temporary differences
Provisions for tax, civil and labor risks	398.0	268.2
Suspended collection taxes	12.3	22.1
Allowance for doubtful accounts	116.1	107.2
Provision for property, plant and equipment losses	6.3	3.2
Provision for losses on tax credits	53.2	51.3
Provision for other obligations	92.8	67.5
Provision for inventory losses	98.6	17.6
Employees' benefits plan	127.4	112.2
Unrealized losses on derivatives financial instruments	80.4	133.3
Unrealized losses on inventories	4.4	2.4
Provision for losses - notes receivables	13.7	13.2
Business combination - Sadia (1)	206.8	329.0
Other temporary differences	96.7	106.5
	3,147.0	2,927.6
Liabilities
Temporary differences
Unrealized gains on fair value	(38.5)	(78.3)
Difference between tax basis and accounting basis of goodwill amortization	(301.8)	(254.3)
Difference between tax depreciation rate and accounting depreciation rate (useful life)	(694.2)	(694.5)
Business combination - Sadia (1)	(727.1)	(703.0)
Business combination - AKF	(17.8)	(19.1)
Business combination - Dánica and Avex	(4.5)	(6.7)
Business combination - Invicta	(30.9)	(39.8)
Business combination - AFC	-	(34.4)
Business combination - Federal Foods	-	(7.6)
Business combination - other companies (2)	(35.8)	(58.2)
Other - exchange rate variation	(54.9)	(48.6)
Other temporary differences	(27.4)	(36.2)
	(1,932.9)	(1,980.7)
Total deferred tax	1,214.1	947.0
Total Assets	1,369.4	1,103.1
Total Liabilities	(155.3)	(156.2)
	1,214.1	947.0

⁽¹⁾          The deferred tax asset on the business combination with Sadia is mainly computed on the difference between the goodwill amortization tax basis and goodwill accounting basis identified in the purchase price allocation. Deferred tax liability on business combination with Sadia is substantially represented by the fair value of property, plant and equipment, trademarks and contingent liabilities.

⁽²⁾          Deferred tax liabilities related to the business combinations with Quickfood (trademarks, customer relationship, Fair value of property, plant and equipment) and AFC (customer relationship).

The roll-forward of deferred tax is set forth below:

	12.31.17	12.31.16
Beginning balance	947.0	1,067.7
Deferred income and social contribution taxes recognized in the statement of income	230.0	104.1
Deferred income and social contribution taxes writte-off for fiscal loss and negative calculation basis - PERT	(56.9)	-
Deferred income and social contribution taxes recognized in other comprehensive income	15.2	(261.6)
Deferred income and social contribution taxes not recognized in the statement of income - (Dropdown SHB)	-	-
Business combination	(15.9)	(20.8)
Deferred income and social contribution taxes on disposals of goodwill from BRF Gmbh and Invicta	44.4	-
Exchange rate variation over deferred income and social contribution taxes related to business combination	(7.2)	44.0
Other	57.5	13.6
Ending balance	1,214.1	947.0

13.2.      Estimated time of realization

Deferred tax arising from temporary differences will be realized as these differences are settled. The period of the settlement or realization of such differences is uncertain and is tied to several factors that are not under control of the Management.

When assessing the likelihood of the realization of deferred tax assets on income tax loss carryforward and negative calculation basis of social contribution tax, Management considers the Company’s budget, strategic plan and projected taxable income. Based on this estimate, Management believes that it is more likely than not that the deferred tax will be realized, as shown below:

2018	27.9
2019	74.8
2020	137.8
2021	155.3
2022	184.5
2023 to 2025	714.4
2026 onwards	545.6
	1,840.3

During 2017, although tax loss carryforwards were generated in Austria (BRF GmbH and BRF Foods), no deferred tax assets were recorded since the Company did not consider that it possible to use them in the next 10 years. In BRF GmbH, despite it was recorded a loss of R$499.5, it was not possible to recorded deferred tax asset of 25% on this basis or R$124.9. For BRF Foods, likewise, despite a loss of R$322.1, R$80.5 of deferred tax asset was not recorded.

13.3.     Income and social contribution taxes reconciliation

	12.31.17	12.31.16	12.31.15
(Loss) Income before income and social contribution taxes	(1,345.5)	(317.5)	2,558.2
Nominal tax rate	34%	34%	34%
Credit (expense) at nominal rate	457.5	107.9	(869.8)
Reconciling itens
Equity interest in income (loss) of subsidiaries, associates and joint venture	7.6	10.0	(35.3)
Exchange rate variation on foreign investments	71.7	(224.6)	460.2
Difference of tax rates on results of foreign subsidiaries	87.0	(144.9)	586.9
Deferred income tax not constituted abroad	(363.8)	-	-
Interest on shareholders' equity	-	174.5	305.7
Stock options	(7.3)	(14.8)	(20.0)
Transfer price	(15.8)	(1.5)	(8.4)
Profit sharing	-	(0.8)	(10.5)
Penalties	(6.8)	(7.9)	(4.2)
Change rate/Impairment - Argentina subsidiaries	(117.8)	-	-
Investment grant	49.1	41.7	44.8
Special Regime for the Reintegration of Tax Values for Exporting Companies (Reintegra)	8.4	1.0	-
Other permanent differences	76.8	9.5	(59.8)
	246.6	(49.9)	389.6
Current income tax	16.6	(154.0)	(17.1)
Deferred income tax	230.0	104.1	406.6

⁽¹⁾         On December 27, 2017, it was sanctioned by the Honorable Congreso de la Nación, the Law 27,430 (through Decree nº1.112 / 2017) that changed the income tax rate in Argentina. The enacted 35% tax rate in 2017 was changed to 30% in 2018 and 2019 and to 25% in 2020. The change in the rate was considered in the study of deferred taxes recorded in the Argentine subsidiaries and generated a reduction of deferred income tax assets in the amount of R$58.3, which was recorded during the year of 2017. In addition, the Company derecognized in the amount of R$59.5 arising from the analysis of the expectation of recoverability of deferred income tax balances on losses in Argentina.

The taxable income, current and deferred income tax from foreign subsidiaries is presented below:

	12.31.17	12.31.16	12.31.15
Taxable income (loss) from foreign subsidiaries	(432.3)	(1,289.8)	2,064.7
Current income tax credit (expense) from foreign subsidiaries	(67.1)	(58.2)	(41.0)
Deferred income tax from foreign subsidiaries	(18.0)	348.1	5.8

Company determined that the earnings recorded by the holdings of its wholly-owned subsidiaries located abroad will not be redistributed.

Such resources will be used for investments in the subsidiaries, and thus no deferred income tax was recognized. The total of undistributed earnings corresponds to R$3,182.4 as of December 31, 2017 (R$3,317.1 as of December 31, 2016).

Brazilian income taxes are subject to review for a five-year period, during which the tax authorities might audit and assess the Company for additional taxes and penalties. Subsidiaries located abroad are taxed in their respective jurisdictions, according to local regulations.

XML

14. JUDICIAL DEPOSITS

12 Months Ended

Dec. 31, 2017

Judicial Deposits

JUDICIAL DEPOSITS

14. JUDICIAL DEPOSITS

The rollforward of the judicial deposits is presented below:

	Tax		Labor		Civil, commercial and other		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	312.5	376.7	377.4	311.3	42.7	44.1	732.6	732.1
Additions	23.4	82.7	188.3	161.6	7.8	5.5	219.5	249.8
Business combination	-	0.2	-	-	-	-	-	0.2
Reversals	(52.5)	(4.8)	(78.7)	(20.7)	(4.4)	(3.9)	(135.6)	(29.4)
Write-offs	(9.0)	(184.4)	(136.5)	(97.8)	(10.5)	(6.1)	(156.0)	(288.3)
Price index update	18.2	42.1	11.2	25.6	0.8	3.1	30.2	70.8
Exchange rate variation	(0.1)	-	(1.7)	(2.6)	-	-	(1.8)	(2.6)
Ending balance	292.5	312.5	360.0	377.4	36.4	42.7	688.9	732.6

XML

15. RESTRICTED CASH

12 Months Ended

Dec. 31, 2017

Restricted Cash

RESTRICTED CASH

15. RESTRICTED CASH

			Average interest rate (p.a.)
	Maturity (1)	Currency		12.31.17	12.31.16
Bank deposit certificates (2)	3.55	R$	8.05%	326.4	384.4
National treasury certificates (3)	2.29	R$	11.47%	190.2	171.4
Bank deposit (4)	-	US$	-	19.0	90.1
				535.6	645.9
Current				127.8	218.3
Non-current				407.8	427.6

⁽¹⁾ Weighted average maturity in years.

⁽²⁾ The deposit was pledged as collateral in the disposal of the dairy segment to Groupe Lactalis (“Parmalat”) with maturity on 2021.

⁽³⁾ The national treasury certificates, which mature on 2020, are pledged as collateral for the loan obtained through the Special Program Asset Restructuring (“PESA”) (note 19).

⁽⁴⁾ Deposit linked to operations in the international market.

XML

16. INVESTMENTS

12 Months Ended

Dec. 31, 2017

Investments In Associates And Joint Ventures Abstract

INVESTMENTS

16.         INVESTMENTS

16.1.     Investments breakdown

	12.31.17	12.31.16
Investment in affiliates and joint venture	54.1	51.7
Goodwill SATS BRF	6.1	5.6
	60.2	57.3
Other investments	8.0	1.4
	68.2	58.7

On December 31, 2017, these associates, affiliates and joint ventures do not have any restriction to transfer dividends or repay their loans or advances to the Company.

16.2.     Summary of financial information in affiliates

	BRF Pet	PP-BIO		PR-SAD		UP!		Total
	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Current assets	-	-	-	-	-	49.4	51.0
Non-current assets	-	6.7	5.9	15.9	13.1	0.2	0.2
Current liabilities	-	-	-	-	-	(49.5)	(51.2)
Shareholder's equity	-	6.7	5.9	15.9	13.1	0.1	-
% of participation	0.00%	33.33%	33.33%	33.33%	33.33%	50.00%	50.00%
Book value of investment	-	2.2	2.0	5.3	4.4	-	-	7.5	6.4
Dividends declared	-	-	-	-	-	25.6	26.9	25.6	26.9
	BRF Pet (1)	PP-BIO		PR-SAD		UP!
	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Net revenues	24.8	-	-	-	-	174.9	191.3
Net income (loss)	4.7	-	-	-	-	51.1	53.8
Equity pick-up	2.3	-	-	-	-	25.6	26.9	25.6	29.2

⁽¹⁾     On March 18, 2016, the Company acquired control and total shares, being treated as wholly-owned subsidiary from this date and on June 21, 2017 the name and corporate purpose was changed of K&S Alimentos S.A. to BRF Pet S.A.

XML

17. PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2017

Property Plant And Equipment Net

PROPERTY, PLANT AND EQUIPMENT, NET

17. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment rollforward is presented below:

	Weighted average depreciation rate (p.a.)	12.31.16	Additions	Business combinations (2)	Disposals	Transfers (1)	Exchange rate variation	12.31.17
Cost
Land	-	575.9	6.2	123.5	(2.0)	6.1	(3.5)	706.2
Buildings and improvements	-	5,648.6	60.2	258.8	(36.7)	183.6	(11.8)	6,102.8
Machinery and equipment	-	7,994.1	57.9	389.1	(175.4)	569.8	45.7	8,881.2
Facilities	-	2,047.9	14.8	-	(25.8)	137.3	0.8	2,175.0
Furniture	-	163.5	2.1	16.1	(4.2)	5.8	(11.8)	171.5
Vehicles	-	27.3	0.3	4.8	(8.9)	4.8	0.3	28.6
Construction in progress	-	886.0	693.6	13.6	(5.6)	(1,091.0)	(42.7)	453.9
Advances to suppliers	-	16.1	15.8	-	-	(17.6)	(0.6)	13.7
		17,359.4	850.9	805.9	(258.6)	(201.2)	(23.6)	18,532.9
Depreciation
Buildings and improvements	3.02%	(1,694.4)	(184.0)	(11.4)	17.0	3.7	(3.4)	(1,872.4)
Machinery and equipment	5.93%	(3,193.9)	(567.2)	(21.0)	107.4	3.5	14.7	(3,656.5)
Facilities	3.78%	(646.3)	(91.3)	-	10.8	0.5	1.8	(724.5)
Furniture	8.05%	(66.5)	(13.4)	-	3.1	(0.9)	-	(77.7)
Vehicles	19.99%	(12.1)	(3.2)	(2.8)	7.2	(1.3)	1.0	(11.2)
		(5,613.2)	(859.1)	(35.2)	145.5	5.5	14.1	(6,342.3)
		11,746.2	(8.2)	770.7	(113.1)	(195.7)	(9.5)	12,190.6

⁽¹⁾ Refers to the transfer of R$146.3 to intangible assets, R$35.3 to biological assets and R$13.9 to held for sale.

⁽²⁾ Balance arising from business combination with FFM Further in the amount of R$26.4, Banvit Bandirma Vitaminli of R$547.7, Eclipse of R$145.3 and Calchaquí of R$51.3.

	Weighted average depreciation rate (p.a.)	12.31.15	Additions	Business combinations (2)	Disposals	Reversals	Transfers (1)	Exchange rate variation	12.31.16
Cost
Land	-	584.7	0.5	33.2	(37.5)	-	12.4	(17.4)	575.9
Buildings and improvements	-	5,437.9	18.7	175.3	(127.3)	-	285.3	(141.3)	5,648.6
Machinery and equipment	-	7,027.1	142.2	304.9	(182.9)	-	864.8	(162.0)	7,994.1
Facilities	-	1,854.5	1.9	53.2	(13.2)	-	210.6	(59.1)	2,047.9
Furniture	-	137.9	3.1	12.6	(15.4)	-	14.9	10.4	163.5
Vehicles	-	20.3	0.1	10.7	(5.0)	-	2.6	(1.4)	27.3
Construction in progress	-	789.8	1,517.0	4.7	-	-	(1,376.3)	(49.2)	886.0
Advances to suppliers	-	18.8	40.4	0.2	-	-	(43.2)	(0.1)	16.1
		15,871.0	1,723.9	594.8	(381.3)	-	(28.9)	(420.1)	17,359.4
Depreciation
Buildings and improvements	3.03%	(1,525.9)	(163.8)	(76.0)	35.3	-	6.4	29.6	(1,694.4)
Machinery and equipment	5.89%	(2,786.0)	(464.0)	(155.6)	128.7	-	0.4	82.6	(3,193.9)
Facilities	3.79%	(549.9)	(85.1)	(29.3)	6.9	-	-	11.1	(646.3)
Furniture	8.02%	(64.7)	(11.8)	(8.3)	9.7	-	0.1	8.5	(66.5)
Vehicles	20.06%	(9.0)	(2.7)	(8.6)	4.4	-	2.5	1.3	(12.1)
		(4,935.5)	(727.4)	(277.8)	185.0	-	9.4	133.1	(5,613.2)
Provision for losses		(19.8)	(17.2)	-	-	37.0	-	-	-
		10,915.8	979.3	317.0	(196.3)	37.0	(19.5)	(287.0)	11,746.2

⁽¹⁾ Refers to the transfer of R$53.3 to intangible assets, R$37.5 to biological assets and R$28.3 to held for sale.

The Company has fully depreciated items that are still operating, which are set forth below:

	12.31.17	12.31.16
Cost
Buildings and improvements	138.2	122.2
Machinery and equipment	700.0	674.3
Facilities	74.0	74.4
Furniture	22.7	20.1
Vehicles	5.3	5.0
Others	60.0	49.5
	1,000.2	945.5

During the year ended December 31, 2017, the Company capitalized interest in the amount of R$35.4 (R$59.1 as of December 31, 2016). The weighted average interest rate utilized to determine the capitalized amount was 14.73% (10.56% as of December 31, 2016).

On December 31, 2017, except for the built to suit agreement mentioned in note 23.2, the Company had no commitments assumed related to acquisition or construction of property, plant and equipment items.

The property, plant and equipment items that are pledged as collateral for transactions of different natures are presented below:

		12.31.17	12.31.16
	Type of collateral	Book value of the collateral	Book value of the collateral
Land	Financial/Tax	330.0	258.9
Buildings and improvements	Financial/Tax	1,290.4	1,253.6
Machinery and equipment	Financial/Labor/Tax/Civil	2,318.7	2,129.4
Facilities	Financial/Tax	540.9	523.3
Furniture	Financial/Tax	21.9	23.6
Vehicles	Financial/Tax	1.5	1.0
Other	Financial/Tax	0.4	-
		4,503.8	4,189.8

XML

18. INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2017

Intangible Assets

INTANGIBLE ASSETS

18.         INTANGIBLE ASSETS

The intangible assets rollforward is set forth below:

	Weighted average amortization rate (p.a.)	12.31.16	Additions	Disposals	Business combination	Transfers	Exchange rate variation	12.31.17
Cost
Non-compete agreement	-	51.0	11.5	-	0.5	-	(1.0)	62.0
Goodwill	-	4,343.5	-	-	(203.7)	-	52.4	4,192.2
AKF	-	129.5	-	-	(2.1)	-	4.1	131.5
Alimentos Calchaquí	-	342.0	-	-	(152.3)	-	(31.8)	157.9
Ava	-	49.4	-	-	-	-	-	49.4
Avex	-	18.8	-	-	-	-	(2.7)	16.1
Banvit Bandirma Vitaminli	-	-	-	-	203.8	-	(10.0)	193.8
BRF AFC	-	162.7	-	-	(33.4)	-	2.6	131.9
BRF Holland B.V.	-	22.5	-	-	-	-	3.5	26.0
BRF Invicta	-	119.0	-	-	-	-	12.9	131.9
Dánica	-	4.8	-	-	-	-	(0.7)	4.1
Eclipse Holding Cooperatief	-	209.9	-	-	(202.1)	-	(6.4)	1.4
Eleva Alimentos	-	808.1	-	-	-	-	-	808.1
Federal Foods LLC	-	70.5	-	-	(7.3)	-	0.7	63.9
Federal Foods Qatar L.L.C	-	308.4	-	-	-	-	4.8	313.2
GFS Group	-	684.5	-	-	-	-	87.1	771.6
GQFE - Golden Quality Foods Europe	-	2.4	-	-	-	-	0.4	2.8
Incubatório Paraíso	-	0.7	-	-	-	-	-	0.7
Invicta Food Group	-	0.6	-	-	-	-	0.1	0.7
Paraíso Agroindustrial	-	16.8	-	-	-	-	-	16.8
Perdigão Mato Grosso	-	7.6	-	-	-	-	-	7.6
Quickfood	-	113.8	-	-	-	-	(16.7)	97.1
Sadia	-	1,214.0	-	-	-	-	-	1,214.0
Universal Meats Ltd.	-	57.6	-	-	(10.2)	-	4.6	52.0
Import quotas	-	58.2	-	-	42.2	-	11.4	111.8
Outgrowers relationship	-	14.7	0.3	-	-	-	-	15.0
Trademarks	-	1,313.2	-	-	386.9	-	(50.2)	1,649.9
Patents	-	6.9	-	-	-	-	(0.1)	6.8
Customer relationship	-	815.2	-	-	403.5	10.6	(8.5)	1,220.8
Supplier relationship	-	14.6	-	(2.0)	-	(10.6)	0.1	2.1
Software	-	504.3	40.3	(176.9)	2.7	146.3	(0.4)	516.3
		7,121.6	52.1	(178.9)	632.1	146.3	3.7	7,776.9
Amortization
Non-compete agreement	27.59%	(7.6)	(16.1)	-	-	-	0.3	(23.4)
Import quotas	73.63%	(21.7)	(63.5)	-	-	-	(7.9)	(93.1)
Outgrowers relationship	13.15%	(7.7)	(1.9)	-	-	-	-	(9.6)
Patents	27.42%	(3.9)	(1.1)	-	-	-	0.1	(4.9)
Customer relationship	7.59%	(81.3)	(72.2)	-	0.2	-	(1.2)	(154.5)
Supplier relationship	5.00%	(2.0)	(0.1)	2.0	-	-	-	(0.1)
Software	19.93%	(324.8)	(145.0)	175.5	-	-	0.6	(293.7)
		(449.0)	(299.9)	177.5	0.2	-	(8.1)	(579.3)
		6,672.6	(247.8)	(1.4)	632.3	146.3	(4.4)	7,197.6

	Weighted average amortization rate (p.a.)	12.31.15	Additions	Disposals	Business combination	Transfers	Exchange rate variation	12.31.16
Cost
Non-compete agreement	-	15.6	18.6	(0.3)	-	27.4	(10.3)	51.0
Goodwill	-	2,778.1	-	-	2,557.9	(432.1)	(560.4)	4,343.5
AKF	-	-	-	-	136.5	11.0	(18.0)	129.5
Alimentos Calchaquí	-	-	-	-	397.8	-	(55.8)	342.0
Ava	-	49.4	-	-	-	-	-	49.4
Avex	-	27.6	-	-	-	-	(8.8)	18.8
BRF AFC	-	196.1	-	-	-	-	(33.4)	162.7
BRF Holland B.V.	-	27.8	-	-	-	-	(5.3)	22.5
BRF Invicta	-	170.7	-	-	-	-	(51.7)	119.0
Dánica	-	7.0	-	-	-	-	(2.2)	4.8
Eclipse Holding Cooperatief	-	-	-	-	230.5	0.3	(20.9)	209.9
Eleva Alimentos	-	808.1	-	-	-	-	-	808.1
Federal Foods LLC	-	84.4	-	-	-	-	(13.9)	70.5
Federal Foods Qatar L.L.C	-	-	-	-	564.2	(182.9)	(72.9)	308.4
GFS Group	-	-	-	-	1,079.4	(199.1)	(195.8)	684.5
GQFE - Golden Quality Foods Europe	-	-	-	-	3.1	-	(0.7)	2.4
Incubatório Paraíso	-	0.7	-	-	-	-	-	0.7
Invicta Food Group	-	0.9	-	-	-	-	(0.3)	0.6
Paraíso Agroindustrial	-	16.8	-	-	-	-	-	16.8
Perdigão Mato Grosso	-	7.6	-	-	-	-	-	7.6
Quickfood	-	167.0	-	-	-	-	(53.2)	113.8
Sadia	-	1,214.0	-	-	-	-	-	1,214.0
Universal Meats Ltd.	-	-	-	-	146.4	(61.4)	(27.4)	57.6
Import quotas	-	62.3	-	-	-	17.5	(21.6)	58.2
Outgrowers relationship	-	14.2	0.5	-	-	-	-	14.7
Trademarks	-	1,372.0	-	-	-	5.9	(64.7)	1,313.2
Patents	-	4.8	2.4	-	0.6	-	(0.9)	6.9
Customer relationship	-	620.8	-	-	-	370.6	(176.2)	815.2
Supplier relationship	-	9.7	-	(6.5)	-	16.2	(4.8)	14.6
Software	-	462.9	41.2	(43.3)	5.7	53.5	(15.7)	504.3
		5,340.4	62.7	(50.1)	2,564.2	59.0	(854.6)	7,121.6
Amortization
Non-compete agreement	30.07%	(0.7)	(7.8)	0.3	-	-	0.6	(7.6)
Import quotas	50.00%	-	(25.6)	-	-	-	3.9	(21.7)
Outgrowers relationship	12.50%	(5.8)	(1.9)	-	-	-	-	(7.7)
Patents	24.07%	(3.0)	(1.1)	-	(0.6)	-	0.8	(3.9)
Customer relationship	7.71%	(49.8)	(47.3)	-	-	(2.7)	18.5	(81.3)
Supplier relationship	42.00%	(9.7)	-	6.5	-	-	1.2	(2.0)
Software	20.00%	(260.5)	(109.9)	41.1	(3.2)	(0.1)	7.8	(324.8)
		(329.5)	(193.6)	47.9	(3.8)	(2.8)	32.8	(449.0)
		5,010.9	(130.9)	(2.2)	2,560.4	56.2	(821.8)	6,672.6

Amortization of outgrowers relationship, suppliers relationship and import quotas amortization are recognized as a cost of sales in the statement of income, the amortization of customer relationship is recognized in selling expenses, while non-compete agreement, patents and software amortization is recorded according to its use as cost of sales, administrative or sales expenses.

Trademarks recorded in intangible assets come mainly from the business combination with Sadia, Quickfood and Avex and are considered assets with indefinite useful life.

The goodwill is based on expected future profitability supported by valuation reports, after purchase price allocation.

Goodwill and intangible assets with indefinite useful life (trademarks) are allocated to cash-generating units as presented in note 5.

The Company annually performs an impairment test of its assets through the discounted cash flow method. In 2017, BRF used its strategic plan as a basis for the test, which considers the future cash flows until 2020 and perpetuity of 3.84% from the same date, based on historical information and market projections of government agencies and associations, such as the International Monetary Fund (IMF), Brazilian Central Bank (BACEN), among others. In the Management’s opinion, the use of a three-year projection period is adequate as it provides more reliable information as well as greater security in evaluating the expected profitability of the tested assets.

Management adopted the weighted average cost of capital – WACC as the discount rate to the development of discount cash flow, that varied from 9.74% p.a. to 13.25% p.a., according to the reportable operating segment and also adopted the assumptions shown in the table below:

	2017	2018	2019	2020
GDB Brazil	0.70%	2.56%	3.11%	2.83%
Inflation Brazil	3.03%	4.20%	3.95%	3.84%

The rates above do not consider any tax effect.

Based on Management analyses performed during 2017, no impairment loss was identified.

In addition to the above mentioned recovery analysis, management prepared a sensitivity analysis for each reportable operating segment considering the variations in the EBIT margin and in the nominal WACC as presented below:

		Variations
Apreciation (devaluation)	1.0%	0.0%	-1.0%
BRAZIL
WACC (1)	12.99%	11.99%	10.99%
EBIT MARGIN	15.82%	14.82%	13.82%
INTERNATIONAL
WACC (1)	10.51%	9.51%	8.51%
EBIT MARGIN	8.98%	7.98%	6.98%
ONE FOODS
WACC (1)	11.94%	10.94%	9.94%
EBIT MARGIN	14.00%	13.00%	12.00%
SOUTHERN CONE
WACC (1)	14.25%	13.25%	12.25%
EBIT MARGIN	7.86%	6.86%	5.86%

⁽¹⁾       WACC in Reais for the Brazil segment and in USD for the other segments.

Based on the above scenarios, the Company determined that there is no need to recognize an impairment loss to the intangible assets with indefinite useful life.           

XML

19. LOANS AND FINANCING

12 Months Ended

Dec. 31, 2017

Loans And Financing

LOANS AND FINANCING

19. LOANS AND FINANCING

	Charges (p.a.)	Weighted average interest rate (p.a.)	WAMT (1)	Current	Non-current	12.31.17	Captured	Business combination (2)	Amortization	Interest paid	Interest accrued	Exchange rate variation	Price index update	Current	Non-current	12.31.16
Local currency
Working capital	7.79% (8.90% on 12.31.16)	7.79% (8.90% on 12.31.16)	0.8	1,631.5	923.9	2,555.4	3,579.4	-	(2,401.0)	(162.2)	213.0	-	-	1,326.1	-	1,326.1
Certificate of agribusiness receivables	96.51% of CDI / IPCA + 5,90% (96.50% of CDI / IPCA + 5,90% on 12.31.16)	7.41% (13.43% on 12.31.16)	2.4	1,097.9	2,473.8	3,571.7	780.0	-	(779.2)	(393.8)	334.6	-	-	168.1	3,462.0	3,630.1
Development bank credit lines	Fixed rate / Selic / TJLP + 1.48% (Fixed rate / Selic / TJLP + 0.75% on 12.31.16)	6.78% (7.93% on 12.31.16)	1.7	313.3	256.8	570.1	62.4	-	(403.8)	(37.3)	47.4	0.2	20.1	381.3	499.7	881.0
Bonds	7.75% (7.75% on 12.31.16)	7.75% (7.75% on 12.31.16)	0.4	503.8	-	503.8	-	-	-	(38.8)	46.4	-	(6.8)	4.1	498.8	502.9
Export credit facility	100.35% of CDI (13.68% on 12.31.16)	6.91% (13.68% on 12.31.16)	1.2	39.2	1,850.0	1,889.2	-	-	-	(214.3)	181.2	-	-	72.3	1,850.0	1,922.3
Special program asset restructuring	Fixed rate / IGPM + 4.90% (Fixed rate / IGPM + 4.90% on 12.31.16)	4.36% (12.09% on 12.31.16)	2.2	3.5	245.8	249.4	-	-	-	(8.1)	9.7	(1.7)	(2.2)	3.5	248.0	251.6
Other secured debts	(8.50% on 12.31.16)	(8.50% on 12.31.16)	-	-	-	-	-	-	(129.9)	(8.9)	9.2	-	-	32.3	97.3	129.6
Fiscal incentives	2.40% (2.40% on 12.31.16)	2.40% (2.40% on 12.31.16)	0.5	3.6	-	3.6	34.4	-	(30.9)	(0.2)	0.2	-	-	0.1	-	0.1
				3,592.8	5,750.3	9,343.0	4,456.3	-	(3,744.7)	(863.5)	841.7	(1.5)	11.1	1,987.9	6,655.7	8,643.7
Foreign currency
Bonds	4.08% (4.71% on 12.31.16) + e.r. US$, EUR and ARS	4.08% (4.71% on 12.31.16) + e.r. US$, EUR and ARS	6.0	105.1	8,424.8	8,529.9	77.1	-	(396.0)	(382.0)	410.4	326.7	-	489.2	8,004.4	8,493.6
Export credit facility	LIBOR + 1.85% (LIBOR + 2.71% on 12.31.16) + e.r. US$	3.35% (3.85% on 12.31.16) + e.r. US$	2.2	953.5	1,197.2	2,150.7	3,576.0	-	(2,981.2)	(98.5)	105.5	238.3	-	312.2	998.4	1,310.6
Advances for foreign exchange rate contracts	(2.39% on 12.31.16) + e.r. US$	(2.39% on 12.31.16) + e.r. US$	-	-	-	-	4.1	-	(203.4)	(4.7)	0.3	(9.1)	-	212.8	-	212.9
Development bank credit lines	UMBNDES + 1.73% (UMBNDES + 2.10% on 12.31.16) + e.r. US$ and other currencies	6.22% (6.24% on 12.31.16) + e.r. US$ and other currencies	1.0	2.6	1.0	3.6	-	-	(5.9)	(0.4)	1.2	(0.3)	-	5.9	3.0	8.9
Working capital	23.10% (14.28% on 12.31.16) + e.r. ARS / + e.r US$	23.10% (14.28% on 12.31.16) + e.r. ARS / + e.r US$	1.5	128.2	39.7	167.9	1,584.8	-	(1,629.4)	(19.8)	59.2	(119.7)	-	236.9	55.8	292.7
Working capital	15.95% + e.r TRY	15.95% + e.r TRY	0.1	249.2	-	249.2	-	389.2	(40.6)	-	5.1	(104.3)	-	-	-	-
				1,438.6	9,662.8	11,101.3	5,242.1	389.2	(5,256.5)	(505.5)	581.8	331.5	-	1,257.1	9,061.6	10,318.7
				5,031.4	15,413.0	20,444.4	9,698.4	389.2	(9,001.2)	(1,369.0)	1,423.5	330.1	11.1	3,245.0	15,717.4	18,962.4

⁽¹⁾ Weighted average maturity in years.

⁽²⁾ Balance arising from business combination with Banvit (note 6.1.3).

19.1. Working capital

Rural credit: The Company and its subsidiaries entered into rural credit loans with several commercial banks, under a Brazilian Federal government program that promotes investments in rural activities.

Working capital in foreign currency: Refers to credit lines taken from financial institutions and utilized primarily to short term working capital and import operations of subsidiaries located in Argentina and Turkey. The loans are denominated in Argentine Pesos and Turkey Lira with maturity in 2018.

19.2. CRA

On September 29, 2015, BRF completed the CRA issuance related to the public distribution offering of the 1st series of the 3rd Issue by Octante Securitizadora S.A. (“Securitization Company”) in the amount of R$1,000.0 net of interest, which will mature on October 01, 2018, and were issued with a coupon of 96.90% p.a. of the DI rate, payable every each 9 months. The CRAs arise from the Company’s exports contracted with BRF Global GmbH and were assigned and/or promised to the Securitization Company.

On April 19, 2016, BRF completed the CRA issuance related to the public distribution offering of the 1^st series of the 9^th Issue by Octante Securitizadora S.A. (“Securitization Company”) in the amount of R$1,000.0 net of interest, which will mature on April 19, 2019 and were issued with a coupon of 96.50% p.a. of the DI rate, payable each 9 months. The CRAs arise from the Company’s exports contracted with BRF Global GmbH and were assigned and/or promised to the Securitization Company.

On December 22, 2016, BRF completed the CRA issuance related to the public distribution offering of the 1^st and 2^nd series of the 1^st Issue by Vert Companhia Securitizadora, in the amount of R$1,500.0 net of interest. The 1^st series CRA were issued with a coupon of 96.00% p.a. of the DI rate, with will mature on December 16, 2020 and payable every each 8 months. The 2^nd series CRA were issued with a coupon of 5.8970% p.a. updated by the Amplified Consumer Price Index (“IPCA”), with will mature on December 18, 2023 and with interest payable each 16 or 18 month. The CRAs arise from the Company’s exports contracted with BRF Global GmbH and BRF Foods GmbH.

On August 15, 2017, the CRA related to the issuance of December 16, 2016 and linked to the public offering of the 1st. Series was transferred to SHB, based on exports between SHB and BRF Foods Gmbh. The conditions negotiated at the date of issue remain in force.

19.3. Development bank credit lines

The Company and its subsidiaries have several outstanding obligations with National Bank for Economic and Social Development (“BNDES”). The loans were obtained for the acquisition of equipment and expansion of productive facilities.

FINEM: Credit lines of Financing for Enterprises ("FINEM") which are subject to the variations of UMBNDES, TJLP and SELIC currency basket. The values ​​of principal and interest are paid in monthly installments, with maturities between 2018 and 2020 and are secured by pledge of equipment, facilities and mortgage on properties owned by the Company.

FINEP: Credit lines of Financial of Studies and Projects (“FINEP”) obtained with reduced charges for projects of research, development and innovation, with maturities dates between 2018 and 2019.

19.4. Bonds

Senior Notes BRF 2018: On May 15, 2013, BRF completed international offering of 5 year bonds in the aggregate amount of R$500.0 (the “BRL Bonds”) which will mature on May 22, 2018 (“Senior Notes BRF 2018”), issued with a coupon (interest) of 7.75% p.a. (yield to maturity 7.75%), payable semi-annually beginning as from November 22, 2013.

BFF Notes 2020: On January 28, 2010, BFF International Limited issued senior notes in the total value of R$1,392.0, whose notes are guaranteed by BRF, with a nominal interest rate of 7.25% p.a. and effective rate of 7.54% p.a. maturing on January 28, 2020. On June 20, 2013, the amount of R$271.9 of these senior notes was exchanged by Senior Notes BRF 2023 and on May 15, 2014, the amount of R$908.0 was repurchased with part of the proceeds obtained from the Senior Notes BRF 2024. On May 28, 2015, the Company concluded a Tender Offer, in amount of R$321.8, such that the outstanding balance amounted to R$375.5 and the premium paid, net of interest, was R$50.7. On September 14, 2016, the Company concluded a Tender Offer, in amount of R$107.0, being the premium paid, net of interest, was R$13.6. The premium paid to holders of existing bonds was recorded as a financial expense.

Senior Notes BRF2022: On June 6, 2012, BRF issued senior notes of R$1,009.2, with nominal interest rate of 5.88% p.a. and an effective rate of 6.00% p.a. maturing on June 6, 2022. On June 26, 2012, the Company reopened this transaction for an additional amount of R$518.6, with nominal interest rate of 5.88% p.a. and effective rate of 5.50% p.a. On May 28, 2015, the Company concluded a Tender Offer, in amount of R$1,832.3, such that the outstanding balance amounted to R$548.8 and the premium paid, net of interest, was R$251.9. On September 14, 2016, the Company concluded a Tender Offer, in amount of R$180.3, being the premium paid, net of interest, was R$18.9. The premium paid to holders of existing bonds was recorded as a financial expense.

Senior Notes BRF 2022 (“Green Bonds”): On May 29, 2015, BRF concluded a Senior Notes offer of 7 (seven) year in the total amount of R$1,747.1, which will mature on May 03, 2022 (“Senior Notes BRF 2022”), issued with a coupon (interest) of 2.75% p.a. (yield to maturity 2.822%), payable annually beginning on June 03, 2016.

Senior Notes BRF 2023: On May 15, 2013, BRF completed international offerings of 10 years bonds in the aggregate amount of R$1,011.7 (the “USD Bonds”), which will mature on May 22, 2023 (“Senior Notes BRF 2023”), issued with a coupon (interest) of 3.95% per year (yield to maturity 4.135%), payable semi-annually beginning on November 22, 2013.

Senior Notes BRF 2024: On May 15, 2014, BRF completed international offerings of 10 years bonds in the aggregate amount of R$1,662.5 (the “USD Bonds”), which will mature on May 22, 2024 (“Senior Notes BRF 2024”), issued with a coupon (interest) of 4.75% p.a. (yield to maturity 4.952%), payable semi-annually beginning on November 22, 2014.

Senior Notes BRF 2026: On September 29, 2016, BRF through its wholly-owned subsidiary BRF GmbH concluded a Senior Notes offer of 10 years in the total amount of R$1,611.8, with will mature on September 29, 2026, issued with a coupon (interest) of 4.35% p.a. (yield to maturity de 4.625%), payable semi-annually beginning on March 29, 2017.

19.5. Export credit facilities

Export prepayments: Under the terms of each of these credit facilities, the Company entered into loans which must be evidenced subsequently by the trade accounts receivable related to the exports of its products, with maturity between 2018 and 2019.

Commercial credit lines: Denominated in U.S. Dollars with quarterly payments of interest and principal maturing in 2018 and are utilized for purchases of imported raw materials and other working capital needs.

19.6. Special Program Asset Recovery (“PESA”)

The Company has a loan facility obtained through the Special Program for Asset Recovery (“Programa Especial de Saneamento de Ativos”) promoted by the federal government and securitized by commercial financial institutions. Such loan facility is subject to the variations of the General Market Price Index (“IGPM”) plus interest of 4.90% p.a. The principal is payable in a single installment with maturity date in 2020, being secured by endorsements and pledges of public debt securities (note 15).

19.7. Rotative credit line (“Revolver Credit Facility”)

With the purpose of improving its financial liquidity, the Company and its wholly-owned subsidiary BRF Global GmbH obtained a credit line Revolver Credit Facility ("Revolver Credit Facility") in the amount of US$1,000.0, with a maturity date in May 2019, from a syndicate comprised of 28 banks. The transaction was structured to allow the Company to utilize the credit line at any time, during the contracted period. In April 2017, the company used US$650.0 of the credit line with a LIBOR rate of + 1.25% and maturity in May 2019. The Company settled in advance the credit line used in October 2017.

19.8. Loans and financing maturity schedule

The maturity schedule of the loans and financing balances is as follows:

	12.31.17
2018	5,031.4
2019	3,983.9
2020	1,684.7
2021	125.4
2022	3,106.2
2023 onwards	6,512.8
	20,444.4

19.9. Guarantees

	12.31.17	12.31.16
Total of loans and financing	20,444.4	18,962.4
Mortgage guarantees	577.2	1,019.6
Related to FINEM-BNDES	462.8	771.3
Related to FNE-BNB	-	129.6
Related to tax incentives and other	114.4	118.7

The Company is the guarantor of a loan obtained by Instituto Sadia de Sustentabilidade from the BNDES. The loan was obtained with the purpose of allowing the implementation of biodigesters in the farms of the outgrowers which take part in the Company´s integration system, targeting the reduction of the emission of Greenhouse Gases. The value of these guarantees on December 31, 2017 totaled R$17.3 (R$28.4 as of December 31, 2016).

The Company is the guarantor of loans related to a special program, which aimed the local development of outgrowers in the central region of Brazil. The proceeds of such loans are utilized by the outgrowers to improve farm conditions and will be paid by them in 10 years, taking as collateral the land and equipment acquired by the outgrowers through this program. The guarantee as of December 31, 2017 totaled R$87.1 (R$138.5 as of December 31, 2016).

On December 31, 2017, the Company contracted bank guarantees in the amount of R$1,477.8 (R$1,934.5 as of December 31, 2016) offered mainly in litigations involving the Company´s use of tax credits. These guarantees have an average cost of 1.09% p.a. (0.90% p.a. as of December 31, 2016).

19.10. Commitments

In the normal course of the business, the Company enters into agreements with third parties which are mainly related to the purchase of raw materials, such as corn and soymeal, where the agreed prices can be fixed or to be fixed. The Company enters into other agreements, such as electricity, packaging supplies and manufacturing activities. The amounts of the agreements at the date of these financial statements are set forth below:

	12.31.17
2018	4,862.1
2019	922.9
2020	346.9
2021	208.7
2022	100.8
2023 onwards	123.0
	6,564.4

XML

20. TRADE ACCOUNTS PAYABLE

12 Months Ended

Dec. 31, 2017

Trade Accounts Payable

TRADE ACCOUNTS PAYABLE

20. TRADE ACCOUNTS PAYABLE

	12.31.17	12.31.16
Domestic suppliers
Third parties	4,451.1	4,148.1
Related parties	16.6	13.1
	4,467.7	4,161.2
Foreign suppliers
Third parties	2,030.6	1,727.5
Related parties	-	-
	2,030.6	1,727.5
(-) Adjustment to present value	(52.8)	(48.9)
	6,445.5	5,839.8

In the year ended on December 31, 2017, the average payment period is 97 days (99 days on December 31, 2016).

On the suppliers balance as of December 31, 2017, R$1,787.7 (R$1,556.5 as of December 31, 2016) corresponds to the supply chain finance transactions on which there were no changes in the payment terms and prices negotiated with the suppliers.

The information on accounts payable involving related parties is presented in note 30. The trade accounts payable to related parties refer to transactions with associates UP! in domestic market.

XML

21. SUPPLY CHAIN FINANCE

12 Months Ended

Dec. 31, 2017

Supply Chain Finance

SUPPLY CHAIN FINANCE

21. SUPPLY CHAIN FINANCE

	12.31.17	12.31.16
Supply chain finance - Domestic suppliers	518.4	1,007.1
Supply chain finance - Foreign suppliers	196.8	328.5
	715.2	1,335.6

The Company has partnerships with several financial institutions that allow the suppliers to anticipate their receivables. The suppliers do have the freedom to choose whether to anticipate or not and, if positive, with which institution. The anticipation allows the suppliers to better manage their cash flow needs. This flexibility allows the Company to intensify its commercial relations with the network of suppliers by potentially leveraging benefits such as preference for supply in case of restricted supply, better price conditions and / or more flexible payment terms, among others.

The Company has not identified a material change in the existing commercial conditions with its suppliers.

As such, these transactions are presented in the operating cash flows for the year ended December 31, 2017 and December 31, 2016.

On December 31, 2017, the discount rates applied to the supply chain finance transactions agreed between our suppliers and the financial institutions in the internal market were set between 0.57% to 0.84% p.m. (1.08% to 1.33% p.m. on December 31, 2016).

On December 31, 2017, the discount rates applied to the supply chain finance transactions agreed between our suppliers and the financial institutions in the external market were set between 0.19% to 0.29% p.a. (0.17% to 0.25% p.m. on December 31, 2016).

XML

22. OTHER FINANCIAL ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2017

Other Financial Assets And Liabilities

OTHER FINANCIAL ASSETS AND LIABILITIES

22. DERIVATIVE FINANCIAL INSTRUMENTS

	12.31.17	12.31.16
Derivatives designated as hedge accounting
Assets
Non-deliverable forward (NDF)	1.1	76.3
Currency option contracts	23.6	118.7
Commodities (corn) non-deliverable forward (NDF)	0.8	2.4
Commodities (Soy) non-deliverable forward (NDF)	1.1	-
Corn option contracts	0.8	-
Commodities (Soybean oil) non-deliverable forward (NDF)	0.1	-
	27.5	197.4
Liabilities
Non-deliverable forward of currency (NDF)	(6.8)	(1.8)
Commodities (soybean) non-deliverable forward (NDF)	(3.0)	(0.9)
Commodities (soybean oil) non-deliverable forward (NDF)	(0.1)	-
Currency option contracts	(25.9)	(35.1)
Corn option contracts	(0.6)	-
Soybean option contracts	(1.5)	-
Deliverable forwards contracts	-	(0.3)
Commodities (corn) non-deliverable forward (NDF)	(4.6)	(0.6)
Corn and soymeal future contracts - B3	-	-
Exchange rate contracts currency (Swap)	(166.3)	(184.2)
	(208.8)	(222.9)
Derivatives not designated as hedge accounting
Assets
Non-deliverable forward of currency (NDF)	36.4	-
Currency option contracts	1.5	-
Exchange rate contracts currency (Swap)	25.1	0.4
	63.0	0.4
Liabilities
Non-deliverable forward of currency (NDF)	(2.0)	(83.0)
Currency option contracts	(2.0)	-
Swap (index / Currency / stocks)	(86.5)	(218.5)
Dollar future contracts - B3	(0.2)	(5.2)
	(90.7)	(306.7)
	-	-
Current assets	90.5	198.0
Current liabilities	(299.5)	(529.6)

The collateral given in the transactions presented above are disclosed in note 8.

XML

23. LEASES

12 Months Ended

Dec. 31, 2017

Leases

LEASES

23. LEASES

The Company is lessee in several contracts, which can be classified as operating or finance lease.

23.1. Operating lease

The minimum future payments of non-cancellable operating lease are presented below:

	12.31.17
2018	374.9
2019	76.8
2020	44.6
2021	34.5
2022	31.7
2023 onwards	93.0
	655.5

The payments of operating lease agreements recognized as expense in the year ended December 31, 2017 amounted to R$306.7 (R$308.3 as of December 31, 2016).

23.2. Finance lease

The Company enters into finance leases mainly for the acquisitions of machinery, equipment, vehicles, software and buildings, presented below:

	Weighted average interest rate (p.a.) (1)	12.31.17	12.31.16
Cost
Machinery and equipment		98.1	115.8
Software		97.1	78.7
Vehicles		0.3	0.5
Land		1.4	1.7
Buildings		218.8	144.4
Facilities		14.7	-
		430.4	341.1
Accumulated depreciation
Machinery and equipment	44.88%	(45.3)	(38.4)
Software	80.00%	(84.6)	(63.5)
Vehicles	20.00%	(0.2)	(0.3)
Buildings	8.33%	(59.1)	(44.1)
Facilities	6.67%	(0.7)	-
		(189.9)	(146.3)
		240.5	194.8

⁽¹⁾ The period of depreciation of leased assets corresponds to the lowest of term of the contract and the useful life of the asset, as determined by IAS 17.

The minimum future payments required for these finance leases are segregated as follows, and were recorded in current and non-current liabilities:

	12.31.17
	Present value of minimum payments	Interest	Minimum future payments
2018	51.7	20.9	72.5
2019	43.3	20.2	63.5
2020	30.4	15.0	45.4
2021	20.4	9.0	29.4
2022	16.1	8.3	24.4
2023 onwards	70.7	46.8	117.6
	232.6	120.2	352.8

The contract terms for both modalities, with respect to renewal, adjustment and purchase option, are according to market practices. In addition, there are no clauses of contingent payments or restrictions on dividends distribution, payments of interest on shareholders’ equity or obtaining debt.

The Company also has commitments regarding financial leases, related to a built to suit agreement for the construction of facilities which will be build by third parties. The agreements terms will be 13 years from the signing date as well as the charge of rent expenses. If the Company defaults on its obligations, it will be subject to fines and/or acceleration of rent outstanding installments falling due, according to the terms of the contract.

The estimated schedule of future payments related to this agreement is set forth below:

	12.31.17
2018	-
2019	9.4
2020	9.4
2021	9.4
2022	9.4
2023 onwards	84.9
	122.5

XML

24. SHARE BASED PAYMENT

12 Months Ended

Dec. 31, 2017

Share Based Payment

SHARE BASED PAYMENT

24.         SHARE BASED PAYMENT

24.1.     Stock options plan

The Company grants stock options to its employees eligible by the Board of Directors, which are determined in stock options plans that were approved by an Ordinary and a Special Meeting of Shareholders on March 31, 2010 (Plan I) and April 08, 2015 (Plan II).

Plan I comprise two instruments: (i) annual stock option grant, and (ii) an additional stock option grant, which the employee might adhere using part of its profit sharing bonus. Plan II comprises only the annual grant.

The vesting conditions are based on attainment of results and in the value of the Company businesses.

The plans include shares issued by the Company up to the limit of 2% of the total stock, and its purpose is to: (i) attract, retain and motivate the beneficiaries, (ii) add value for shareholders, and (iii) encourage the view of entrepreneur of the business.

The plans are managed by the Board of Directors, within the limits established by the general guidelines of the plan and applicable legislation.

The quantity of granted options is determined by the Board of Directors, with an exercise price equivalent to the average amount of the closing price of the share at the last twenty trading sessions of the B3, prior to the grant date. The exercise price is updated monthly by the variation of the Amplified Consumer Price Index (“IPCA”) between the grant date and the month prior to the option exercise notice by the beneficiary.

The vesting period during which the participant can not exercise the purchase of the shares for Plan I is 1 to 3 years and for Plan II is 1 to 4 years, respecting the following deadlines from the grant date of the option.

Plan I		Plan II
Quantity	Deadline	Quantity	Deadline
1/3	1 year	1/4	1 year
2/3	2 years	2/4	2 years
3/3	3 years	3/4	3 years
-	-	4/4	4 years

After the vesting period and within no more than five years for Plan I and six years for Plan II from the grant date, the beneficiary is no longer entitled to the right to the unexercised options. To satisfy the exercise of the options, the Company may issue new shares or use shares held in treasury.

According to the ordinary meeting of the Board of Directors held on March 30, 2017 and November 30, 2017, the granting of 863,528 and 290,771 options, respectively, was approved.

The breakdown of the outstanding granted options is presented as follows:

Date			Quantity		Grant (1)	Strike price (1)
Grant date	Beggining of exercise period	End of the exercise period	Options granted	Outstanding options	Fair value of the option	Granting date	Updated IPCA
Plan I
05.02.13	05.01.14	05.01.18	3,490,201	304,968	11.88	46.86	62.12
04.04.14	04.03.15	04.03.19	1,552,564	483,201	12.56	44.48	55.85
05.02.14	05.01.15	05.01.19	1,610,450	670,107	14.11	47.98	59.84
12.18.14	12.17.15	12.17.19	5,702,714	3,102,620	14.58	63.49	77.15
			12,355,929	4,560,896
Plan II
04.26.16	04.30.17	12.30.22	8,724,733	4,375,000	9.21	56.00	59.09
05.31.16	05.31.17	12.30.22	3,351,220	2,303,260	10.97	46.68	48.87
03.30.17	03.30.18	12.29.23	863,528	635,442	9.45	38.43	39.01
12.01.17	12.01.18	12.29.23	290,771	290,771	7.91	41.69	41.69
			13,230,252	7,604,473
			25,586,181	12,165,369

⁽¹⁾     Amounts expressed in Brazilian Reais

24.2.     Stock options plan – Restricted shares

On August 31, 2017, 716,486 restricted shares were granted in accordance with the plan that were approved by an Ordinary and a Special Meeting of Shareholders on April 26, 2017. The purpose of this plan is: (i) to stimulate the expansion, success and achievement of the Company's social objectives; (ii) to align the interests of the Company's shareholders with those of the eligible persons; and (iii) to enable the Company and the companies under its control to attract and retain the persons related to it.

Under the terms of the plan, directors may be elected, statutory or not, and people occupying other positions of the Company or subsidiaries. The granting of rights to beneficiaries is conditional on: (i) continuity of the employment relationship with the Company for 3 years after the grant date; (ii) achievement of a minimum shareholder return defined by the Board of Directors in the granting agreements and determined at the end of the vesting period; or (iii) any other conditions determined by the Board of Directors in each grant made.

Each year, or whenever it deems it appropriate, the Board of Directors shall approve the granting of restricted shares, electing the beneficiaries in favor of which the Company will sell the restricted shares, establishing the terms, quantities and conditions of acquisition of rights related to restricted shares.

The total number of restricted shares that may be granted under the plan shall not exceed 0.5% of the registered common shares, in book-entry form without par value, representing the Company's total share capital.

Date		Quantity		Grant (1)
Grant	Term of acquisition of right	Shares granted	Outstanding shares	Fair value of the shares
Restricted stock plan
08.31.17	08.31.19	716,846	706,820	41.85
		716,846	706,820

24.3.     Rollforward of the stock options plan and outstanding granted options

The rollforward of the outstanding granted options for the year ended December 31, 2017 is presented as follows:

Outstanding options as of December 31, 2016	16,506,807
Issued - grant of 2017
November 2017	290,771
August 2017 - Restricted stock plan	716,846
March 2017	863,528
Forfeited:
Grant of 2017	(228,086)
Grant of 2017 (Restricted stock)	(10,026)
Grant of 2016	(2,681,350)
Grant of 2014	(1,725,218)
Grant of 2014	(152,145)
Grant of 2013	(415,017)
Grant of 2012	(293,921)
Outstanding options as of December 31, 2017	12,872,189

The weighted average exercise prices of the outstanding options conditioned to services is R$60.29 (sixty Brazilian Reais and twenty-nine cents), and the weighted average of the remaining vesting period is 34 months.

The Company records as capital reserve in shareholders’ equity the fair value of the options in the amount of R$261.8 (R$236.2 as of December 31, 2016). In the statement of income in the year ended December 31, 2017 the amount recognized as expense was R$25.6 (R$43.5 as of December 31, 2016).

During the year ended on December 31, 2017, no executive exercised stock options.

24.4.     Fair Value Measurement

The weighted average fair value of options outstanding as of December 31, 2017 was R$11.36 (eleven Brazilian Reais and thirty-six cents) (R$11.54 as of December 31, 2016). The fair value of the stock options was measured using the Black-Scholes pricing model, based on the following assumptions:

	12.31.17
	Plan I	Plan II
Expected maturity of the option:
Exercise in the 1st year	3.0 years	3.5 years
Exercise in the 2nd year	3.5 years	4.0 years
Exercise in the 3rd year	4.0 years	4.5 years
Exercise in the 4th year	-	5.0 years
Risk-free interest rate	5.09%	6.25%
Volatility	26.05%	27.07%
Expected dividends over shares	1.23%	2.40%
Expected inflation rate	3.71%	3.79%

24.5.     Expected period

The expected period is that in which it is believed that the options will be exercised and was determined under the assumption that the beneficiaries will exercise their options at the limit of the exercise period.

24.6.     Risk-free interest rate

The Company uses as risk-free interest rate the National Treasury Bond (“NTN-B”) available on the date of calculation and with maturity equivalent to the terms of the option.

24.7.     Volatility

The estimated volatility considered the weighting of the trading history of the Company’s shares.

24.8.     Expected dividends

The percentage of dividends used is based on the average payment of dividends per share in relation to the market value of the shares for the past four years.

24.9.     Expected inflation rate

The expected average inflation rate is based on estimated IPCA by Central Bank of Brazil, considering the remaining average terms of the option.

XML

25. EMPLOYEES BENEFITS PLANS

12 Months Ended

Dec. 31, 2017

Employees Benefits Plans

EMPLOYEES BENEFITS PLANS

25. EMPLOYEES BENEFITS PLANS

25.1. Pension plans

The Company sponsors pension plans for its employees and executives as presented below:

Plan	Modality	Adhesions
Plan I	Defined Contribution	Closed
Plan II	Defined Contribution	Closed
Plan III	Defined Contribution	Open
FAF	Defined Benefit	Closed

These plans are managed by BRF Previdência a pension fund entity of non-economic nature and non-profit, through its Deliberative Board which is responsible for defining pension premises and policies, as well as establishing fundamentals guidelines and organization, operation and management rules. The Deliberative Board is composed of representatives from the sponsor and participants, the proportion of 2/3 and 1/3 respectively.

a. Defined benefit plans

Plan I and II are structured as defined benefit during the accumulation of mathematics provisions with option to change the account balance to be applicable in lifetime monthly income on the grant date benefit. The main actuarial risks are (i) survival time over the ones set out in the mortality tables and (ii) actual return on equity below the actual discount rate.

The main purpose of FAF plan is to supplement the benefit paid by the Brazilian Social Security (“INSS – Instituto Nacional de Securidade Social”), calculated proportionally according to the length of service performed and in line with the type of retirement. The main actuarial risks are (i) survival time over the ones set out in the mortality tables, (ii) turnover lower than expected, (iii) salary growth higher than expected, (iv) actual return on assets below the actual discount rate, (v) amendment of the rules of social security and actual family composition of the retired employee or executive different from the established assumption.

In plans I and II, the contributions performed by the participants are made by the sponsor in equal basic contributions. In the Plan FAF, the contribution is made through a percentage actuarially defined for the participant and the sponsor. The actuarial calculations of the plans managed by BRF Previdência are made by independent actuaries, on an annual basis, according to the rules in force.

In case of a deficit result in plans, it must be supported by the sponsor, participants and beneficiaries, in the proportion of their contributions.

The economic benefit presented as an asset, considers only the part of the surplus that is actually recoverable. The form of recovery of the surplus of the plans will be through reductions in future contributions.

b. Defined contribution plan

Plan III is a defined contribution plan, where contributions are known and the benefit amount depends directly on the contributions made by participants and sponsors, time of contribution and of the result obtained through investment of contributions. The contributions are made on a 1 to 1 basis (the contributions of the sponsor are equal to the basic contributions of the participants) and that may vary from 0.7% to 7.0% according to the salary range of the participant. The contributions made by the Company in the years ended December 31, 2017 and December 31, 2016 amounted R$15.9 and R$11.6 respectively. On December 31, 2017, the plan has 31,850 participants (30,678 participants as of December 31, 2016).

If participants of the plans I, II and III end the employment relationship with the sponsor, the balance formed by the contributions of the sponsor not used for the payment of benefits, will form a fund of overage of contributions that may be used to compensate the future contributions of the sponsor.

c. Rollforward of defined benefit plans

The assets and actuarial liabilities are presented below:

	FAF		Plano I and II
	12.31.17	12.31.16	12.31.17	12.31.16
Composition of actuarial assets and liabilities
Present value of actuarial liabilities	2,275.9	2,000.3	16.0	15.2
Fair value of assets	(3,077.4)	(2,838.6)	(26.7)	(26.5)
(Surplus) Deficit	(801.5)	(838.3)	(10.7)	(11.3)
Irrecoverable surplus - (asset ceiling)	801.5	838.3	8.5	8.1
Net actuarial (assets) liabilities	-	-	(2.2)	(3.2)
Rollforward of irrecoverable surplus
Beginning balance of irrecoverable surplus	838.3	743.6	8.1	4.4
Interest on irrecoverable surplus	93.9	90.3	0.9	0.5
Changes in irrecoverable surplus during the year	(130.7)	4.4	(0.5)	3.1
Ending balance of irrecoverable surplus	801.5	838.3	8.5	8.0
Rollforward of present value of actuarial liabilities
Beginning balance of the present value of liabilities	2,000.3	1,675.5	15.2	12.9
Interest on actuarial obligations	217.3	197.1	1.6	1.5
Current service cost	26.8	23.4	-	-
Benefit paid	(117.5)	(105.0)	(1.5)	(1.2)
Contributions of the sponsor	-	0.3	-	-
Actuarial losses - experience	(48.7)	27.5	(0.6)	1.0
Actuarial losses - hypothesis	197.6	153.5	1.2	1.0
Actuarial losses - demographic hypothesis	-	28.3	-	-
Ending balance of actuarial liabilities	2,275.9	2,000.5	16.0	15.2
Rollforward of fair value assets
Beginning balance of the fair value of plan assets	(2,838.7)	(2,419.0)	(26.5)	(21.9)
Interest income on assets plan	(311.2)	(287.4)	(2.9)	(2.6)
Transfers	-	(38.0)	-	-
Benefit paid	117.5	105.0	1.5	1.2
Contributions paid by the sponsor	-	(0.1)	-	-
Contributions paid by the employee	-	(0.3)	-	-
Return on assets higher (lower) than projection	(45.0)	(237.0)	1.2	(3.1)
Early elimination of obligations	-	38.0	-	-
Ending balance of fair value assets	(3,077.4)	(2,838.8)	(26.7)	(26.4)
Rollforward of comprehensive income
Beginning balance	23.3	27.4	(2.1)	(1.5)
Reversion to statement of income	(23.3)	(27.4)	2.1	1.5
Actuarial gains (losses)	(148.9)	(209.2)	(0.6)	(2.1)
Return on assets higher (lower) than projection	45.0	237.0	(1.2)	3.1
Changes on irrecoverable surplus	130.7	(4.4)	0.5	(3.1)
Ending balance of comprehensive income	26.8	23.4	(1.3)	(2.1)
Costs recognized in statement of income
Current service costs	(26.8)	(23.4)	-	-
Interest on actuarial obligations	(217.3)	(197.1)	(1.6)	(1.5)
Projected return on assets	311.2	287.4	2.9	2.6
Interest on irrecoverable surplus	(93.9)	(90.3)	(0.9)	(0.5)
Costs recognized in statement of income	(26.8)	(23.4)	0.4	0.6
Estimated costs for the next year
Costs of defined benefit	(28.0)	(26.8)	0.2	0.4
Estimated costs for the next year	(28.0)	(26.8)	0.2	0.4

d. Actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are summarized below:

	FAF		Plan I e II
	12.31.17	12.31.16	12.31.17	12.31.16
Actuarial assumptions
Economic hypothesis
Discount rate	9.74%	11.20%	9.72%	11.25%
Inflation rate	4.25%	4.85%	4.25%	4.85%
Wage growth rate	4.93%	5.53%	N/A	N/A
Demographic hypothesis
Schedule of mortality	AT-2000	AT-2000	AT-2000	AT-2000
Schedule of disabled mortality	RRB-1983	RRB-1983	RRB-1983	RRB-1983
Demographic data
Number of active participants	7,924	8,384	-	-
Number of participants in direct proportional benefit	10	41	-	-
Number of assisted beneficiary participants	6,233	5,984	51	54

e. The composition of the investment portfolios

The composition of the investment portfolios is presented below:

	FAF				Plans I and II
	12.31.17		12.31.16		12.31.17		12.31.16
Composition of the fund's portfolio
Fixed income	2,238.1	72.7%	2,110.8	74.4%	23.1	86.4%	23.0	87.1%
Variable income	363.6	11.8%	339.8	12.0%	2.5	9.3%	2.9	10.8%
Real estate	197.7	6.4%	227.9	8.0%	-	0.0%	-	-
Structured investments	257.5	8.4%	141.6	5.0%	1.1	4.1%	0.5	1.9%
Transactions with participants	20.4	0.7%	18.5	0.6%	-	0.2%	0.1	0.2%
	3,077.4	100.0%	2,838.6	100.0%	26.7	100.0%	26.5	100.0%
% of nominal return on assets	10.90%		14.90%		8.92%		13.19%

f. Forecast and average term of payments of obligations

The following amounts represent the expected benefit payments for future years and the average duration of the plan obligations:

	FAF	Plans I and II
2018	128.7	1.2
2019	137.5	1.3
2020	147.6	1.3
2021	160.1	1.4
2022	171.8	1.4
2023 to 2027	1,039.3	7.7
Weighted average duration - in years	12.48	10.23

g. Sensitivity analysis of defined benefit plan - FAF

The quantitative sensitivity analysis regarding the relevant assumptions of defined benefit plan – FAF on December 31, 2017 is presented below:

		Variation of (+1%)		Variation of (-1%)
Relevant assumptions	Assumptions utilized	Average rate	Actuarial liabilities (1)	Average rate	Actuarial liabilities (1)
Benefit plan - FAF
Discount rate	9.74%	10.74%	(252.0)	8.74%	292.7
Wage growth rate	4.93%	5.93%	74.7	3.93%	(53.1)

⁽¹⁾ Variation of actuarial liabilities.

25.2. Employee benefits: description and characteristics of benefits and associated risks

	Liabilities
	12.31.17	12.31.16
Medical assistance	132.8	112.3
F.G.T.S. Penalty (1)	161.3	137.2
Award for length of service	49.3	52.0
Other (2)	51.4	28.6
	394.8	330.1
	-	-
Current	85.2	76.7
Non-current	309.6	253.4

⁽¹⁾ FGTS – Government Severance Indemnity Fund for Employees

⁽²⁾ Post-employment benefit paid at the moment of employee’s termination in the amount of R$20.1 arising from business combination with Banvit.

The Company offers the following post-employment and other employee benefits plans in addition to the pension plans, which are measured by actuarial calculation and recognized in the financial statement:

a. F.G.T.S. retirement related penalty

As settled by the Regional Labor Court (“TRT”) on April 20, 2007, retirement does not affect the employment contract between the Company and its employees. The benefit paid is equivalent to 50% of F.G.T.S being 40% corresponding to a penalty and 10% of social contribution. Main actuarial risks related are (i) survival time over the ones set out in the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

b. Medical Plan

The Company offers to the retired employee according to the Law No. 9,656/98 a medical plan with fixed contribution, which guarantees to the retired employee that contributed to the health plan by reason of employment relationship, for at least 10 years, the right of maintenance as beneficiary, on the same conditions of coverage enjoyed when the employment contract was in force. Main actuarial risks related are (i) survival time over the ones set out in the mortality tables, (ii) turnover lower than expected and (iii) medical costs growth higher than expected.

c. Award for length of service

The Company usually rewards employees that attain at least 10 years of services rendered and subsequently every 5 years, with an additional remuneration ranging from 1 to 5 current salaries at the date of the event (the longer the service time the higher the remuneration), provided they remain as active employees. Main actuarial risks related are (i) survival time over the ones set out in the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

d. Retirement compensation

On retirement, employees with over 10 years of service to the Company are eligible for additional compensation from 1 to 2 current wages in force at the time of retirement. Main actuarial risks related are (i) survival time higher than the ones set out in the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

e. Life insurance

The Company offers life insurance benefit to the employees who, at the time of their termination, are retired and during the employment contract opted for the insurance. For the employees with 10-20 years of service, the maintenance period of insurance is 2 years, from 21 years of service, the period is 3 years. Main actuarial risks related are (i) survival time higher than the ones set out in the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

f. Rollforward of post-employment plans

The rollforward of actuarial liabilities related to other benefits, prepared based on an actuarial report, are as follows:

	Medical plan		F.G.T.S. penalty		Award for length of service		Others (1)
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Composition of actuarial liabilities
Present value of actuarial liabilities	132.8	112.3	161.3	137.2	49.3	52.0	31.2	28.6
Net actuarial liabilities	132.8	112.3	161.3	137.2	49.3	52.0	31.2	28.6
Rollforward of present value of actuarial liabilities
Beginning balance of present value of actuarial liabilities	112.3	130.0	137.2	105.2	52.0	41.4	28.6	22.4
Interest on actuarial liabilities	12.3	15.4	13.2	10.7	5.1	4.2	2.9	2.4
Early settlement of liabilities	-	(0.1)	-	(13.8)	-	(4.3)	-	(2.5)
Current service costs	0.2	0.2	6.0	4.3	2.1	1.4	0.9	0.6
Past service costs - changes in plan	2.9	0.1	-	13.8	-	4.3	-	2.5
Benefits paid directly by the Company	(1.1)	(5.5)	(16.6)	(7.9)	(9.5)	(10.4)	(4.1)	(2.9)
Actuarial (gains) losses - experience	(5.1)	(38.1)	14.8	7.5	-	7.3	2.0	2.9
Actuarial (gains) losses - demographic hypothesis	(2.4)	(0.4)	(4.3)	13.8	(1.8)	7.1	(0.8)	2.2
Actuarial losses - economic hypothesis	13.7	10.6	11.1	3.7	1.4	0.9	1.7	0.9
Ending balance of liabilities	132.8	112.3	161.3	137.2	49.3	52.0	31.2	28.6
Rollforward of fair value assets
Benefits paid directly by the Company	1.1	5.5	16.6	7.9	9.5	10.4	4.1	2.9
Contributions of the sponsor	(1.1)	(5.5)	(16.6)	(7.9)	(9.5)	(10.4)	(4.1)	(2.9)
Ending balance of fair value of assets	-	-	-	-	-	-	-	-
Rollforward of comprehensive income
Beginning balance	(31.2)	(59.0)	(64.9)	89.8	(38.0)	(22.7)	(12.9)	(6.9)
Actuarial gains (losses)	(6.2)	27.8	(21.6)	(25.0)	0.5	(15.3)	(3.0)	(6.0)
Ending balance of comprehensive income	(37.4)	(31.2)	(86.5)	64.8	(37.5)	(38.0)	(16.0)	(12.9)
Costs recognized in statement of income
Interest on actuarial liabilities	(12.3)	(15.4)	(13.2)	(10.7)	(5.1)	(4.2)	(2.9)	(2.4)
Current service costs	(0.2)	(0.2)	(6.0)	(4.3)	(2.1)	(1.4)	(0.9)	(0.6)
Past service costs	(2.9)	(0.1)	-	(13.8)	-	(4.3)	-	(2.5)
Gains on early settlement	-	0.1	-	13.8	-	4.3	-	2.5
Cost recognized in statement of income	(15.4)	(15.6)	(19.1)	(15.0)	(7.2)	(5.6)	(3.7)	(3.0)
Estimated costs for the next year
Current service costs	(0.2)	(0.2)	(6.5)	(6.0)	(2.1)	(2.1)	(0.8)	(0.9)
Interest on actuarial liabilities	(12.7)	(12.3)	(12.2)	(13.2)	(4.0)	(5.1)	(2.5)	(2.9)
Past service costs - changes in plan	-	(2.9)	-	-	-	-	-	-
Estimated costs for the next year	(12.9)	(15.4)	(18.8)	(19.2)	(6.1)	(7.2)	(3.3)	(3.8)

⁽¹⁾ Considers the sums of the retirement compensation and life insurance benefits.

g. Actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are summarized below:

	Medical plan		F.G.T.S. penalty		Award for length of service		Others (1)
Actuarial assumptions	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Economic hypothesis
Discount rate	9.76%	11.22%	9.30%	11.64%	9.30%	11.69%	9.30%	11.64%
Inflation rate	4.25%	4.85%	4.25%	4.85%	4.25%	4.85%	4.25%	4.85%
Medical inflation	7.38%	8.00%	N/A	N/A	N/A	N/A	N/A	N/A
Wage growth rate	N/A	N/A	4.25%	5.80%	4.25%	5.80%	4.25%	5.80%
F.G.T.S. balance growth	N/A	N/A	4.00%	4.00%	N/A	N/A	N/A	N/A
	Medical plan		Life insurance		Other benefits
Actuarial assumptions	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Demographic hypothesis
Schedule of mortality	AT-2000	AT-2000	AT-2000	AT-2000	AT-2000	AT-2000
Schedule of disabled	RRB-1944	RRB-1944	RRB-1944	RRB-1944	RRB-1944	RRB-1944
Schedule of disabled mortality	RRB-1983	RRB-1983	RRB-1983	RRB-1983	RRB-1983	RRB-1983
Schedule of turnover - BRF's historical	2,017	2,016	2,017	2,016	2,017	2,016
Demoraphic data
Number of active participants	1,287	1,477	89,596	90,861	86,817	86,864
Number of assisted beneficiary participants	643	638	2,097	2,863	-	-

⁽¹⁾ Includes retirement compensation and life insurance benefits.

h. Forecast and average duration of payments of obligations

The following amounts represent the expected benefit payments for future years (10 years), from the obligation of benefits granted and the average duration of the plan obligations:

Payments	Medical plan	F.G.T.S. penalty	Award for length of service	Others	Total
2018	5.3	52.8	11.0	7.5	76.6
2019	5.8	11.4	5.4	2.5	25.2
2020	6.4	13.9	7.0	3.0	30.2
2021	7.0	15.9	6.5	2.7	32.1
2022	7.6	15.1	6.3	2.5	31.5
2023 to 2027	49.3	79.2	25.7	10.5	164.7
Weighted average duration - in years	15.13	4.47	4.6	5.66	7.00

i. Sensitivity analysis of post-employment plans

The Company made the sensitivity analysis regarding the relevant assumptions of the plans on December 31, 2017, as presented below:

		(+) Variation		(-) Variation
Relevant assumptions	Assumptions utilized	Average (%)	Actuarial liabilities (1)	Average (%)	Actuarial liabilities (1)
Medical plan
Discount rate	9.76%	10.76%	(16.4)	8.76%	20.3
Medical inflation	7.38%	8.38%	20.0	6.38%	(16.4)
Turnover	Historical	+3%	(0.5)	-3%	0.8
F.G.T.S. penalty
Discount rate	9.30%	10.30%	(4.9)	8.30%	5.5
Wage growth rate	4.25%	5.25%	0.8	3.25%	(0.3)
Turnover	Historical	+3%	(16.7)	-3%	22.8

XML

26. PROVISION FOR TAX, CIVIL AND LABOR RISKS

12 Months Ended

Dec. 31, 2017

Provision For Tax Civil And Labor Risks

PROVISION FOR TAX, CIVIL AND LABOR RISKS

26. PROVISION FOR TAX, CIVIL AND LABOR RISKS

The Company and its subsidiaries are involved in certain legal proceedings arising from the normal course of business, which include civil, administrative, tax, social security and labor claims.

The Company classifies the risk of unfavorable decisions in the legal proceedings as “probable”, “possible” or “remote”. The provisions recorded relating to such proceedings is determined by the Company’s management, based on legal advice and reasonably reflect the estimated probable losses.

The Company’s management believes that its provision for tax, civil and labor risks, accounted for according to IAS 37 is sufficient to cover estimated losses related to its legal proceedings, as presented below:

26.1. Contingencies for probable losses

The rollforward of the provisions for tax, civil and labor risks is summarized below:

	Tax		Labor		Civil, commercial and other		Contingent liabilities		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	281.7	240.5	479.7	377.0	122.5	65.7	499.9	522.6	1,383.9	1,205.9
Additions	177.1	107.2	704.0	559.5	164.1	82.6	11.0	-	1,056.1	749.3
Business combination (1)	-	28.7	1.8	17.8	-	4.5	-	-	1.8	51.0
Reversals	(50.8)	(48.0)	(270.8)	(254.3)	(75.1)	(12.2)	(139.5)	(20.9)	(536.2)	(335.4)
Payments	(127.0)	(69.4)	(338.9)	(282.0)	(43.3)	(49.7)	-	-	(509.3)	(401.1)
Price index update	26.6	26.5	128.5	70.0	242.0	32.5	-	-	397.1	129.0
Exchange rate variation	(4.2)	(3.8)	(12.6)	(8.3)	(2.7)	(0.9)	(0.8)	(1.8)	(20.2)	(14.8)
Ending balance	303.4	281.7	691.7	479.7	407.5	122.5	370.6	499.9	1,773.2	1,383.9
Current									536.1	276.2
Non-current									1,237.1	1,107.7

⁽¹⁾ Balance arising from the business combination with Banvit (note 6.1.3).

26.1.1. Tax

The tax contingencies consolidated and classified as probable losses relate to the following main legal proceedings:

ICMS: The Company discusses administratively and judicially judgments of ICMS arising from the ICMS tax credits on mainly related to the acquisition of use and consumption materials, property, plant and equipment, communication service, presumed credit, alleged underpayment of tax rate differential, tax rebate, isolated fine and others, in amount to R$157.0 (R$129.1 as of December 31, 2016).

PIS and COFINS: The Company discusses administratively and judicially the use of certain tax credits arising from the acquisition of raw materials to offset federal taxes, which amount is R$106.5 (R$102.0 as of December 31, 2016).

Other tax contingencies: The Company recorded other provisions for tax claims related to payment of social security contributions (SAT, INCRA, FUNRURAL, Education Salary), contributions due to joint liability for services provided by third parties, through assignment of labor debits included in REFIS with deposit awaiting consolidation and conversion into payment, in addition to debits as tax debts arising from differences of accessory obligations, import taxes, industrialized products tax, payment of compensation fees and others. In view of the amnesty payments the provision amounted in R$51.6 (R$105.4 as of December 31, 2016).

26.1.2. Labor

The Company is defendant in several labor claims individual or with the Public Minister, mainly related to overtime, time spent by the workers for changing uniforms, in-commuting hours, rest breaks, occupational accidents, among others. None of these labor claims is individually significant. The Company recorded a provision based on past history of payments and loss prognosis.

26.1.3. Civil, commercial and others

Civil contingencies are mainly related to claims relating to traffic accidents, moral and property damage, physical casualties, consumer relations, contractual breaches, and other.

26.2. Contingencies classified as a risk of possible loss

The Company is involved in other tax, civil, labor and social security contingencies, for which losses have been assessed as possible by management with the support from legal counsel and therefore no provision was recorded. On December 31, 2017, the total amount of the possible contingencies was R$13,278.4 (R$13,667.9 as of December 31, 2016), of which R$370.6 (R$499.9 as of December 31, 2016) was recorded at fair value as a result of business combinations with Sadia, Avex and Dánica group, according to the requirements of paragraph 23 of IFRS 3.

26.2.1. Tax

Tax contingencies amounted to R$11,469.9 (R$11,953.1 as of December 31, 2016), from which R$370.2 (R$490.3 as of December 31, 2016) was recorded at fair value as a result of business combination with Sadia, Avex and Dánica group, according to the requirements of paragraph 23 of IFRS 3.

The most relevant tax cases are set forth below:

Profits earned abroad: The Company was assessed by the Brazilian Internal Revenue Service for alleged underpayment of income tax and social contribution on profits earned by its subsidiaries located abroad, in a total amount of R$506.3 (R$688.6 as of December 31, 2016). The Company’s legal defense is based on the facts that the subsidiaries located abroad are subject exclusively to the full taxation in the countries in which they are based as a result of the treaties signed to avoid double taxation. One of the cases was tried at the administrative level in 2017 and part of the debit was canceled. The total profits earned abroad are disclosed in note 13.3.

Income Tax and Social Contribution: The Company discusses administratively and judicially several tax assessment notices involving compensation of tax losses, refunds and offset of income and social contribution tax credits against other federal tax debts, including credits arising from the Plano Verão legal dispute. Also, on February 05, 2015 BRF received a tax assessment notice, related to the compensation of tax loss carryforwards and negative calculation basis up to limit of 30% when it has incorporated one of the groups entity during calendar year 2012. The contingent liabilities relative to the subjects discussed totaled R$1,276.4 (R$1,160.2 as of December 31, 2016).

ICMS: The Company is involved in the following disputes associated to the ICMS tax: (i) alleged undue ICMS tax credits generated by tax incentives granted by certain States local rules (“guerra fiscal”) in a total amount of R$1,690.6 (R$2,153.5 as of December 31, 2016); (ii) maintenance of ICMS tax credits on the acquisition of certain products with a reduced tax burden (“cesta básica”) in a total amount of R$789.9 (R$716.2 as of December 31, 2016); (iii) absence of evidence to prove the balances of exports in the amount of R$333.8 (R$356.8 as of December 31, 2016) and part of the assessment was canceled 2017; and (iv) R$1,946.2 (R$1,763.2 as of December 31, 2016) related to other ICMS claims.

Related to the disputes involving “guerra fiscal” (item i above), on December, 18, 2017 was published the Agreement ICMS Nº 190/2017 which regulates a Supplementary Law Nº 160/2017, allowing, after the necessary internal regulations of the States, the remission of the debts assessed/executed. A significant number of cases were reclassified to risk of remote loss arising from favorable decisions not yet definitive in some cases.

In addition to this theme, BRF received on December 14, 2015 a tax assessment notice from the State of Paraná, demanding a partial rebate of ICMS credits in a total amount of R$339.6 (R$332.2 on December 31, 2016) related to “guerra fiscal”, undue credit related to materials consumed in production and undue credits over meats and imports, of which R$20.4 was reclassified to probable loss risk, R$220.5 to remote loss risk and R$98.7 to possible loss risk, because of evolution of process.

Related to the “ICMS cesta básica” (item ii above), in a meeting held on October 16, 2014 the Federal Supreme Court ("STF") was favorable to Tax Authority of State of Rio Grande do Sul, in the judgment of the extraordinary appeal No.635,688 submitted by company Santa Lúcia, understanding as improper the integral maintenance of ICMS tax credits on the reduced tax basis of food products that composes the basic food basket. The decision has a wide reflection effect (applicable to all taxpayers). However, there is still a claim for clarification waiting to be judged, requesting more details related to the timing of such decision (i.e. whether the decision will have retrospective effects), which suggests the need to wait for this final decision to recognize the effects on our financial statements.

IPI: The Company discusses administratively and judicially the non-ratification of compensation of IPI credits resulting from purchases of exempted goods, sales to Manaus Free Zone and purchases of supplies of non-taxpayers with PIS and COFINS being some cases having favorable decisions. Such discussed debits totaled the amount of R$441.7 (R$459.2 as of December 31, 2016).

IPI Premium Credits: The Company was involved in a judicial dispute in a total amount of R$440.1 as of December 31, 2016. On September 15, 2017, the Company opted to join the Tax Amnesty Program related to two processes, being that a residual value of R$31.0.

PIS and COFINS: The Company is involved in administrative proceedings regarding (i) offsetting of credits against other federal tax debts, (ii) disputes about the application (or not) of tax exemptions to some of our products (seasoned meats), iii) levied on the sale of certain types of products (non processed meat), (iv) Decrees 2.445 and 2.449 (“semestralidade”) and others in the amount of R$4,001.2 (R$3,614.9 as of December 31, 2014).

Social Security Taxes: The Company is involved in disputes related to social security taxes allegedly due on payments to service providers as well as joint responsibility with civil construction service providers and others in a total amount of R$262.9 (R$237.2 as of December 31, 2016).

Other Contingencies: The Company is involved in proceedings regarding to a requirement of a fine of 50% of the compensation amount of PIS/COFINS and IRPJ not approved awaiting final decision of the processes, basis of calculation of social contribution on net income, tax on services and others of several natures, fees, property tax, import tax, IOF, as well as an isolate fine arising from alleged errors on Digital Fiscal Bookkeeping (“EFD”) on 2012, totaling R$190.0) (R$29.7 as of December 31, 2016).

Additionally, the Company’s management assessed as relevant disclose information about the processes below:

HUAINE: the Company was included as co-responsible in a debt from Huaine Participações Ltda (former holding of Perdigão). In this lawsuit it is being discussed the inclusion of the Company in the liability from the tax execution in the amount of R$670.9 (R$642.8 as of December 31, 2016). BRF presented a guarantee to the debt, which was duly accepted by the judge and filed a motion to stay execution, which is awaiting judgment. The Company’s legal advisors classified the risk of losses as remote.

26.2.2. Labor

On December 31, 2017 the contingencies assessed as possible loss totaled R$139.3 (R$34.9 as of December 31, 2016).

26.2.3. Civil

The civil contingencies for which losses were assessed as possible totaled R$1,714.9 (R$1,679.8 as of December 31, 2016) and were mainly related to indemnification for material and moral damages.

26.3. Contingent Assets

26.3.1. Exclusion of VAT (ICMS) from PIS and COFINS tax base

On March 20, 2017, the Supreme court ruled that the amount of ICMS (i.e., the state-level value added tax) levied on the sale of products or services should not be included in the taxable base of PIS/COFINS (i.e., the federal social contribution taxes that operate like value added taxes). Considering that BRF S/A has a favorable decision in a lawsuit with this discussion and considering that our legal advisors believe that this last appeal filled by the government has a low probability to impact the lawsuits initiated before the judgment mentioned herein, the Company calculated a contingent asset of R$630.3. The Company has another 07 (seven) lawsuits about the subject filed by other companies that were merged over the past years, but with amounts have not yet been reasonably estimated to date.

XML

27. SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2017

Shareholders Equity

SHAREHOLDERS' EQUITY

27.         SHAREHOLDERS’ EQUITY

27.1.     Capital stock

On December 31, 2017, the capital subscribed and paid by the Company is R$12,553.4, which is composed of 812,473,246 book-entry shares of common stock without par value. The value of the capital stock is net of the public offering expenses of R$92.9.

The Company is authorized to increase the capital stock, irrespective of amendment to the bylaws, up to the limit of 1,000,000,000 common shares, in book-entry form without par value.

27.2.     Breakdown of capital stock by nature

	12.31.17	12.31.16	12.31.15
Common shares	812,473,246	812,473,246	872,473,246
Treasury shares	(1,333,701)	(13,468,001)	(62,501,001)
Outstanding shares	811,139,545	799,005,245	809,972,245

27.3.     Rollforward of outstanding shares

			Quantity of outstanding of shares
	12.31.17	12.31.16	12.31.15
Shares at the beggining of the year	799,005,245	809,972,245	867,284,349
Purchase of treasury shares	-	(11,107,600)	(59,247,400)
Sale of treasury shares	12,134,300	140,600	1,935,296
Shares at the end of the year	811,139,545	799,005,245	809,972,245

27.4.     Shareholders’ remuneration

	12.31.17	12.31.16	12.31.15
Net profit (Loss)	(1,125.6)	(372.4)	3,111.2
Legal reserve (5.00%)	-	-	(155.6)
Dividends calculation base	(1,125.6)	(372.4)	2,955.6
Minimum mandatory dividend (25.00%)	-	-	738.9
Remuneration of shareholders' exceeding the mandatory minimum	-	513.2	251.8
Total remuneration of shareholders' in the year, as interest on shareholders' equity	-	513.2	990.7
Withholding income tax on interest on shareholders' equity	-	(77.0)	(88.9)
Remuneration of shareholders', net of withholding income tax	-	436.2	901.8
Dividends paid per share	-	0.76410	1.19979
Payment of interest on shareholders' equity, paid in 2016 - gross of withholding income tax of R$77.0	-	(513.2)	(425.9)
Paid in the previous period - interest on shareholders' equity of 2015 - gross withholding income tax of R$48.3	-	(473.4)	(376.7)
Dividends paid related to 2015	-	(189.7)	(86.5)
Payments made during in the year	-	(1,176.3)	(889.1)
Total remuneration of shareholders' outstanding	-	-	564.8
Withholding income tax on interest on shareholders' equity	-	-	(48.3)
Remaining amounts outstanding	1.9	2.3	1.9
Interest on shareholders' equity outstanding	1.9	2.3	518.5

27.5.     Loss absorption

		Loss absorption		Reserve balances
	Limit on
	capital %	12.31.17	12.31.16	12.31.17	12.31.16
Actuarial loss FAF	-	(16.8)	(19.1)	-	-
Interest on shareholdes' equity	-	-	513.2	-	-
Legal reserve	20	(438.8)	-	101.4	540.2
Capital increase reserve	20	(30.3)	(989.1)	-	170.8
Reserve for tax incentives	-	(639.7)	122.6	-	639.7
		(1,125.6)	(372.4)	101.4	1,350.7

Legal reserve: It is computed based on five percent (5%) of net profit of each fiscal year as specified in article 193 of Law No. 6,404/76, modified by Law No. 11,638/07, which shall not exceed twenty percent (20%) of the capital stock. On December 31, 2017, this reserve corresponds to 0.81% of capital stock and absorbed R$438.8 related of loss (4.34% as of December 31, 2016).

Reserve for capital increase: it is calculated based on twenty percent (20%) towards the establishment of reserves for capital increase, which shall not exceed twenty percent (20%) of the capital stock. On December 31, 2017, this reserve absorbed (i) R$140.5 related to cancellation of treasury shares and (ii) R$30.3 of loss, with full settlement. On December 31, 2016, this reserve corresponds to 1.37% of capital stock.

Reserve for tax incentives: Constituted as specified in article 195-A of the Law No. 6,404/1976, modified by Law No. 11,638/07, based on the amounts of government grants for investment. On December 31, 2017, this reserve absorbed R$639.7 of the loss, with full settlement.

27.6.     Capital reserve

27.6.1.  Capital reserve

	Capital Reserves
	12.31.17	12.31.16	12.31.15
Result on disposal of shares	(40.7)	(40.7)	(39.0)
Granted shares canceled	(32.4)	(32.4)	-
Valuation of stock exchange	166.2	166.2	174.0
Shares based payment	261.8	236.2	160.3
Goodwill on acquisition of non-controlling entities	(40.5)	(47.4)	(47.4)
Acquisition of non-controlling entities	(199.3)	(240.9)	(240.9)
	115.1	41.0	7.0

27.6.2.  Treasury shares

The Company has 1,333,701 shares in treasury, with an average cost of R$53.60 (fifty-three Brazilian Reais and sixty cents) per share, with a market value corresponding to R$48.8.

On August 10, 2017, the Board of Directors authorized the sale of shares in treasury. On August 16, 2017, the Company sold 12,134,300 shares of its own at a cost of R$650.4, with a sale value of R$509.9.  The main purpose of such disposal is to accelerate the reduction of Company's financial leverage ratios through the entry of the respective funds into its cash. Additionally, the Company contracted with A-rated financial institution Total Return Swap instrument (note 4.2.1), registered in B3, in amounts equivalent to those of the shares Held in treasury sold, with periods of maturity on February 05, 2019, with no possibility of renewal, for which shall receive the variation of the price related to the shares of its issue and pay a percentage of the CDI. The fair value adjustment is recorded in financial expenses.

		Quantity of outstanding of shares
	12.31.17	12.31.16
Shares at the beggining of the year	13,468,001	62,501,001
Cancellation of treasury shares	-	(60,000,000)
Purchase of treasury shares	-	11,107,600
Sale of treasury shares	(12,134,300)	(140,600)
Shares at the end of the year	1,333,701	13,468,001

27.7.     Breakdown of the capital by owner

The shareholding position of shareholders holding more than 5% of the voting capital, management and members of the Board of Directors is presented below (unaudited):

		12.31.17		12.31.16
Shareholders	Quantity	%	Quantity	%
Major shareholders
Fundação Petrobras de Seguridade Social - Petros (1)	92,716,266	11.41	92,761,499	11.42
Caixa de Previd. dos Func. Do Banco do Brasil (1)	86,605,452	10.66	86,628,752	10.66
Tarpon	59,014,607	7.26	95,984,835	11.81
Aberdeen (1)	40,748,226	5.02	36,580,714	4.50
Management
Board of Directors	41,220,470	5.07	37,348,439	4.60
Executives	157,546	0.02	50,252	0.01
Treasury shares	1,333,701	0.16	13,468,001	1.66
Other	490,676,978	60.40	449,650,754	55.34
	812,473,246	100.00	812,473,246	100.00

⁽¹⁾     The pension funds are controlled by employees that participate in the respective entities.

The Company is bound to arbitration in the Market Arbitration Chamber, as established by the arbitration clause in its bylaws.

XML

28. (LOSS)EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2017

(LOSSES) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE

28. (LOSS) EARNINGS PER SHARE

	12.31.17	12.31.16	12.31.15
Basic numerator
Income (loss) for the year attributable to controlling shareholders	(1,125.6)	(372.4)	3,111.2
Basic denominator
Common shares	812,473,246	812,473,246	872,473,246
Weighted average number of outstanding shares - basic (except treasury shares)	803,559,763	801,903,266	842,000,012
Loss per share basic - R$	(1.36748)	(0.45808)	3.71836
Diluted numerator
Income (loss) fot the year attributable to controlling shareholders	(1,125.6)	(372.4)	3,111.2
Diluted denominator
Weighted average number of outstanding shares - basic (except treasury shares)	803,559,763	801,903,266	842,000,012
Number of potential shares (stock options)	-	-	401,809
Weighted average number of outstanding shares - diluted	803,559,763	801,903,266	842,401,821
Loss per share diluted - R$	(1.36748)	(0.45808)	3.71659

Diluted result is calculated considering the numbers of dilutive potential ordinary shares (stock options). However, due to loss reported for the years ended December 31, 2017 and 2016, the numbers of dilutive potential ordinary shares (stock options) has antidilutive effect and therefore was not considered in the calculation of diluted loss per share.

XML

29. GOVERNMENT GRANTS

12 Months Ended

Dec. 31, 2017

Government Grants

GOVERNMENT GRANTS

29. GOVERNMENT GRANTS

The Company has tax benefits related to ICMS for investments granted by the governments of states of Goiás, Pernambuco and Mato Grosso. Such incentives are directly associated to the manufacturing facilities operations, job generation and to the economic and social development in the respective states.

On December 31, 2017, this incentive totaled R$144.4 (R$122.6 in 2016 and R$131.7 in 2015) composing the Reserve for Tax Incentives.

XML

30. RELATED PARTIES

12 Months Ended

Dec. 31, 2017

Government Grants

RELATED PARTIES

30.         RELATED PARTIES

As part of the Company’s operations, rights and obligations arise between related parties, resulting from transactions of purchase and sale of products, loans agreed based on contracts, on market or commutative conditions for similar transactions.

All the relationships between the Company and its subsidiaries were disclosed irrespectively of the existence or not of transactions between these parties.

In the scope of the creation of the wholly-owned subsidiary One Foods (note 1.2), the Company began to carry out transactions of purchase and sale of raw materials and finished products, industrialization process, trademark licensing and sharing of costs with entities of the One Foods, whose conditions were approved by the Board of Directors on March 30, 2017 on a temporary basis and the final contracts with maturity until December 31, 2018, approved on November 30, 2017. The amounts related to such transactions are detailed in the tables below according to their nature.

Specifically, to transactions of the purchase, sale and industrialization, which are commutative between BRF SA and SHB (a wholly-owned subsidiary of One Foods), and, sharing of costs, prices are determined based on cost plus tax impacts, in order to preserve the value chain of the companies.

30.1.     Transactions and balances

All companies presented in note 1.1, which describes the relationship with BRF as well as the nature of the operations of each entity, are controlled by BRF, except for UP! Alimentos, PP-BIO, PR-SAD and SATS BRF which are associates or joint ventures.

The Company also recorded a liability in the amount of R$3.7 (R$6.2 as of December 31, 2016) related to the fair value of the guarantees offered to BNDES concerning a loan made by Instituto Sadia de Sustentabilidade.

Due to the acquisition of biodigesters from Instituto Sadia de Sustentabilidade, as of December 31, 2017 the Company recorded a payable to this entity of R$13.6 included in other liabilities (R$22.2 as of December 31, 2016).

The Company has entered into transactions with companies that are owned by members

of its Board of Directors as demonstrated below:

		Amounts of revenues (expenses)
Companies	Type of transactions	12.31.17	12.31.16	12.31.15
Corall Consultoria Ltda (2)	Corall provided consulting services to BRF	-	(1.8)	-
Edavila Consultoria Empresarial Eireli (1)	Edavila provided consulting services to BRF	(0.5)	(0.3)	-
Hortigil Hortifruti S.A. ("Hortigil") (2)	BRF sells products to Hortigil	-	3.5	15.3
Instituto de Desenvolvimento Gerencial S.A.("Instituto") (2)	Instituto provided consulting services to BRF	(0.9)	(5.0)	(11.3)

⁽¹⁾     Entity on which BRF has no equity interest, but have relationship with the Board of Directors, and provided services to the Company related international marketing and innovation.

⁽²⁾     Entities are no longer related parties, because Board of Director member has no more relationship with them.          

30.2.     Other Related Parties

The Company leased properties owned by Fundação Attílio Francisco Xavier Fontana (“FAF”). For the year ended December 31, 2017, the total amount paid as rent was R$15.8 (R$14.4 as of December 31, 2016). The rent value was set based on market conditions.

30.3.     Granted guarantees

All granted guarantees on behalf of related parties were disclosed in note 19.9.

30.4.     Management remuneration

Key management personnel include board members, statutory directors and the head of internal audit.

The total remuneration and benefits paid to these professionals are demonstrated below:

	12.31.17	12.31.16
Salary and profit sharing	32.8	27.5
Short term benefits (1)	0.4	0.3
Pension plan	0.6	0.8
Post-employment benefits	0.2	0.2
Termination benefits	5.8	5.9
Share based payment	17.0	16.8
	56.8	51.5

⁽¹⁾     Comprises:  Medical assistance, educational expenses and others.

In addition, the executive officers who are also an integral part of the key management personnel received between remuneration and benefits the total amount of R$23.0 for year ended December 31, 2017 (R$16.0 as of December 31, 2016 and R$7.6 as of December 31, 2015).

XML

31. NET SALES

12 Months Ended

Dec. 31, 2017

Net Sales

NET SALES

31. NET SALES

		Restated	Restated
	12.31.17	12.31.16	31.12.15
Gross sales
Brazil	19,350.0	18,621.2	19,011.7
One Foods	7,497.1	6,877.2	6,886.2
International	8,889.6	9,994.0	8,293.6
Southern Cone	2,250.5	2,168.1	2,187.8
Other segments	1,303.5	1,401.8	855.3
	39,290.7	39,062.3	37,234.6
Sales deductions
Brazil	(4,161.4)	(3,813.1)	(3,756.1)
One Foods	(800.3)	(650.6)	(527.9)
International	(392.6)	(357.7)	(378.5)
Southern Cone	(388.9)	(403.2)	(302.1)
Other segments	(78.1)	(104.8)	(73.4)
	(5,821.3)	(5,329.4)	(5,038.0)
Net sales
Brazil	15,188.6	14,808.1	15,255.5
One Foods	6,696.8	6,226.6	6,358.3
International	8,497.0	9,636.3	7,915.1
Southern Cone	1,861.6	1,764.8	1,885.7
Other segments	1,225.4	1,297.1	782.0
	33,469.4	33,732.9	32,196.6

XML

32. RESEARCH AND DEVELOPMENT COSTS

12 Months Ended

Dec. 31, 2017

Research And Development Costs

RESEARCH AND DEVELOPMENT COSTS

32. RESEARCH AND DEVELOPMENT COSTS

Consist of expenditures on internal research and development of new products which are recognized when incurred. The expenditures amounted to R$52.0 for the year ended December 31, 2017 (R$200.2 in 2016 and R$227.3 in 2015).

XML

33. OTHER OPERATING INCOME (EXPENSES), NET

12 Months Ended

Dec. 31, 2017

Other Operating Income Expenses Net

OTHER OPERATING INCOME (EXPENSES), NET

33. OTHER OPERATING INCOME (EXPENSES), NET

	12.31.17	12.31.16	12.31.15
Income
Tax amnesty program ("PERT")	147.7	-	-
Recovery of expenses (1)	120.6	101.3	241.1
Scrap sales	14.5	14.4	12.3
Provision reversal	13.4	56.1	141.7
Gain on step business combination	-	59.6	-
Gain from the disposal of property, plant and equipment	-	38.4	-
Other	69.3	30.5	45.8
	365.4	300.3	566.6
Expenses
Provision for civil, labor and tax risks	(332.9)	(136.9)	(44.8)
Provision for adjustment to realizable value of inventories (effect Weak Flesh Operation) (2)	(283.1)	-	-
Expenses arising from Weak Flesh Operation (2)	(80.3)	-	-
Rewards and short-term incentive	(111.3)	(11.1)	(302.8)
Disabled operations (3)	(81.4)	(106.2)	(86.1)
Business combination costs	(51.9)	-	-
Discontinued operations	(44.7)	(17.4)	-
Other employees benefits	(43.7)	(41.1)	(52.5)
Costs on business disposals	(36.7)	-	-
Stock options plan	(25.6)	(43.5)	(58.9)
Insurance claims costs	(24.3)	(33.1)	(15.1)
Net loss from the disposals of property, plant and equipment	(17.1)	-	(16.4)
Allowance for doubtful accounts	(13.6)	(5.5)	(196.7)
Other	(107.0)	(103.1)	(120.0)
	(1,253.6)	(497.8)	(1,011.3)
	(888.2)	(197.5)	(444.7)

⁽¹⁾ The accumulated balance in 2017 refers mainly to extemporaneous tax credits in the amount of R$91.9.

⁽²⁾ Expenses arising from Weak Flesh Operation (note 1.5).

⁽³⁾ Disable operations includes depreciation charge of R$41.4 (R$29.4 in 2016 and R$18.3 in 2015).

XML

34. FINANCIAL INCOME (EXPENSES), NET

12 Months Ended

Dec. 31, 2017

Financial Income Expenses Net

FINANCIAL INCOME (EXPENSES), NET

34. FINANCIAL INCOME (EXPENSES), NET

	12.31.17	12.31.16	12.31.15
Financial income
Exchange rate variation on other liabilities	361.9	-	-
Interest on assets	305.5	318.1	235.0
Tax amnesty program ("PERT")	302.1	-	-
Interest on cash and cash equivalents	272.8	217.5	164.2
Exchange rate variation on net assets of foreign subsidiaries (1)	213.5	-	-
Interests on financial assets classified as	-	-	-
Held to maturity	61.7	84.8	55.1
Held for trading	19.8	43.6	47.4
Available for sale	8.2	-	16.6
Exchange rate variation on marketable securities	-	56.2	381.3
Exchange rate variation on other assets	-	338.7	1,081.0
Gains from derivative transactions, net	-	-	14.8
Exchange rate variation on loans and financing	-	1,314.8	-
Exchange rate variation on net foreign assets	-	-	1,353.5
Others	-	-	6.4
	1,545.6	2,373.7	3,355.3
Financial expenses
Interest on loans and financing	(1,480.5)	(1,208.9)	(819.2)
Exchange rate variation on other assets	(574.9)	-	-
Interest on liabilities	(500.0)	(279.8)	(165.4)
Adjustment to present value	(302.5)	(353.6)	(240.1)
Exchange rate variation on loans and financing	(211.7)	-	(2,085.8)
Losses on derivative transactions, net	(114.4)	(1,092.2)	-
Exchange rate variation on marketable securities	(94.6)	-	-
Financial expenses on accounts payable	(22.4)	(76.4)	(45.5)
Exchange rate variation on other liabilities	-	(565.9)	(1,080.5)
Exchange rate variation on net assets of foreign subsidiaries (1)	-	(660.5)	-
Premium paid for the repurchase of bonds (Tender Offer)	-	(31.8)	(310.3)
Others	(326.3)	(237.3)	(278.7)
	(3,627.3)	(4,506.4)	(5,025.5)
	(2,081.6)	(2,132.7)	(1,670.2)

⁽¹⁾ Refers to gains and losses on translation of assets and liabilities reported by the Company’s subsidiaries whose functional currency is Real.

XML

35. STATEMENT OF INCOME BY NATURE

12 Months Ended

Dec. 31, 2017

Statement Of Income By Nature

STATEMENT OF INCOME BY NATURE

35 STATEMENT OF INCOME BY NATURE

The Company has chosen to disclose its statement of income by function and thus presents below the details by nature:

	12.31.17	12.31.16	12.31.15
Costs of sales
Raw materials and consumables	18,716.5	18,994.0	15,339.0
Depreciation	1,469.8	1,290.5	1,080.9
Amortization	91.9	6.0	4.5
Salaries and employees benefits	4,004.6	3,716.3	3,394.4
Others	2,282.5	2,199.6	2,288.9
	26,565.3	26,206.4	22,107.7
Sales expenses
Depreciation	65.5	64.7	55.3
Amortization	69.7	14.7	12.9
Salaries and employees benefits	1,291.2	1,200.0	1,081.8
Indirect and direct logistics expenses	2,188.8	2,124.9	2,211.0
Others	1,114.9	1,561.4	1,444.9
	4,730.1	4,965.7	4,805.9
Administrative expenses
Depreciation	41.2	24.5	20.0
Amortization	138.7	173.0	124.7
Salaries and employees benefits	269.1	265.8	301.3
Fees	31.0	28.6	26.2
Others	92.0	85.5	33.9
	572.0	577.4	506.1
Other operating expenses (1)
Depreciation	41.4	29.4	18.3
Others	1,212.2	468.4	993.0
	1,253.6	497.8	1,011.3

The composition of other operating expenses is disclosed in note 33.

XML

36. INSURANCE COVERAGE

12 Months Ended

Dec. 31, 2017

Insurance Coverage

INSURANCE COVERAGE

36. INSURANCE COVERAGE

The Company´s insurance policy considers the concentration and relevance of the risks identified in its risk management program. Thus, the contracted insurance coverage is adequate to the entity´s size, activities and for amounts considered reasonable for Management to cover any damages. The Company also follows the orientations provided by its advisors.

		12.31.17
Assets covered	Coverage	Amount of coverage
Operational risks	Coverage against damage to buildings, facilities, inventory, machinery and equipment, loss of profits	893.2
Carriage of goods	Coverage of goods in transit and in inventories	932.0
Civil responsability	Third party complaints	264.6

Each legal entity has its own coverages, which are not complementary.

XML

37. NEW ACCOUNTING PRONOUNCEMENTS NOT ADOPTED

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements Not Adopted

NEW ACCOUNTING PRONOUNCEMENTS NOT ADOPTED

37. NEW ACCOUNTING PRONOUNCEMENTS NOT ADOPTED

IFRS 15 – Revenue from contracts with customers

On May 2014, IASB issued IFRS 15 that establishes a 5-step model to determine the revenue to be recognized in contracts with customers. In accordance with this standard, revenues are recognized based on an amount that reflects the consideration that an entity expects to be entitled for delivering goods or providing services to a customer. The guidelines of IFRS 15 consider a more structured approach to measure and recognize revenue.

This standard is applicable to all entities and will replace all current requirements related to revenue recognition. The adoption of IFRS 15 is mandatory to periods beginning on January 1, 2018 onwards, early adoption is not permitted in Brazil.

The Company assessed the content of this standard and in this assessment, recognition and measurement of revenue, rebates, discounts and returns, as well as policies, processes and individual relevant agreements, have not been substantially changed by the new standard.

The Company will adopt the new standard using the modified cumulative retrospective transition method.

IFRS 9 – Financial instruments

The Company is required to adopt IFRS 9 in replacement of IAS 39 Financial Instruments: Recognition and measurement from January 01, 2018. The Company has assessed the estimated impact on its consolidated financial statements based on analysis undertaken to date and the actual impacts may change because the new accounting policies are subject to change until the Company presents its first financial statements that include the date of initial application.

The Company has assessed the estimated impact on its consolidated financial statements and expects that the effects are immaterial.

The most relevant changes for the Company related to the adoption of IFRS 9 in comparison with IAS 39 and its impacts on its financial statements are as follows:

Classification of financial assets

IFRS 9 contains a new classification and measurement approach for financial assets which contains three principal classification categories: measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit and loss (FVTPL). The standard eliminates the IAS 39 categories of held to maturity, loans and receivables and available for sale.

This change modifies the disclosures, which must reflect the new categories. On adoption of the standard there are no expected impacts in measurement of financial instruments registered in the Company the requires adjustments.

Hedge accounting

The Company has chosen to apply the new hedge accounting requirements of IFRS 9. The standard requires that hedge accounting relationships are aligned with the Company’s risk management objectives and strategy, the application of a more qualitative and forward-looking approach to assessing hedge effectiveness and prohibits voluntary discontinuation of hedge accounting.

The company usually designates as a hedge instrument only the changes in fair value of the spot element of a forward exchange contract and only the changes in intrinsic value of the options on cash flow hedge accounting relationships. Under IAS 39, the change in fair value of the forward element of the forward exchange contracts and of the time value of the options are recognized immediately in profit or loss. On adoption of IFRS 9, the Company has elected to separately account for the time value of purchased options, the forward element of forward contracts and foreign currency basis spreads as cost of hedging. Consequently, these changes will be recognized in other comprehensive income and accumulated in a cost of hedging reserve as a separate component within equity and accounted for subsequently as gains and losses accumulated in the cash flow hedge reserve.

Impairment of financial assets

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with a forward-looking ‘expected credit loss’ model. This will require considerable judgement about how changes in economic factors affect expected credit losses, which will be determined on a probability-weighted basis.

The new impairment model will apply to financial assets measured at amortized cost or FVOCI, except for investments in equity instruments and to contract assets.

For financial investments and cash and equivalents, the Company does not expect any relevant impact on credit losses, due to the elevated ratings of its counterparties.

For trade receivables and notes receivables, the Company has elected the practical expedient of the aging-based provision matrix in paragraph B5.5.35 of IFRS 9, with the appropriate groupings of the receivables.

Disclosures

IFRS 9 requires extensive new disclosures, in particular about hedge accounting, credit risk and expected credit losses. The Company’s is assessing the gaps against current processes and required information and is implementing changes on its controls to comply with the new standard.

Transition

Changes in accounting policies resulting from the adoption of IFRS 9 will be applied retrospectively, except as described below:

· The Company will take advantage of the exemption allowing it not to restate comparative information for prior periods with respect to classification and measurement (including impairment) changes. Differences in carrying amounts of financial assets and financial liabilities resulting from the adoption of IFRS 9 will be recognized in retained earnings and reserves as at January 01, 2018.

· The new hedge accounting requirements should be applied prospectively.

IFRS 16 - Leases

On January 2016, the IASB issued the final version of IFRS 16 – Leases, which supersedes IAS 17 – Leases, which will be applicable to periods beginning on January 01, 2019. The adoption of this standard introduces a single model for the accounting of leases, for the lessee, for which should be recognized a right of use asset and an obligation to make payments related to the lease. Assets with a term of less than 12 months and of low value, are exempt from this treatment.

The Company is assessing the content and possible impacts of adoption this pronouncement in its consolidated financial statements, but the process is ongoing. The Company understands that the effective impact will depend on economic conditions at the time of adoption, for example (i) rate of indebtedness of the Company (ii) agreements portfolio in force and (iii) possible agreement renewals.

XML

38. SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2017

Subsequent Events

SUBSEQUENT EVENTS

38. SUBSEQUENT EVENTS

38.1.     Trapaça Operation

On March 5, 2018, the Company learned of a decision issued by a federal judge of the 1^st Federal Court of Ponta Grossa/PR, authorizing the search and seizure of information and documents from us and certain current and former employees, and the temporary detention of certain individuals.  In what media reports have identified as “Operação Trapaça,” in total eleven current or former employees of BRF were temporarily detained for questioning.  All such current and former employees have been released.  A number of other BRF employees and former employees were identified for questioning.

Based on the judge’s decision authorizing the temporary detention and the search and seizure, the main allegations at this stage involve alleged misconduct relating to quality violations, improper use of feed components, and falsification of tests at certain BRF manufacturing plants and accredited labs. 

The Company is cooperating with authorities and initiated an internal investigation with respect to the allegations. BRF’s Statutory Audit Committee has initiated an investigation with respect to the alleged misconduct involving BRF employees in the Trapaça Operation and it involved outside counsel. The investigation is still at its early stages and at this point the results obtained have not indicated necessary adjustments in BRF’s financial statements.

As a result of the Trapaça Operation, on March 5, 2018, BRF received notice from Ministry of Agriculture, Livestock and Food Supply (“MAPA”) that it immediately suspended exports from its Rio Verde/GO, Carambeí/PR and Mineiros/GO plants to 12 (twelve) countries that require specific sanitary requirements for the control of the bacteria group Salmonella spp and Salmonella pullorum. On March 15, 2018, MAPA suspended exports from 9 (nine) other BRF plants to the European Union, but revoked the temporary suspension on April 18, 2018. Although to date, the Company have not received any formal notice from Brazilian or European authorities, media reports indicate that the European Union is considering suspending imports of poultry from certain production facilities in Brazil, including supposedly due to sanitary concerns. If the European Union, were to implement any such ban of imports from BRF’s production facilities, the Company may not be able to sell its products from such embargoed production plants in the European Union, and depending on the extension of such suspension, it’s results of operations may be adversely affected if BRF are not capable of directing any exceeding production capacity resulting from suspension to other markets at similar prices.

The outcome of this operation may result in penalties, fines and sanctions from governmental authorities or other forms of liabilities. Also, as a result of this operation, the Company may present losses related to contingencies, adjustments to net realizable value of inventories and recoverability of certain assets, all of which are not possible to be estimated at this moment and therefore, no provision has been recorded.

38.2.        U.S. Class Action

On March 12, 2018, a purported shareholder class action lawsuit was filed in U.S. Federal District Court in the Southern District of New York alleging, among other things, that BRF and certain of its officers and/or directors engaged in securities fraud or other unlawful business practices related to the regulatory issues. Because this lawsuit is in its early stage, the possible loss or range of losses, if any, arising from this litigation cannot be estimated. While BRF believes that the claims are without merit and will continue to defend against the litigation vigorously, in the event that this litigation is decided against the Company, or BRF enter into an agreement to settle there can be no assurance that an unfavorable outcome would not have a material impact.

38.3.        Extraordinary General Shareholders’ Meeting for probable change of Board of Directors

On March 5, 2018, the Company was called for an Extraordinary General Shareholders’ Meeting to be held jointly with the Ordinary General Shareholders’ Meeting on April 26, 2018 at the request of two of our significant shareholders, Caixa de Previdência dos Funcionários do Banco do Brasil (“PREVI”) and Fundação Petrobras de Seguridade Social (“PETROS”), which jointly own more than 20% of BRF’s capital stock. In their request, PREVI and PETROS called for (i) removal of all current members of the Board of Directors; (ii) approval of the number of 10 members to compose the Board of Directors; (iii) election of new members to fill the positions on the Board of Directors; and (iv) election of the Chairman and Vice-Chairman of the Board of Directors.

On April 6, 2018, at an Extraordinary Meeting of the Company’s current Board of Directors, it submitted to shareholders an alternative composition to the Company’s Board vis-à-vis the one proposed by PREVI and PETROS. Later on, five out of the ten candidates appointed by the Board of Directors to comprise this alternative Board composition presented to the Company with a request for their names to be withdrawn from such composition.

On April 12, 2018, the Company received from Aberdeen Asset Management PLC, for and on behalf of the investment funds and portfolios under management of companies belonging to its economic group, which, according to its declaration, jointly own more that 5% of BRF´s capital stock, a request for the adoption of the cumulative voting system for the election of the members of the Board of Directors to be held at the 2018 Shareholders’ Meeting of BRF.

On April 13, 2018, Mr. Luiz Fernando Furlan, BRF’s shareholder (and Board member), proposed Ms. Luiza Helena Trajano Inácio Rodrigues and Mr. Vicente Falconi Campos as candidates for the composition of the Board of Directors.

On April 17, 2018, the shareholders Walter Fontana Filho and Vicente Falconi Campos proposed as Chairman and Vice-Chairman of the Board of Directors, once duly elected, Mr. Luiz Fernando Furlan and Ms. Luiza Helena Trajano Inácio Rodrigues, respectively.

On April 18, 2018, Mr. Abilio dos Santos Diniz, Tarpon Investimentos S.A. and PETROS, proposed Mr. Pedro Pullen Parente to the position of member of BRF’s Board of Directors and as its Chairman.

On April 19, 2018, a voting agreement was executed by and between PREVI, PETROS, investment funds represented by their manager Tarpon Gestora de Recursos S.A. and Mr. Abilio dos Santos Diniz, as holders, directly and indirectly, of 32.80% of the shares issued by BRF, on a number of issues regarding the matters to be discussed at 2018 Shareholders’ Meeting of BRF (including the election of members of our Board of Directors). Also on April 19, 2018, BRF’s Board of Directors decided, in connection with the election of its members for a new term, for the appointment of the following names to compose the slate of BRF’s Board of Directors, in case of withdrawal of the request for cumulative voting presented by Aberdeen Asset Management PLC: Mr. Augusto Marques da Cruz Filho, Mr. Dan Ioschpe, Ms. Flávia Buarque de Almeida, Mr. Francisco Petros Oliveira Lima Papathanasiadis, Mr. José Luiz Osório, Mr. Luiz Fernando Furlan, Mr. Pedro Pullen Parente, Mr. Roberto Antônio Mendes, Mr. Roberto Rodrigues and Mr. Walter Malieni Jr. The appointment of Messrs. Pedro Pullen Parente and Augusto Marques da Cruz Filho to run for Chairman and Vice-Chairman, respectively, was also approved and the composition proposed by BRF’s Board of Directors matched with the composition of BRF’s Board of Directors proposed by significant shareholders under the voting agreement discussed above (assuming that the request for cumulative voting presented would be withdrawn). Ms. Luiza Helena Trajano Inácio Rodrigues withdrawn her name from the list of candidates to be elected in the 2018 Shareholders’ Meeting.

On April 25, 2018, Aberdeen Asset Management PLC sent a letter withdrawing its request for the adoption of the cumulative voting system at BRF’s 2018 Shareholders’ Meeting, however the Brazilian Securities and Exchange Commission (“Comissão de Valores Mobiliários”), or the CVM, delivered to the Company a letter immediately prior to the beginning of BRF’s 2018 Shareholders’ Meeting demanding the adoption of the cumulative voting system in BRF’s 2018 Shareholders’ Meeting as other shareholders had previously delivered to the Company their votes based on such system. As a result, the Company adopted the cumulative voting system in its 2018 Shareholders’ Meeting.

As a result of the adoption of the cumulative voting system, the voting slate system originally proposed by both (1) PREVI and PETROS and (2) the Board were no longer be adopted, and the election of the Company’s Board members at 2018 Shareholders’ Meeting of BRF were candidate-based (rather than slate-based). All candidates proposed by BRF’s Board of Directors and significant shareholders as discussed above to become members of BRF’s Board were elected in its 2018 Shareholders’ Meeting.

Only 4 out of the 10 members of our Board of Directors elected in 2018 Shareholders’ Meeting were previously members of BRF’s Board of Directors.  Substantial changes in the composition of the Board of Directors may result in significant changes to business strategy and give cause for changes at BRF’s senior management.

XML

39. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2017

Approval Of Consolidated Financial Statements

APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

39. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Board of Directors on April 27, 2018

XML

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies Policies

Consolidation

3.1. Consolidation: includes the BRF’s individual financial statements and the financial statements from subsidiaries where BRF has direct or indirect control. All transactions and balances between BRF and its subsidiaries have been eliminated upon consolidation, as well as the unrealized profits or losses arising from transactions between the Company and its subsidiaries. Non-controlling interest is presented separately.

Functional currency

3.2. Functional currency and foreign currency transactions: the financial statements of each subsidiary included in consolidation are prepared using the currency of the main economic environment where it operates.

The financial statements of foreign subsidiaries are translated into Brazilian Reais in accordance with their functional currency using the following criteria:

Foreign subsidiaries with functional currency – Argentine Peso, Bath, Chilean Peso, Dirham, Euro, Forint Hungary, Hong Kong Dollar, Kwait Dinar, Oman Riyal, Pound Sterling, Rande Africa, Renminbi Yuan China, Ringgit Malaysia, Riyal Saudi Arabia, Riyal Qatar, Romanian Leu, Ruble Russia, Singapore Dollar, Turkish Lira, Uruguayan Peso, U.S. Dollar, Vietnamere Dong, Won South Korea and Yen.

· Assets and liabilities are translated at the exchange rate in effect at year-end;

· Statement of income accounts are translated based on the monthly average rate; and

· The cumulative effects of gains or losses upon translation are recognized as Accumulated Foreign Currency Translation Adjustments component of other comprehensive income.

Foreign subsidiaries with functional currency – Brazilian Reais

· Non-monetary assets and liabilities are translated at the historical rate of the transaction;

· Monetary assets and liabilities are translated at the exchange rate in effect at year-end;

· Statement of income accounts are translated based on monthly average rate;

· The cumulative effects of gains or losses upon translation of monetary assets and liabilities are recognized in the statement of income; and 

· The cumulative effects of gains or losses upon translation of non-monetary assets and liabilities are recognized in the other comprehensive income.

As a result of the Company’s organizational change, as disclosed in note 1.3 Corporate reorganization One Foods Holdings Ltd., the functional currency of some of the Company’s subsidiaries was changed for the year ended December 31, 2017, and treated in a prospective manner, as explained in IAS 21.

Goodwill arising from business combination with entities in foreign market is expressed in the functional currency of that entity and converted by the closing exchange rate for the reporting currency of the acquirer, with the effects recognized in other comprehensive income.

The accounting policies have been consistently applied by all subsidiaries included in consolidation.

Investments

3.3. Investments: investments in associates and joint ventures are initially recognized at cost and adjusted thereafter for the equity method. In the investments in associates, the Company must have significant influence, which is the power to participate in the financial and operating policy decisions of the investee, without having its control or joint control of those policies. In investments in joint ventures there is a contractually agreed sharing of control through an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

Business combinations

3.4. Business combinations: are accounted for using the purchase method. The cost of an acquisition is the sum of the consideration paid, evaluated based on the fair value at acquisition date, and the amount of any non-controlling interests in the acquiree. For each business combination, the Company recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. Costs directly attributable to the acquisition are accounted for as an expense when incurred (assets acquired and liabilities assumed, net).

When the investment has simply been moved from one part of the group to another, the acquirer in a common control transaction use book value (carry-over basis) accounting.

When acquiring a business, management evaluate the assets acquired and the liabilities assumed in order to classify and allocate them assessing the terms of the agreement, economic circumstances and other conditions at the acquisition date.

Goodwill is initially measured as the excess of the consideration paid over the fair value of the net assets acquired.

After initial recognition, goodwill is measured at cost, net of any accumulated impairment losses. For purposes of impairment testing, the goodwill recognized in a business combination, as from the acquisition date, is allocated to each of the Company’s cash generating units.

Segment information

3.5. Segment information: an operating segment is a component of the Company that carries out business activities from which it can obtain revenues and incur expenses. The operating segments reflect how the Company’s management reviews financial information to make decisions. The Company’s management has identified reportable segments, which meet the quantitative and qualitative disclosure requirements. The segments identified for disclosure represent mainly sales channels. The information according to the characteristics of the products is also presented, based on their nature, as follows: poultry, pork and others, processed and other sales.

Cash and cash equivalents

3.6. Cash and cash equivalents: include cash on hand, bank deposits and highly liquid investments in fixed-income funds and/or securities with maturities, upon acquisition, of 90 days or less, which are readily convertible into known amounts of cash and subject to insignificant risk of change in value. The investments classified in this group, due to their nature, are measured at fair value through the profit and loss.

Financial instruments

3.7. Financial instruments: financial assets and liabilities are recorded when the Company becomes party to the contractual provisions of the instruments and classified into the following categories: marketable securities, loans, receivables, derivatives and other.

3.7.1. Marketable securities: are financial assets that comprise public and private fixed-income securities, classified and recorded based on the purpose for which they were acquired, in accordance with the following categories:

· Trading securities: acquired for sale or repurchase in the short term, recorded at fair value with variations directly recorded in the statement of income for the year within interest income or expense;

· Held to maturity: when the Company has the intention and ability to hold them up to maturity, investments are recorded at amortized cost, plus interest, monetary and exchange rate changes, when applicable, and recognized in the statement of income when incurred, within interest income or expense; and

· Available for sale: this category is for the remaining securities that are not classified in any of the categories above, which are measured at fair value, with changes to fair value recorded in other comprehensive income while the asset is not realized, net of taxes. Interest and monetary and exchange variation, when applicable, are recognized in the statement of income when incurred within interest income or expense.

3.7.2. Derivative financial instruments measured at fair value: are those actively traded on organized markets and OTC derivatives. Fair value is determined based on the amounts quoted on an active market at the balance sheet date or through models that utilize observable market inputs. These financial instruments are initially recognized at fair value and classified as derivative financial instruments, and the variation of the fair value is recognized in the statement of income.

3.7.3. Hedge accounting transactions: the Company utilizes derivative and non-derivative financial instruments, to hedge the exposure to exchange rate and interest variations or to modify the characteristics of financial assets and liabilities and highly probable transactions, which are: (i) highly correlated to changes in the fair value of the item being hedged, both at inception and throughout the term of the contract (effectiveness between 80% and 125%); (ii) supported by documents that identify the transaction, the hedged risk, the risk management process and the methodology used to assess effectiveness; and (iii) considered effective in the mitigation of the risk associated with the hedged exposure. These transactions are accounted for in accordance with IAS 39.

Hedges that meet the criteria of hedge accounting are recorded as cash flow hedge, fair value hedge or hedge of foreign net investment, and the latter is not practiced by the Company.

In a cash flow hedge, the effective portion of the gain or loss on the hedging instrument is recognized as other comprehensive income, while the ineffective portion of the hedge is recognized immediately as financial income or expense.

The amounts recorded as other comprehensive income are immediately transferred to the statement of income when the hedged transaction affects the statement of income.

If the occurrence of the forecasted transaction or firm commitment is no longer expected, the amounts previously recognized in other comprehensive income are transferred to the statement of income. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its classification as a hedge is revoked, the gains or losses previously recognized remain recorded in other comprehensive income until the forecasted transaction or firm commitment affect the statement of income.

In a fair value hedge, the effective portion of the gain or loss on the hedging instrument is recognized into income statement at the same time as the hedge object’s fair value variation. When the hedge object is a firm commitment, the amount initially recorded of the asset or liability is adjusted with the gain or loss.

3.7.4. Loans and receivables: these are financial assets with fixed or determinable payments. Such assets are initially recognized at fair value plus any attributable transaction costs. After initial recognition, loans and receivables are measured at amortized cost under the effective interest rate method, less any impairment losses.

3.7.5. Financial liabilities non-derivatives: the liabilities are initially recognized at fair value deducted any transaction costs directly attributable. After initial recognition, these financial liabilities are measured at amortized cost using effective interest method.

Adjustment to present value

3.8. Adjustment to present value: the Company measures the adjustment to present value of outstanding balances of non-current trade accounts receivable, trade payables and other non-current liabilities, being recorded in accounts reducing their lines on the other hand financial result. The Company adopts the weighted average of the cost of funding to determine the adjustment to present value to those assets and liabilities, which corresponds to annual rate of 12.70% (14.30% p.a. on December 31, 2016).

Trade accounts receivables and other receivables

3.9. Trade accounts receivables and other receivables: are recorded at the invoiced amount and adjusted to present value, when applicable, net of allowance for doubtful accounts.

The Company adopts procedures and analysis to establish credit limits and substantially does not require collateral from customers. In the event of default, collection attempts are made, which include direct contact with customers and collection through third parties. Should these efforts prove unsuccessful, court measures are considered and the notes are reclassified to non-current assets at the same time an allowance is recognized. The notes are written-off from the allowance when management considers that they are not recoverable after taking all appropriate measures to collect them.

Inventories

3.10. Inventories: are evaluated at average acquisition or formation cost, not exceeding their net realizable value. The cost of finished products includes raw materials, labor, cost of production, transport and storage, which are related to all process needed to make the products ready for sale. Provisions for obsolescence, adjustments to net realizable value, impaired items and slow-moving inventories are recorded when necessary. Usual production losses are recorded and are an integral part of the production cost of the respective month, whereas abnormal losses, if any, are recorded as other operating expense.

Biological assets

3.11. Biological assets: The consumables and production biological assets (live animals) and the forest are measured at their fair value, being applied the cost approach technique to live animals and market approach to the forest. In the determination of the live animal’s fair value, all the inherent losses to the production process were considered.

Assets held for sale and discontinued operations

3.12. Assets held for sale and discontinued operations: Such assets are measured at carrying amount or fair value less costs to sell, whichever is lower, and are not depreciated or amortized. Such items are only classified under this heading when the sale is highly probable and they are available for immediate sale under their current conditions.

The income statement and cash flows from discontinued operations are presented separately from those of continuing operations of the Company.

Property, plant and equipment

3.13. Property, plant and equipment: stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, when applicable. The borrowing costs are capitalized as a component of construction in progress, pursuant to IAS 23, considering the weighted average interest rate of the Company’s debt at the capitalization date.

Depreciation is recognized based on the estimated economic useful life of each asset on a straight-line basis. The estimated useful life, residual values and depreciation methods are annually reviewed and the effects of any changes in estimates are accounted for prospectively. Land is not depreciated.

The Company annually performs an analysis of impairment indicators of property, plant and equipment. The recoverability of these assets was tested for impairment in 2017, and no adjustments were identified. The realization of the test involved the adoption of assumptions and judgments, as disclosed in note 18. In accordance with IAS 36, an impairment for loss for property, plant and equipment, is only recognized if the related cash-generating unit is devalued. Such condition is also applied if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of asset or cash-generating unit is the greater of its value in use and its fair value less cost to sell.

Gains and losses on disposals of property, plant and equipment items are calculated by comparing the proceeds of the disposals with their net book values and recognized in the statement of income at the disposal date.

Intangible assets

3.14. Intangible assets: Intangible assets acquired are measured at cost at the time they are initially recognized. The cost of intangible assets acquired in a business combination corresponds to the fair value at the acquisition date. After initial recognition, intangible assets are presented at cost less accumulated amortization and impairment losses, when applicable. Internally-generated intangible assets, excluding development costs, are not capitalized but recognized in the statement of income as incurred.

The useful life of intangible assets is assessed as finite or indefinite.

Intangible assets with a finite life are amortized over the economic useful life and reviewed for impairment whenever there is an indication that their carrying values may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at least at the end of each fiscal year. The amortization of intangible assets with a finite useful life is recognized in the statement of income as an expense consistently with the economic useful life of the intangible asset.

Intangible assets with an indefinite useful life are not amortized, but are tested annually for impairment on an individual basis or at the cash generating unit level. The Company records goodwill and trademarks as intangibles assets with indefinite useful life.

Goodwill recoverability was tested for fiscal year 2017 and no impairment loss was identified. Such test involved the adoption of assumptions and judgments, disclosed in note 18.

Income taxes

3.15. Income taxes: in Brazil, are comprised of corporate income tax (“IRPJ”) and social contribution tax (“CSLL”), which are calculated monthly on taxable income, at the rate of 15% plus 10% surtax for IRPJ, and of 9% for CSLL, considering the offset of tax loss carryforwards, up to the limit of 30% of annual taxable income.

The income from foreign subsidiaries is subject to taxation pursuant to the local tax rates and legislation. In Brazil, these incomes are taxed according to the Law 12.973/14, respecting the tax treaty signed by each country with Brazil in order to avoid double taxation.

Deferred taxes are recorded on IRPJ and CSLL tax losses, and on temporary differences between the tax basis and the carrying amount on assets and liabilities and classified as non-current assets, as required by IAS 01. When the Company’s analysis indicates that the realization of these credits is not probable, the deferred taxes are derecognized.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity. In the consolidated financial statements, the Company’s tax assets and liabilities can be offset against the tax assets and liabilities of the subsidiaries if, and only if, these entities have a legally enforceable right to make or receive a single net payment and intend to make or receive this net payment, or recover the assets and settle the liabilities simultaneously. Therefore, for presentation purposes, the balances of tax assets and tax liabilities are being disclosed separately.

Deferred tax assets and liabilities must be measured by enacted or substantially enacted rates that are expected to be applicable for the period when the assets are realized and liabilities settled.

Accounts payable and trade accounts payable

3.16. Accounts payable and trade accounts payable: are initially recognized at fair value plus any accrued charges, monetary and exchange variations incurred through the balance sheet date.

Provision for tax, civil and labor risks and contingent liabilities

3.17. Provision for tax, civil and labor risks and contingent liabilities: are established when the Company has a present obligation, formalized or not, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and its amount can be reliably estimated.

The Company is part of various lawsuits, including, tax, labor and civil claims, mainly in Brazil. The assessment of the likelihood of an unfavorable outcome in these lawsuits includes the analysis of the available evidence, the hierarchy of the laws, available prior court decisions, as well as the most recent court decisions and their importance to the Brazilian legal system, as well as the opinion of external legal counsel. The provisions are reviewed and adjusted to reflect changes in the circumstances, such as the applicable statute of limitation, conclusions of tax inspections or additional exposures identified based on new claims or court decisions.

A contingent liabilities of business combinations are recognized if they arise from a present obligation that arose from past events and if their fair value can be measured reliably and subsequently are measured at the higher of:

· the amount that would be recognized in accordance with the accounting policy for the provisions above that comply with IAS 37; or

· the amount initially recognized less, if appropriate, cumulative amortization recognized in accordance with IAS 18.

As a result of the business combinations with Sadia, Avex and Dánica group the Company recognized contingent liabilities related to tax, civil and labor claims.

Leases

3.18. Leases: lease transactions in which the risks and rewards of ownership are substantially transferred to the Company are classified as finance leases. When there is no significant transfer of the risks and rewards of ownership, lease transactions are classified as operating leases.

Finance lease agreements are recognized in property, plant and equipment and in liabilities at the lower of the present value of the minimum future payments of the agreement and the fair value of the asset, including, when applicable, the initial direct costs incurred in the transaction. The amounts recorded in property, plant and equipment are depreciated and the underlying interest is recorded in the statement of income in accordance with the terms of the lease agreement.

Operating lease agreements are recognized as straight-line expenses throughout the lease terms.

Share based payments

3.19. Share based payments: the Company provides share based payments restricted stock for its executives, which are settled with Company shares. The Company adopts the provisions of IFRS 2, recognizing as an expense, on a straight-line basis, the fair value of the options granted, over the length of service required by the stock options plan or share, with a corresponding entry to equity. The accumulated expense recognized reflects the acquired vesting period and the Company's best estimate of the number of shares to be acquired.

The expense or income arising from the movement during the year is recognized in the statement of income under other operating expense or income. Expense is reversed/trued up in case of failure to satisfy a service vesting condition (forfeiture).

The effect of outstanding options is reflected as additional dilution in the calculation of diluted earnings per share.

Pension and other post-employment plans

3.20. Pension and other post-employment plans: the Company sponsors four supplementary defined benefit and defined contribution plans, as well as other post-employment benefits, for which, an actuarial appraisal is annually prepared by an independent actuary and is reviewed by management. The cost of defined benefits is established separately for each plan using the projected unit credit method.

The measurements comprise the actuarial gains and losses, the effect of a limit on contributions and returns on plan assets, are recognized in the balance sheet with a contra entry in other comprehensive income when incurred. These measurements are not reclassified to statement of income in subsequent periods.

The Company recognizes the net defined benefit asset, when:

·       controls a resource and has the ability to use the surplus to generate future benefits;

·       the control is a result of past events; and

·       the future economic benefits are available to the Company in the form of a reduction in future contributions or a cash refund, either directly to the Company or indirectly to another deficitary plan. The asset ceiling is the present value of those future benefits.

The past service cost is recognized in the statement of income at the earliest of the following dates:

· when the plan amendment or curtailment occurs, or

· when the Company recognizes related restructuring costs.

The past service cost and net interest on net defined benefit liability or asset are recognized in the statement of income within other operating expense or income.

Earnings (Losses) per share

3.21. Earnings (Losses) per share: basic earnings (losses) per share are calculated by dividing the net profit attributable to the holders of ordinary shares of the Company by (losses) the weighted average number of ordinary shares during the year. Diluted earnings per share are calculated by dividing the net profit (loss) attributable to the holders of ordinary shares of the Company by the weighted average number of ordinary shares during the year, plus the weighted average number of ordinary shares that would be issued when converting all dilutive potential ordinary shares into ordinary shares.

Revenue recognition

3.22. Revenue recognition: revenues comprise the fair value of consideration received or receivable from the sale of products, net of taxes, returns, rebates and discounts.

Revenues are recognized when the sales value is reliably measurable and when the Company no longer has control over the goods sold, or otherwise any involvement related to the ownership, the costs incurred or to be incurred due to transaction can be reliably measured, it is probable that economic benefits will be received by the Company and the risks and benefits were fully transferred to the purchaser.

Employee and management profit sharing

3.23. Employee and management profit sharing: employees are entitled to profit sharing based on certain targets agreed upon on an annual basis, whereas directors are entitled to profit sharing based on the provisions of the bylaws, proposed by the Board of Directors and approved by the shareholders. The profit sharing amount is recognized in the statement of income for the period in which the targets are attained.

Financial income and expenses

3.24. Financial income and expenses: include interest earnings on amounts invested (including available for sale financial assets held to maturity, held for trading and cash and cash equivalents), dividend income (except for dividends received from equity investees), gains on disposal of available for sale financial assets, exchange rate  variation on assets (situations in which there is a devaluation of the national currency against the currency of the asset in question), changes in fair value of financial assets measured at fair value through profit or loss, adjustment to present value (trade accounts receivable, notes receivable, short-term debt and trade accounts payable), gains and losses on hedging instruments that are recognized in income, interest on loans and financing and monetary variation on contingencies and tax credits. Interest income is recognized in earnings through the effective interest method.

Grants and government assistance

3.25. Grants and government assistance: government subsidies are recognized at fair value when there is reasonable assurance that the conditions established are met and related benefits will be received. The amounts recorded in the statement of income when excluded from the income tax and social contribution calculation basis are transferred in shareholders’ equity, as a reserve of tax incentives, unless there are accumulated losses.

Dividends and interest on shareholders' equity

3.26. Dividends and interest on shareholders’ equity: the proposal for payment of dividends and interest on shareholders’ equity made by the Company’s Management, which is within the portion equivalent to the mandatory minimum dividend, is recorded in current liabilities, as a legal obligation provided for in the bylaws; on the other hand, the dividends that exceed the mandatory minimum dividend, declared by management before the end of the accounting period covered by the consolidated financial statements, not yet approved by the shareholders, is recorded as additional dividend proposed in shareholders’ equity.

For financial statement presentation purposes, interest on shareholders’ equity is stated as dividends directly in shareholders’ equity.

Transactions and balances in foreign currency

3.27. Transactions and balances in foreign currency: the transactions in foreign currency are translated into the functional currency of the company using the exchange rates at the transaction date. Balances of monetary items denominated in foreign currency are translated using the exchange rates in effect at the balance sheet date or settlement, being the gains or losses on exchange rate variation recognized as financial result.

The exchange rates in Brazilian Reais effective at the balance sheet dates were as follows:

Exchange rate at the balance sheet date	12.31.17	12.31.16
Bath (THB)	0.1015	0.0911
Kwait Dinar (KWD)	10.9791	10.6751
Dirham (AED)	0.9006	0.8875
Singapore Dollar (SGD)	2.4753	2.2572
U.S. Dollar (US$ or USD)	3.3080	3.2591
Euro (€ or EUR)	3.9693	3.4384
Forint Hungary (HUF)	0.0128	0.0111
Yen (JPY)	0.0294	0.0279
Pound Sterling (£ or GBP)	4.4714	4.0364
Turkish Lira (TRY)	0.8752	0.9258
Argentine Peso ($ or ARS)	0.1755	0.2056
Chilean Peso (CLP)	0.0054	0.0049
Uruguayan Peso (UYU)	0.1149	0.1122
Rande Africa (ZAR)	0.2690	0.2379
Renminbi Yuan China (CNY)	0.5087	0.4695
Saudi Riyal (SAR)	0.8821	0.8689
Qatar Riyal (QAR)	0.9088	0.8951
Omani Riyal (OMR)	8.6011	8.4718
Ringgit Malaysia (MYR)	0.8180	0.7267
Ruble Russia (RUB)	0.0574	0.0534
Won South Korea (KRW)	0.0031	0.0027
Average rates
Bath (THB)	0.0942	0.0989
Kwait Dinar (KWD)	10.5318	11.5548
Dirham (AED)	0.8692	0.9503
Singapore Dollar (SGD)	2.3130	2.5261
U.S. Dollar (US$ or USD)	3.1920	3.4901
Euro (€ or EUR)	3.6071	3.8615
Forint Hungary (HUF)	0.0117	0.0124
Yen (JPY)	0.0285	0.0321
Pound Sterling (£ or GBP)	4.1150	4.7464
Turkish Lira (TRY)	0.8759	1.1593
Argentine Peso ($ or ARS)	0.1934	0.2373
Chilean Peso (CLP)	0.0049	0.0052
Uruguayan Peso (UYU)	0.1115	0.1158
Rande Africa (ZAR)	0.2401	0.2372
Renminbi Yuan China (CNY)	0.4726	0.5261
Saudi Riyal (SAR)	0.8512	0.9307
Qatar Riyal (QAR)	0.8727	0.9586
Omani Riyal (OMR)	8.2977	9.0721
Ringgit Malaysia (MYR)	0.7435	0.8433
Ruble Russia (RUB)	0.0548	0.0521
Won South Korea (KRW)	0.0028	0.0030

Accounting judgments, estimates and assumptions

3.28. Accounting judgments, estimates and assumptions: as mentioned in note 2, in the process of applying the Company’s accounting policies, management made the following judgments which have a material impact on the amounts recognized in the consolidated financial statements:

·       fair value of financial instruments (note 4);

·       impairment of non-financial assets (note 5 and 18);

·       measurement of fair value of items related to business combinations (note 6);

·       allowance for doubtful accounts (note 9);

·       net realizable value provision for inventories (note 10);

·       fair value of biological assets (note 11);

·       loss on the reduction of recoverable value of taxes (note 12 and 13);

·       useful lives of property, plant and equipment and intangible (note 17 and 18);

·       share-based payment transactions (note 24);

·       pension and post-employment plans (note 25);

·       provision for tax, civil and labor risks (note 26); e

·       definition of the moment when significant risks and rewards of ownership are transferred in recognizing revenue.

The Company reviews the estimates and underlying assumptions used in its accounting estimates on a quarterly basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

XML

1. COMPANY'S OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2017

Companys Operations

Schedule of equity interest

The One Foods segment also began to incorporate the operations of Malaysia and some countries in the African continent and Eastern Europe.

1.1. Equity interest

						% equity interest
Entity		Main activity	Country	Participation	Accounting method	12.31.17	12.31.16
BRF Energia S.A.		Commercialization of eletric energy	Brazil	Direct	Consolidated	100.00%	100.00%
BRF GmbH		Holding	Austria	Direct	Consolidated	100.00%	100.00%
BRF Foods LLC	(h)	Import and commercialization of products	Russia	Indirect	Consolidated	99.90%	90.00%
BRF France SARL		Marketing and logistics services	France	Indirect	Consolidated	100.00%	100.00%
BRF Global Company Nigeria Ltd.		Marketing and logistics services	Nigeria	Indirect	Consolidated	99.00%	99.00%
BRF Global Company South Africa Proprietary Ltd.		Import and commercialization of products	South Africa	Indirect	Consolidated	100.00%	100.00%
BRF Global Company Nigeria Ltd.		Marketing and logistics services	Nigeria	Indirect	Consolidated	1.00%	1.00%
BRF Global GmbH	(b)	Holding and trading	Austria	Indirect	Consolidated	100.00%	100.00%
BRF Foods LLC	(h)	Import and commercialization of products	Russia	Indirect	Consolidated	0.10%	-
Qualy 5201 B.V.	(b)	Import, commercialization of products and holding	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Xamol Consultores Serviços Ltda.		Import and commercialization of products	Portugal	Indirect	Consolidated	100.00%	100.00%
BRF Japan KK		Marketing and logistics services	Japan	Indirect	Consolidated	100.00%	100.00%
BRF Korea LLC		Marketing and logistics services	Korea	Indirect	Consolidated	100.00%	100.00%
BRF Shanghai Management Consulting Co. Ltd.		Advisory and related services	China	Indirect	Consolidated	100.00%	100.00%
BRF Shanghai Trading Co. Ltd.		Commercialization and distribution of products	China	Indirect	Consolidated	100.00%	100.00%
BRF Singapore PTE Ltd.		Marketing and logistics services	Singapore	Indirect	Consolidated	100.00%	100.00%
BRF Germany GmbH		Import and commercialization of products	Germany	Indirect	Consolidated	100.00%	100.00%
BRF GmbH Turkiye Irtibat		Import and commercialization of products	Turkey	Indirect	Consolidated	100.00%	100.00%
BRF Holland B.V.		Import and commercialization of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	2.66%	2.63%
Eclipse Holding Cöoperatief U.A.		Holding	The Netherlands	Indirect	Consolidated	0.01%	0.01%
BRF B.V.		Industrialization, import and commercialization of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
ProudFood Lda	(j)	Import and commercialization of products	Angola	Indirect	Consolidated	10.00%	-
BRF Hungary LLC		Import and commercialization of products	Hungary	Indirect	Consolidated	100.00%	100.00%
BRF Iberia Alimentos SL		Import and commercialization of products	Spain	Indirect	Consolidated	100.00%	100.00%
BRF Invicta Ltd.	(l)	Import, commercialization and distribution of products	England	Indirect	Consolidated	69.16%	62.00%
Invicta Food Products Ltd.		Import and commercialization of products	England	Indirect	Consolidated	100.00%	100.00%
BRF Wrexham Ltd.		Industrialization, import and commercialization of products	England	Indirect	Consolidated	100.00%	100.00%
Invicta Food Group Ltd.	(b)	Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Invicta Foods Ltd.		Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Invicta Foodservice Ltd.		Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Universal Meats (UK) Ltd.	(b)	Import, Industrialization, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
BRF Italia SPA		Import and commercialization of products	Italy	Indirect	Consolidated	67.00%	67.00%
Compañía Paraguaya Comercial S.A.		Import and commercialization of products	Paraguay	Indirect	Consolidated	99.00%	99.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	50.48%	50.06%
Itega S.A.		Holding	Argentina	Indirect	Consolidated	96.00%	96.00%
Eclipse Holding Cöoperatief U.A.		Holding	The Netherlands	Indirect	Consolidated	99.99%	99.99%
Buenos Aires Fortune S.A.		Holding	Argentina	Indirect	Consolidated	5.00%	5.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	8.44%	10.61%
Eclipse Latam Holdings		Holding	Spain	Indirect	Consolidated	100.00%	100.00%
Buenos Aires Fortune S.A.		Holding	Argentina	Indirect	Consolidated	95.00%	95.00%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	6.53%	6.34%
Campo Austral S.A.	(m)	Industrialization and commercialization of products	Argentina	Indirect	Consolidated	31.89%	30.36%
Itega S.A.		Holding	Argentina	Indirect	Consolidated	4.00%	4.00%
Golden Foods Poultry Limited		Holding	Thailand	Indirect	Consolidated	48.52%	48.52%
Golden Poultry Siam Limited		Holding	Thailand	Indirect	Consolidated	51.84%	51.84%
Golden Poultry Siam Limited		Holding	Thailand	Indirect	Consolidated	48.16%	48.16%
BRF Thailand Limited		Import, Industrialization, commercialization and distribution of products	Thailand	Indirect	Consolidated	100.00%	100.00%
BRF Feed Thailand Limited		Import, Industrialization, commercialization and distribution of products	Thailand	Indirect	Consolidated	100.00%	100.00%
Golden Foods Sales (Europe) Limited		Holding and trading	England	Indirect	Consolidated	100.00%	100.00%
Golden Quality Foods Europe BV		Import, commercialization and distribution of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Golden Quality Foods Netherlands BV		Import, commercialization and distribution of products	The Netherlands	Indirect	Consolidated	100.00%	100.00%
Golden Foods Siam Europe Limited	(b)	Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Golden Quality Poultry (UK) Ltd		Import, commercialization and distribution of products	England	Indirect	Consolidated	100.00%	100.00%
Perdigão Europe Lda.		Import and export of products	Portugal	Indirect	Consolidated	100.00%	100.00%
Perdigão International Ltd.		Import and export of products	Cayman Island	Indirect	Consolidated	100.00%	100.00%
BFF International Ltd.		Financial fundraising	Cayman Island	Indirect	Consolidated	100.00%	100.00%
Highline International	(a)	Financial fundraising	Cayman Island	Indirect	Consolidated	100.00%	100.00%
Sadia Overseas Ltd.	(q)	Financial fundraising	Cayman Island	Direct	Consolidated	98.00%	-
ProudFood Lda	(j)	Import and commercialization of products	Angola	Indirect	Consolidated	90.00%	-
Sadia Chile S.A.		Import and commercialization of products	Chile	Indirect	Consolidated	40.00%	40.00%
Sadia Foods GmbH		Import and commercialization of products	Germany	Indirect	Consolidated	100.00%	100.00%
SATS BRF Food PTE Ltd.		Import, industrialization, commercialization and distribution of products	Singapore	Joint venture	Equity pick-up	49.00%	49.00%
BRF Global Namíbia		Import and commercialization of products	Namibia	Indirect	Consolidated	100.00%	100.00%
Wellax Food Logistics C.P.A.S.U. Lda.		Import and commercialization of products	Portugal	Indirect	Consolidated	100.00%	1.00
BRF Luxembourg Sarl	(f)	Holding	Luxemburgo	Direct	Consolidated	100.00%	100.00%
BRF Austria GmbH	(f)	Holding	Austria	Indirect	Consolidated	100.00%	100.00%
One Foods Holdings Ltd	(d) (f)	Holding	United Arab Emirates	Indirect	Consolidated	100.00%	-
Al-Wafi Food Products Factory LLC	(e) (f)	Industrialization and commercialization of products	United Arab Emirates	Indirect	Consolidated	49.00%	-
Badi Ltd.	(e) (f)	Holding	United Arab Emirates	Indirect	Consolidated	100.00%	-
Al-Wafi Al-Takamol International for Foods Products	(e) (f)	Import and commercialization of products	Saudi Arabia	Indirect	Consolidated	75.00%	-
BRF Al Yasra Food K.S.C.C. ("BRF AFC")	(e) (f)	Import, commercialization and distribution of products	Kuwait	Indirect	Consolidated	49.00%	-
BRF Foods GmbH	(e) (f)	Industrialization, import and commercialization of products	Austria	Indirect	Consolidated	100.00%	-
Al Khan Foodstuff LLC ("AKF")	(c) (e)	Import, commercialization and distribution of products	Oman	Indirect	Consolidated	70.00%	-
FFM Further Processing Sdn. Bhd.	(e) (f)	Industrialization, import and commercialization of products	Malaysia	Indirect	Consolidated	70.00%	70.00%
SHB Comércio e Indústria de Alimentos S.A.	(e) (f)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	99.99%	-
TBQ Foods GmbH	(i) (n)	Commercialization of products	Austria	Indirect	Consolidated	60.00%	-
Banvit Bandirma Vitaminli	(n) (p)	Holding	Turkey	Indirect	Consolidated	91.71%	-
Banvit Enerji ve Elektrik Üretim  Ltd. Sti.	(n)	Commercialization of eletric energy	Turkey	Indirect	Consolidated	100.00%	-
Banvit Foods SRL	(n)	Industrialization of grains and animal feed	Romania	Indirect	Consolidated	0.01%	-
Nutrinvestments BV	(n)	Holding	The Netherlands	Indirect	Consolidated	100.00%	-
Banvit ME FZE	(n)	Marketing and logistics services	United Arab Emirates	Indirect	Consolidated	100.00%	-
Banvit Foods SRL	(n)	Industrialization of grains and animal feed	Romania	Indirect	Consolidated	99.99%	-
BRF Malaysia Sdn Bhd	(k)	Marketing and logistics services	Malaysia	Indireta	Consolidated	100.00%	100.00%
Federal Foods LLC	(e) (f)	Import, commercialization and distribution of products	United Arab Emirates	Indirect	Consolidated	49.00%	-
Federal Foods Qatar	(e) (f)	Import, commercialization and distribution of products	Qatar	Indirect	Consolidated	49.00%	49.00%
SHB Comércio e Indústria de Alimentos S.A.	(e) (f)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	0.01%	-
BRF Hong Kong LLC	(g)	Import, commercialization and distribution of products	Hong Kong	Indirect	Consolidated	100.00%	-
Establecimiento Levino Zaccardi y Cia. S.A.	(a)	Industrialization and commercialization of dairy products	Argentina	Direct	Consolidated	99.94%	99.94%
BRF Pet S.A.	(o)	Industrialization and commercialization and distribution of feed and nutrients for animals	Brazil	Direct	Consolidated	100.00%	100.00%
PP-BIO Administração de bem próprio S.A.		Management of assets	Brazil	Affiliate	Equity pick-up	33.33%	33.33%
PSA Laboratório Veterinário Ltda.		Veterinary activities	Brazil	Direct	Consolidated	99.99%	99.99%
Sino dos Alpes Alimentos Ltda.	(a)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	99.99%	99.99%
PR-SAD Administração de bem próprio S.A.		Management of assets	Brazil	Affiliate	Equity pick-up	33.33%	33.33%
Quickfood S.A.		Industrialization and commercialization of products	Argentina	Direct	Consolidated	91.21%	91.21%
Sadia Alimentos S.A.		Holding	Argentina	Direct	Consolidated	43.10%	43.10%
Avex S.A.		Industrialization and commercialization of products	Argentina	Indirect	Consolidated	33.98%	33.98%
Sadia International Ltd.		Import and commercialization of products	Cayman Island	Direct	Consolidated	100.00%	100.00%
Sadia Chile S.A.		Import and commercialization of products	Chile	Indirect	Consolidated	60.00%	60.00%
Sadia Uruguay S.A.		Import and commercialization of products	Uruguay	Indirect	Consolidated	5.10%	5.10%
Avex S.A.		Industrialization and commercialization of products	Argentina	Indirect	Consolidated	66.02%	66.02%
Compañía Paraguaya Comercial S.A.		Import and commercialization of products	Paraguay	Indirect	Consolidated	1.00%	1.00%
Sadia Alimentos S.A.		Holding	Argentina	Indirect	Consolidated	56.90%	56.90%
Sadia Overseas Ltd.	(q)	Financial fundraising	Cayman Island	Direct	Consolidated	2.00%	100.00%
Sadia Uruguay S.A.		Import and commercialization of products	Uruguay	Direct	Consolidated	94.90%	94.90%
UP Alimentos Ltda.		Industrialization and commercialization of products	Brazil	Affiliate	Equity pick-up	50.00%	50.00%
Vip S.A. Empreendimentos e Participações Imobiliárias		Commercialization of owned real state	Brazil	Direct	Consolidated	100.00%	100.00%
Establecimiento Levino Zaccardi y Cia. S.A.	(a)	Industrialization and commercialization of dairy products	Argentina	Indirect	Consolidated	0.06%	0.06%
PSA Laboratório Veterinário Ltda.		Veterinary activities	Brazil	Indirect	Consolidated	0.01%	0.01%
Sino dos Alpes Alimentos Ltda.	(a)	Industrialization and commercialization of products	Brazil	Indirect	Consolidated	0.01%	0.01%

^(a) Dormant subsidiaries.

^(b) The wholly-owned subsidiary BRF Global GmbH, operates as a trading in the European market and owns 101 direct subsidiaries in Madeira Island, Portugal, with an investment as of December 31, 2017 of R$3.6 (R$3.3 as of December 31, 2016) and a direct subsidiary in Den Bosch, The Netherlands, denominated Qualy 20 with an investment as of December 31, 2017 of R$6.5 (R$6.6 as of December 31, 2016). The wholly-owned subsidiary Qualy 5201 B.V. owns 212 subsidiaries in The Netherlands being the amount of this investment as of December 31, 2017 of R$20.2 (R$18.2 as of December 31, 2016). The indirect subsidiary Invicta Food Group Ltd. owns 120 direct subsidiaries in Ashford, England, with an investment of R$126.6 as of December 31, 2017 (R$112.5 as of December 31, 2016). The indirect subsidiary Universal Meats (UK) Ltd owns 99 direct subsidiaries in Ashford, England with an investment of R$41.6 as of December 1, 2017 (R$37.5 as of December 31, 2016). The indirect subsidiary Golden Foods Siam Europe Ltd (GFE) owns 32 subsidiaries in Ashford. England with an investment of R$0.02 as of December 31, 2017 (R$114.1 as of December 31, 2016). The purpose of these subsidiaries is to operate in the European market to increase the Company’s market share, which is regulated by a system of poultry and turkey meat import quotas.

^(c) On January 02, 2017, disposal of subsidiary to BRF Foods GmbH.

^(d) On January 11, 2017, establishment of equity interest.

^(e) On January 12, 2017, acquisition of equity interest by One Foods Holdings Ltd. On December 31, 2016, such equity interests were held by wholly-owned subsidiary BRF GmbH.

^(f) On January 13, 2017, with investment in SHB through capital increase in direct capital increase in direct subsidiaries. On December 31, 2016, SHB’s equity interest was held by BRF S.A. (99.00%) and by wholly-owned subsidiary PSA Laboratório Veterinário Ltda (1.00%).

^(g) On January 13, 2017, establishment of equity interest.

^(h) On February 28, 2017, acquisition of equity interest by BRF GmbH and BRF Global GmbH. On December 31, 2016, such equity interest was held by wholly-owned subsidiary Sadia Foods GmbH.

⁽ⁱ⁾ On March 08, 2017, establishment of the subsidiaries TBQ Foods GmbH.

^(j) On March 31, 2017, establishment of equity interest, 90% held by the subsidiary BRF GmbH and 10% held by the subsidiary BRF Holland B.V., both wholly-owned subsidiary.

^(k) On April 10, 2017, disposal of 100% of equity interest to One Foods Holdings Ltd.

^(l) On April 18, 2017, acquisition of 7.16% of equity interest.

^(m) On April 27,2017, change in equity interest of the subsidiaries of Campo Austral, as a result of the conclusion of the merger process started a November 01, 2016.

⁽ⁿ⁾ On May 25, 2017, subsidiary TBQ Foods GmbH acquired 79.48% of the shares issued by Banvit Bandirma Vitaminli Yem Sanayii A.S..

^(o) On June 21, 2017, change name and corporate purpose of K&S Alimentos S.A. to BRF Pet S.A..

^(p) On August 11, 2017, concluded the acquisition of part of the shares issued by Banvit Bandirma Vitaminli Yem Sanayii S.A., and thus holds 91.71% of the equity interest.

^(q) On December 11, 2017, change in equity interest of the Sadia Overseas Ltd.

XML

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2017

Summary Of Significant Accounting Policies Tables

Schedule of exchange rates in Brazilian Reais

The exchange rates in Brazilian Reais effective at the balance sheet dates were as follows:

Exchange rate at the balance sheet date	12.31.17	12.31.16
Bath (THB)	0.1015	0.0911
Kwait Dinar (KWD)	10.9791	10.6751
Dirham (AED)	0.9006	0.8875
Singapore Dollar (SGD)	2.4753	2.2572
U.S. Dollar (US$ or USD)	3.3080	3.2591
Euro (€ or EUR)	3.9693	3.4384
Forint Hungary (HUF)	0.0128	0.0111
Yen (JPY)	0.0294	0.0279
Pound Sterling (£ or GBP)	4.4714	4.0364
Turkish Lira (TRY)	0.8752	0.9258
Argentine Peso ($ or ARS)	0.1755	0.2056
Chilean Peso (CLP)	0.0054	0.0049
Uruguayan Peso (UYU)	0.1149	0.1122
Rande Africa (ZAR)	0.2690	0.2379
Renminbi Yuan China (CNY)	0.5087	0.4695
Saudi Riyal (SAR)	0.8821	0.8689
Qatar Riyal (QAR)	0.9088	0.8951
Omani Riyal (OMR)	8.6011	8.4718
Ringgit Malaysia (MYR)	0.8180	0.7267
Ruble Russia (RUB)	0.0574	0.0534
Won South Korea (KRW)	0.0031	0.0027
Average rates
Bath (THB)	0.0942	0.0989
Kwait Dinar (KWD)	10.5318	11.5548
Dirham (AED)	0.8692	0.9503
Singapore Dollar (SGD)	2.3130	2.5261
U.S. Dollar (US$ or USD)	3.1920	3.4901
Euro (€ or EUR)	3.6071	3.8615
Forint Hungary (HUF)	0.0117	0.0124
Yen (JPY)	0.0285	0.0321
Pound Sterling (£ or GBP)	4.1150	4.7464
Turkish Lira (TRY)	0.8759	1.1593
Argentine Peso ($ or ARS)	0.1934	0.2373
Chilean Peso (CLP)	0.0049	0.0052
Uruguayan Peso (UYU)	0.1115	0.1158
Rande Africa (ZAR)	0.2401	0.2372
Renminbi Yuan China (CNY)	0.4726	0.5261
Saudi Riyal (SAR)	0.8512	0.9307
Qatar Riyal (QAR)	0.8727	0.9586
Omani Riyal (OMR)	8.2977	9.0721
Ringgit Malaysia (MYR)	0.7435	0.8433
Ruble Russia (RUB)	0.0548	0.0521
Won South Korea (KRW)	0.0028	0.0030

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments And Risk Management Tables

Schedule of commitments and contractual obligations

The table below summarizes the commitments and contractual obligations that may impact the Company’s liquidity:

	Book value	Cash flow contracted	2018	2019	2020	2021	2022	2023 onwards
Non derivative financial liabilities
Loans and financing	11,410.7	11,953.8	4,533.2	4,459.4	1,337.1	99.5	720.7	803.9
BRF bonds	4,479.2	5,262.4	662.3	143.0	143.0	143.0	2,508.2	1,663.0
BFF bonds	292.2	336.4	20.6	20.6	295.1	-	-	-
BRF GMBH bonds	1,628.9	2,301.5	71.9	71.9	71.9	71.9	71.9	1,941.8
Quickfood bonds	168.0	265.9	57.5	89.5	60.6	43.6	14.7	-
SHB bonds	2,465.4	3,247.0	117.8	117.8	117.8	117.8	117.8	2,657.8
Trade accounts payable	6,445.5	6,445.5	6,445.5	-	-	-	-	-
Supply chain finance	715.2	715.2	715.2	-	-	-	-	-
Financial lease	232.6	352.8	72.5	63.5	45.4	29.4	24.4	117.6
Operational lease	-	655.6	374.9	76.8	44.6	34.5	31.7	93.0
Derivative financial liabilities
Financial instruments designated as cash flow hedge
Swap (Interest  rate and exchange rate)	166.3	166.4	166.1	0.3	-	-	-	-
Currency derivatives (NDF)	6.8	10.3	10.3	-	-	-	-	-
Commodities derivatives - Corn (NDF)	4.6	5.0	5.0	-	-	-	-	-
Commodities derivatives - Soybean meal (NDF)	3.0	3.0	3.0	-	-	-	-	-
Commodities derivatives - Soybean oil (NDF)	0.1	0.1	0.1	-	-	-	-	-
Currency derivatives (options)	25.9	0.5	0.5	-	-	-	-	-
Commodities derivatives - Corn (NDF)	0.6	-	-	-	-	-	-	-
Commodities derivatives - Soybean (Options)	1.5	0.2	0.2	-	-	-	-	-
Financial instruments not designated as cash flow hedge
Currency derivatives (NDF)	2.0	9.4	9.4	-	-	-	-	-
Currency derivatives (Future)	0.2	0.2	0.2	-	-	-	-	-
Swap (index / currency / stocks)	86.5	86.4	57.6	28.8	-	-	-	-
Commodities derivatives (Future)	2.0	-	-	-	-	-	-	-

Schedule of assets and liabilities denominated in foreign currency

Assets and liabilities denominated in foreign currency are as follows, summarized in Brazilian Reais:

	12.31.17	12.31.16
Cash and cash equivalents	278.1	27.7
Trade accounts receivable	862.2	1,512.4
Trade accounts payable	31.4	(707.3)
Loans and financing	(6,136.4)	(5,425.2)
Hedge	3,049.7	3,477.7
Investments, net	1,985.7	441.8
Other assets and liabilities, net	(15.3)	74.8
	-	-
Foreign exchange exposure	55.4	(598.3)

Schedule of debt levels and net debt

The Company monitors debt levels and net debt, which are shown below:

	12.31.17			12.31.16
	Current	Non-current	Total	Total
Foreign currency debt	(1,438.6)	(9,662.8)	(11,101.3)	(10,318.7)
Local currency debt	(3,592.8)	(5,750.3)	(9,343.0)	(8,643.6)
Other financial liabilities	(299.5)	-	(299.5)	(529.6)
Gross debt	(5,330.9)	(15,413.1)	(20,743.8)	(19,491.9)
Marketable securities and cash and cash equivalents	6,239.3	568.8	6,808.1	7,506.9
Other financial assets	90.5	-	90.5	198.0
Restricted cash	127.8	407.8	535.6	645.9
Net debt	1,126.7	(14,436.5)	(13,309.6)	(11,141.1)

Schedule of derivative financial instruments

The positions of outstanding derivative financial instruments are as follows:

			12.31.17		12.31.16
Instrument	Hedge object	Reference currency (notional)	Reference value (notional)	Fair value (1)	Reference value (notional)	Fair value (1)
Financial instruments designated as hedge accounting
NDF - U.S. Dollar sale	Currency	US$	208.4	(3.7)	106.9	6.6
NDF - Euro sale	Currency	EUR	15.0	(0.6)	145.0	56.9
NDF - Pound Sterling sale	Currency	GBP	25.0	(0.9)	34.0	11.1
Currency swap - U.S. Dollar	Currency	BRL	250.0	(153.2)	250.0	(150.8)
Interest rate swap - U.S. Dollar	Interest	US$	100.0	(2.5)	200.0	(11.3)
Options - U.S. Dollar	Currency	US$	361.8	(2.6)	1,322.0	66.8
Options  - Euro	Currency	EUR	-	-	80.0	16.9
NDF - Commodities purchase	Commodities	Ton/US$	598.5	(7.5)	85.0	(0.9)
NDF - Commodities sale	Commodities	Ton/US$	77.7	1.8	308.6	1.8
Future - B3	Commodities	Ton/US$	99.1	0.3	32.0	-
Options (Collar) - Commodities	Commodities	Ton/US$	49.9	(1.5)	-	-
Interest rate swap -  U.S. Dollar	Interest	US$	200.0	(10.8)	200.0	(22.0)
NDF - U.S. Dollar sale	Currency	US$	80.0	(0.4)	-	-
Options - U.S. Dollar	Currency	US$	40.0	0.2	-	-
Fixed exchange rate -  U.S. Dollar	Currency	US$	-	-	0.8	(0.1)
Fixed exchange rate - Euro	Currency	EUR	-	-	6.6	(0.2)
Fixed exchange rate - Pound Sterling	Currency	GBP	-	-	6.6	-
Total				(181.4)		(25.2)
Financial instruments not designated as hedge accounting
NDF - Purchase of U.S. Dollar	Currency	US$	800.0	(2.0)	680.0	(82.5)
NDF - Purchase of Euro	Currency	EUR	30.0	0.2	-	-
Currency swap - U.S. Dollar	Currency	US$	50.0	1.3	222.0	(200.8)
Currency swap - Euro	Currency	EUR	-	-	13.8	(17.7)
Interest rate - R$	Interest	BRL	549.0	23.9	50.0	0.4
Interest rate - U.S. Dollar	Interest	US$	8.3	-	-	-
Stock swap (2)	Stock	BRL	510.1	(86.4)	-	-
Future - B3	Currency	US$	36.0	(0.2)	150.0	(5.2)
NDF - Purchase of Euro	Currency	EUR	550.0	36.2	300.0	(0.5)
Options -Turkish Lira	Currency	US$	50.0	(0.6)	-	-
Fixed exchange rate - US$	Currency	US$	-	-	0.8	-
Total				(27.6)		(306.3)
Total				(209.0)		(331.5)

⁽¹⁾ The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

⁽²⁾ Total Return Swap asset in BRF’s stocks and liability in percentage of CDI.

Schedule of position of the currency non-deliverable forward - NDF

The position of the currency non-deliverable forward – NDF, by maturity, as well as the weighted average exchange rates and the fair value, are presented as follows:

12.31.17
SHORT	R$ x US$			R$ x EUR			R$ x GBP
Maturities	Notional (US$)	Average rate	Fair value	Notional (EUR)	Average rate	Fair value	Notional (GBP)	Average rate	Fair value
Financial instruments designated as cash flow hedge
January 2018	130.0	3.2891	(3.2)	15.0	3.9244	(0.6)	10.0	4.3710	(0.9)
43132	78.4	3.3128	(0.5)	-	-	-	15.0	4.4690	-
	208.4	3.2980	(3.7)	15.0	3.9244	(0.6)	25.0	4.4298	(0.9)

LONG	US$ x R$			EUR x R$
Maturities	Notional (US$)	Average rate	Fair value	Notional (EUR)	Average rate	Fair value
Financial instruments not designated as hedge accounting
March 2018	800.0	3.3381	(2.0)	30.0	4.0000	0.2
	800.0	3.3381	(2.0)	30.0	4.0000	0.2

SHORT	R$ x US$
Maturities	Notional (US$)	Average rate	Fair value
Financial instruments designated as cash flow hedge
January 2018	20.0	3.3238	0.2
February 2018	40.0	3.3059	(0.7)
March 2018	20.0	3.3340	-
	80.0	3.3174	(0.4)

LONG	US$ x EUR
Maturities	Notional (EUR)	Average rate	Fair value
Financial instruments not designated as hedge accounting
March 2018	550.0	1.1817	36.2
	550.0	1.1817	36.2

Schedule of position of the commodities non-deliverable forwards - NFD

The position of the commodities non-deliverable forwards – NFD, by maturity, as well as weighted average exchange rates and the fair value, are presented as follows: 

LONG - Soybean meal	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as cash flow hedge
April 2018	10.0	131.80	(0.5)
June 2018	43.0	131.71	(1.7)
July 2018	13.0	129.43	(0.2)
August 2018	8.0	129.82	(0.2)
September 2018	8.0	128.74	(0.2)
November 2018	10.0	128.74	(0.2)
	92.0	130.65	(3.0)

LONG - Corn	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as cash flow hedge
February 2018	36.6	138.10	-
April 2018	320.0	145.12	(4.0)
August 2018	20.0	148.40	(0.1)
November 2018	80.0	152.38	(0.3)
December 2018	35.0	152.26	(0.1)
	491.6	146.42	(4.5)

LONG - Soybean oil	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as cash flow hedge
February 2018	3.0	731.33	-
April 2018	3.0	733.33	-
June 2018	2.0	745.16	-
July 2018	1.0	744.50	-
August 2018	1.0	744.94	-
September 2018	2.0	741.63	-
November 2018	3.0	732.74	-
	15.0	737.02	-

SHORT - Corn	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as fair value hedge
June 2018	33.7	149.87	0.6
August 2018	21.0	149.19	0.1
	54.7	149.61	0.7

SHORT - Soybean	Quantity	Average rate	Fair
Maturities	Ton	US$/Ton	value
Designated as fair value hedge
February 2018	23.0	367.26	1.1
	23.0	367.26	1.1

Schedule of interest rate and currency swap

The position of interest rate and currency swap is presented as follows:

12.31.17
Instrument	Maturity	Assets (Hedged object)	Liabilities (Protected risk)	Notional	Fair value
Financial instruments designated as cash flow hedge
Interest rate	06.18.18	LIBOR 3M + 2.60% p.a.	5.47% p.a.	100.0	(2.5)
Interest rate	02.01.19	LIBOR 6M + 2.70% p.a.	5.90% p.a.	100.0	(5.4)
Interest rate	02.01.19	LIBOR 6M + 2.70% p.a.	5.88% p.a.	100.0	(5.4)
				300.0	(13.3)
Currency swap	05.22.18	R$ + 7.75%	US$ + 1.60%	250.0	(153.0)
					(166.3)
Financial instruments not designated as hedge accounting
Interest rate	01.22.18	LIBOR 6M + 2.82% p.a.	5.86% p.a.	8.3	-
Interest rate - Bond	05.22.18	R$ (Fixed rate of 7.75% p.a.)	68.84% CDI	50.0	0.5
Interest rate	04.02.19	R$ (Fixed rate of 9.61% p.a.)	95.00% CDI	250.0	11.5
Interest rate	04.02.19	R$ (Fixed rate of 9.61% p.a.)	93.54% CDI	249.0	11.9
					23.9
Currency swap	04.12.19	US$ + 2,67% p.a.	110.91% CDI	50.0	1.3
Stock swap	02.05.19	BRFS3	110.00% CDI	510.1	(86.4)
					(61.3)

Schedule of currency options

The average rates of options contracts may not reflect the expected final result, such as those presented in the table of sensitivity analysis, since its consists of several transactions.

12.31.17
R$ x US$
Type	Maturities	Notional (US$)	Average US$	Fair value
Financial instruments designated as cash flow hedge
Collar - Call (Sale)	January 2018	(60.0)	3.4500	(2.0)
Collar - Put (Purchase)	January 2018	60.0	3.1900	0.9
Collar - Call (Sale)	February 2018	(61.8)	3.3660	(3.2)
Collar - Put (Purchase)	February 2018	61.8	3.2501	2.2
Collar - Call (Sale)	March 2018	(100.0)	3.4074	(5.6)
Collar - Put (Purchase)	March 2018	100.0	3.2894	6.0
Collar - Call (Sale)	April 2018	(40.0)	3.4393	(2.6)
Collar - Put (Purchase)	April 2018	40.0	3.3025	3.0
Collar - Call (Sale)	June 2018	(40.0)	3.4745	(3.3)
Collar - Put (Purchase)	June 2018	40.0	3.2250	2.3
Collar - Call (Sale)	July 2018	(20.0)	3.4930	(1.9)
Collar - Put (Purchase)	July 2018	20.0	3.3100	2.0
Collar - Call (Sale)	August 2018	(20.0)	3.5280	(2.0)
Collar - Put (Purchase)	August 2018	20.0	3.2900	1.9
Collar - Call (Sale)	September 2018	(20.0)	3.5380	(2.2)
Collar - Put (Purchase)	September 2018	20.0	3.2800	1.9
		-		(2.6)

12.31.17
R$ x US$
Type	Maturities	Notional (US$)	Average US$	Fair value
Financial instruments designated as cash flow hedge
Collar - Call (Sale)	April 2018	(20.0)	3.4500	(1.3)
Collar - Put (Purchase)	April 2018	20.0	3.2600	1.1
Collar - Call (Sale)	June 2018	(20.0)	3.4857	(1.7)
Collar - Put (Purchase)	June 2018	20.0	3.3300	2.1
		-		0.2

12.31.17
TRY x US$
Type	Maturities	Notional (US$)	Average US$	Fair value
Financial instruments not designated as hedge accounting
Collar - Call (Sale)	June 2018	(50.0)	4.4342	(2.0)
Collar - Put (Purchase)	June 2018	50.0	3.6960	1.4
				(0.6)

ii. Soybean meal options

12.31.17
Soybean meal		Quantity	Average rate	Fair value
Type	Maturities	Ton	US$/Ton
Financial instruments designated as cash flow hedge
Collar - Call (Purchase)	February 2018	10.0	142.91	-
Collar - Put (Sale)	February 2018	(10.0)	122.04	(0.2)
Collar - Call (Purchase)	April 2018	20.0	146.65	0.1
Collar - Put (Sale)	April 2018	(20.0)	125.39	(0.7)
Collar - Call (Purchase)	June 2018	10.0	145.07	0.2
Collar - Put (Sale)	June 2018	(10.0)	126.18	(0.5)
Collar - Call (Purchase)	July 2018	10.0	141.14	0.2
Collar - Put (Sale)	July 2018	(10.0)	129.72	(0.7)
				(1.6)

Schedule of position of non-derivative financial instruments is presented

The position of non-derivative financial instruments designated as cash flow hedge is presented as follows:

			12.31.17		12.31.16
Hedge Instrument	Hedge object	Reference currency (notional)	Value (notional)	Fair value (1)	Value (notional)	Fair value (1)
Export prepayment - PPEs	Exchange rate	USD	208.3	689.2	300.0	977.7
Senior unsecured notes - Bonds	Exchange rate	USD	268.7	990.3	268.7	977.2
			-	-	-	-
			477.0	1,679.5	568.7	1,954.9

⁽¹⁾ Reference value converted by FX rate in effect at year-end or partial repeal dates. This amount set forth the total that may impact the Company’s shareholders’ equity.

a. Export prepayments – PPEs

The position of PPEs designated as cash flow hedge is presented as follows:

12.31.17
Hedge Instrument	Type of risk hedged	Maturities	Notional (US$)	Average rate	Fair value (1)
Export prepayment - PPE	US$ (E.R.)	01.2018 to 02.2019	208.3	1.8643	689.2

⁽¹⁾ Reference value converted by the Ptax rate at the end of the year or partial revocation dates. This amount set forth the total that may impact the Company's shareholders' equity.

b. Senior unsecured notes – Bonds

The position of bonds designated as cash flow hedge is presented as follows:

12.31.17
Hedge Instrument	Type of risk hedged	Maturities	Notional (US$)	Average rate	Fair value (1)
BRF SA BRFSBZ5	US$ (E.R.)	06.2022	118.7	2.0213	494.1
BRF SA BRFSBZ3	US$ (E.R.)	05.2023	150.0	2.0387	496.2
			268.7	2.0310	990.3

⁽¹⁾ Reference value converted by the Ptax rate at the end of the year or partial revocation dates. This amount set forth the total that may impact the Company's shareholders' equity.

Schedule of gains and losses of derivative and non-derivative financial instruments

The unrealized gains and losses of derivative and non-derivative financial instruments designated as cash flow hedge while unrealized are recorded as a component of other comprehensive income, as set forth below:

	Shareholders' Equity
	12.31.17	12.31.16
Derivatives designated as cash flow hedges
Foreign exchange risks	(162.5)	(29.2)
Interest risks	(8.5)	(25.9)
Commodity risks	(10.6)	3.4
	(181.6)	(51.7)
Non derivatives designated as cash flow hedges
Foreign exchange risks	(682.1)	(812.0)
Gross losses	(863.7)	(863.7)
Deferred taxes on losses	291.5	287.7
OCI recognized by subsidiaries	-	-
Losses, net of taxes	(572.2)	(576.0)
Change in gross losses	-	820.0
Income taxes on financial instruments adjustments	3.8	(272.7)
OCI recognized by subsidiaries	-	-
Impact in other comprehensive income	3.8	547.3

Schedule of breakdown of financial instruments by category - except derivatives

Breakdown of financial instruments by category – except derivatives

	12.31.17
	Loans and receivables	Available  for sale	Trading securities	Held to maturity	Financial liabilities	Total
Assets
Amortized cost
Cash and bank accounts	1,670.1	-	-	-	-	1,670.1
Marketable securities	-	-	-	257.0	-	257.0
Restricted cash	-	-	-	535.6	-	535.6
Trade accounts receivable	3,925.3	-	-	-	-	3,925.3
Other credits	229.5	-	-	-	-	229.5
Other receivables	28.9	-	-	-	-	28.9
Fair value	-	-	-	-	-	-
Cash equivalents	-	-	4,340.7	-	-	4,340.7
Marketable securities	-	344.3	196.0	-	-	540.3
	-	-	-	-	-	-
Liabilities	-	-	-	-	-	-
Amortized cost	-	-	-	-	-	-
Trade accounts payable	-	-	-	-	(6,445.5)	(6,445.5)
Supply chain finance	-	-	-	-	(715.2)	(715.2)
Loans and financing	-	-	-	-	-	-
Local currency	-	-	-	-	(9,343.0)	(9,343.0)
Foreign currency	-	-	-	-	(11,101.3)	(11,101.3)
Finance lease payable	-	-	-	-	(232.6)	(232.6)
	5,853.8	344.3	4,536.7	792.6	(27,837.6)	(16,310.2)

	12.31.16
	Loans and receivables	Available  for sale	Trading securities	Held to maturity	Financial liabilities	Total
Assets
Amortized cost
Cash and bank accounts	1,730.4	-	-	-	-	1,730.4
Marketable securities	-	-	-	255.5	-	255.5
Restricted cash	-	-	-	645.8	-	645.8
Trade accounts receivable	3,095.8	-	-	-	-	3,095.8
Other credits	335.5	-	-	-	-	335.5
Other receivables	74.2	-	-	-	-	74.2
Fair value	-	-	-	-	-	-
Cash equivalents	-	-	4,626.5	-	-	4,626.5
Marketable securities	-	623.3	271.2	-	-	894.5
	-	-	-	-	-	-
Liabilities	-	-	-	-	-	-
Amortized cost	-	-	-	-	-	-
Trade accounts payable	-	-	-	-	(5,839.8)	(5,839.8)
Supply chain finance	-	-	-	-	(1,335.6)	(1,335.6)
Loans and financing	-	-	-	-	-	-
Local currency	-	-	-	-	(8,643.7)	(8,643.7)
Foreign currency	-	-	-	-	(10,318.7)	(10,318.7)
Finance lease payable	-	-	-	-	(216.8)	(216.8)
Fair value	-	-	-	-	-	-
Loans and financing - NCE	-	-	-	-	-	-
	5,235.9	623.3	4,897.7	901.3	(26,354.6)	(14,696.4)

For the year ended on December 31, 2017, there were no changes between the 3 levels of hierarchy.

	12.31.17
	Level 1	Level 2	Level 3	Total
Assets
Financial assets
Available for sale
Credit linked notes	15.4	-	-	15.4
Public securities	-	-	-	-
Stocks	328.8	-	-	328.8
Held for trading
Financial treasury bills	166.3	-	-	166.3
Investment funds	29.7	-	-	29.7
Other financial assets
Derivatives designed as hedge accounting	-	27.5	-	27.5
Derivatives not designated as hedge accounting	-	63.1	-	63.1
	540.2	90.6	-	630.8
Liabilities
Financial liabilities
Other financial liabilities
Derivatives designed as hedge accounting	-	(208.8)	-	(208.8)
Derivatives not designated as hedge accounting	-	(90.7)	-	(90.7)
	-	(299.5)	-	(299.5)

	12.31.16
	Level 1	Level 2	Level 3	Total
Assets
Financial assets
Available for sale
Credit linked notes	187.4	-	-	187.4
Public securities	56.4	-	-	56.4
Stocks	379.5	-	-	379.5
Held for trading
Bank deposit certificates	-	48.4	-	48.4
Financial treasury bills	180.5	-	-	180.5
Investment funds	42.3	-	-	42.3
Other financial assets	-	-	-	-
Derivatives designed as hedge accounting	-	197.5	-	197.5
Derivatives not designated as hedge accounting	-	0.5	-	0.5
	846.1	246.4	-	1,092.5
Liabilities
Financial liabilities
Other financial liabilities
Derivatives designed as hedge accounting	-	(222.8)	-	(222.8)
Derivatives not designated as hedge accounting	-	(306.8)	-	(306.8)
	-	(529.6)	-	(529.6)

Schedule of classification of financial assets and liabilities according to the valuation hierarchy

The table below presents the overall classification of financial assets and liabilities according to the valuation hierarchy. For the year ended on December 31, 2017, there were no changes between the 3 levels of hierarchy.

	12.31.17
	Level 1	Level 2	Level 3	Total
Assets
Financial assets
Available for sale
Credit linked notes	15.4	-	-	15.4
Public securities	-	-	-	-
Stocks	328.8	-	-	328.8
Held for trading
Financial treasury bills	166.3	-	-	166.3
Investment funds	29.7	-	-	29.7
Other financial assets
Derivatives designed as hedge accounting	-	27.5	-	27.5
Derivatives not designated as hedge accounting	-	63.1	-	63.1
	540.2	90.6	-	630.8
Liabilities
Financial liabilities
Other financial liabilities
Derivatives designed as hedge accounting	-	(208.8)	-	(208.8)
Derivatives not designated as hedge accounting	-	(90.7)	-	(90.7)
	-	(299.5)	-	(299.5)

	12.31.16
	Level 1	Level 2	Level 3	Total
Assets
Financial assets
Available for sale
Credit linked notes	187.4	-	-	187.4
Public securities	56.4	-	-	56.4
Stocks	379.5	-	-	379.5
Held for trading
Bank deposit certificates	-	48.4	-	48.4
Financial treasury bills	180.5	-	-	180.5
Investment funds	42.3	-	-	42.3
Other financial assets	-	-	-	-
Derivatives designed as hedge accounting	-	197.5	-	197.5
Derivatives not designated as hedge accounting	-	0.5	-	0.5
	846.1	246.4	-	1,092.5
Liabilities
Financial liabilities
Other financial liabilities
Derivatives designed as hedge accounting	-	(222.8)	-	(222.8)
Derivatives not designated as hedge accounting	-	(306.8)	-	(306.8)
	-	(529.6)	-	(529.6)

Schedule of comparison between book value and fair value of financial instruments

Except for the items presented below, the book value of all other financial instruments approximate fair value. The fair value of financial instruments presented below was based in prices observed in active markets, level 1 of the hierarchy for fair value measurement.

		12.31.17		12.31.16
	Maturity	Book value	Fair value	Book value	Fair value
BRF bonds
BRF SA BRFSBZ5	2022	(369.6)	(406.7)	(364.0)	(415.1)
BRF SA BRFSBZ4	2024	-	-	(2,424.1)	(2,404.4)
BRF SA BRFSBZ3	2023	(1,608.3)	(1,578.7)	(1,568.1)	(1,567.4)
BRF SA BRFSBZ7	2018	(503.8)	(502.4)	(502.9)	(475.9)
BRF SA BRFSBZ2	2022	(1,997.5)	(1,974.5)	(1,729.1)	(1,795.8)
BFF bonds
Sadia Overseas BRFSBZ7	2020	(292.2)	(299.9)	(287.2)	(308.7)
Sadia bonds
Sadia Overseas BRFSBZ6	2017	-	-	(370.0)	(376.7)
Bonds BRF - SHB
BRF SA BRFSBZ4	2024	(2,465.4)	(2,427.8)	-	-
Bonds BRF Gmbh
BRF SA BRFSBZ4	2026	(1,628.9)	(1,553.1)	(1,606.6)	(1,538.8)
Quickfood bonds
Quickfood	2022	(168.0)	(168.0)	(144.5)	(144.5)
Total		(9,033.7)	(8,911.1)	(8,996.5)	(9,027.3)

Schedule of quantitative and qualitative information

Quantitative and qualitative information used in preparing these analyzes are based on the position for the year ended December 31, 2017. Future results may differ significantly from those estimates amounts, if the reality becomes different from the assumptions used.

		3.3080	2.9772	2.4810	4.1350	4.9620
Parity - Brazilian Reais x U.S. Dollar		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	10% appreciation	25% appreciation	25% devaluation	50% devaluation
Designated as hedge accouting
Non-deliverable forward	Devaluation of R$	(1.3)	94.1	237.2	(239.9)	(478.4)
Options - currencies	Devaluation of R$	0.7	115.1	313.6	(277.9)	(608.7)
Export prepayments	Devaluation of R$	(300.8)	(231.9)	(128.5)	(473.1)	(645.4)
Bonds	Devaluation of R$	(343.1)	(254.2)	(120.9)	(565.3)	(787.4)
Swaps	Devaluation of R$	(157.8)	(117.0)	(55.9)	(259.8)	(361.7)
Exports (object)	Appreciation of R$	802.2	396.2	(240.0)	1,810.1	2,870.3
Cost (object)	Appreciation of R$	0.1	(2.3)	(5.6)	5.8	11.3
Not designated as hedge accouting
NDF - Purchase	Appreciation of R$	(24.1)	(288.7)	(685.7)	637.5	1,299.1
Futures purchase - B3	Appreciation of R$	(0.2)	(12.1)	(30.0)	29.6	59.3
Net effect		(24.3)	(300.8)	(715.8)	667.0	1,358.4
		3.9693	3.5724	2.9770	4.9616	5.9540
Parity - Brazilian Reais x Euro		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	10% appreciation	25% appreciation	25% devaluation	50% devaluation
Designated as hedge accouting
Non-deliverable forward	Devaluation of R$	(0.7)	5.3	14.2	(15.6)	(30.4)
Exports (object)	Appreciation of R$	0.7	(5.3)	(14.2)	15.6	30.4
Not designated as hedge accouting
NDF - Purchase EUR x US$	Devaluation of R$	33.1	(185.2)	(512.7)	578.9	1,124.7
NDF - Purchase	Devaluation of R$	(0.9)	(12.8)	(30.7)	28.8	58.6
Net effect		32.2	(198.0)	(543.4)	607.7	1,183.3
		4.4714	4.0243	3.3536	5.5893	6.7071
Parity - Brazilian Reais x GBP		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	10% appreciation	25% appreciation	25% devaluation	50% devaluation
Designated as hedge accouting
Non-deliverable forward	Devaluation of R$	(1.0)	10.1	26.9	(29.0)	(56.9)
Exports (object)	Appreciation of R$	1.0	(10.1)	(26.9)	29.0	56.9
Net effect		-	-	-	-	-
		143.85	129.47	107.89	179.81	215.78
Price parity CBOT -  Corn - US$/Ton		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	Decrease 10%	Decrease 25%	Increase 25%	Increase 50%
Designated as hedge accounting
Non-deliverable forward - Corn sale	Increase in the price of corn	1.0	3.6	7.6	(5.5)	(12.0)
Non-deliverable forward - Corn purchase	Decrease in the price of corn	(4.2)	(27.6)	(62.7)	54.3	112.8
Cost (object)	Decrease in the price of corn	3.1	23.9	55.1	(48.8)	(100.8)
Net effect		-	-	-	-	-
		127.11	114.40	95.33	158.89	190.66
Price parity CBOT -  Soybean meal - US$/Ton		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	Decrease 10%	Decrease 25%	Increase 25%	Increase 50%
Designated as hedge accounting
Non-deliverable forward - Soybeal meal purchase	Decrease in the price of soybean meal	(1.1)	(4.9)	(10.7)	8.6	18.3
Soybean meal options	Decrease in the price of soybean meal	(0.2)	(5.6)	(14.3)	6.2	20.8
Cost (object)	Increase in the price of soybean meal	1.3	10.5	25.1	(14.8)	(39.1)
Net effect		-	-	0.1	-	-
		353.38	318.04	265.04	441.73	530.07
Price parity CBOT -  Soybean - US$/Ton		Current	Scenario I	Scenario II	Scenario III	Scenario IV
Transaction/Instrument	Risk	Scenario	Decrease 10%	Decrease 25%	Increase 25%	Increase 50%
Designated as hedge accounting
Non-deliverable forward - Soybean purchase	Decrease in the price of soybean	(1.1)	(3.7)	(7.8)	5.7	12.4
Cost (object)	Increase in the price of soybean	1.1	3.7	7.8	(5.7)	(12.4)
Net effect		-	-	-	-	-

XML

5. SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

Segment Information Tables

Schedule of net sales for each operating segment

The net sales for each reportable operating segment are presented below:

		Restated
Net sales	12.31.17	12.31.16	12.31.15
Brazil
In-natura	3,489.9	3,109.0	2,997.9
Poultry	2,697.5	2,410.3	2,265.0
Pork and other	792.4	698.7	732.9
Processed	11,681.6	11,600.8	12,206.5
Other sales	17.1	98.3	51.1
	15,188.6	14,808.1	15,255.5
One Foods
In-natura	5,591.6	5,584.2	5,922.2
Poultry	5,557.2	5,542.1	5,886.8
Other	34.4	42.1	35.3
Processed	909.7	642.3	436.2
Other sales	195.5	-	-
	6,696.8	6,226.5	6,358.3
International
In-natura	5,531.7	6,547.6	5,738.2
Poultry	4,255.4	5,063.5	4,378.7
Pork and other	1,276.3	1,484.1	1,359.5
Processed	2,728.2	2,867.4	2,175.4
Other sales	237.2	221.4	1.5
	8,497.1	9,636.4	7,915.1
Southern Cone
In-natura	395.2	383.0	564.9
Poultry	195.8	230.2	290.3
Pork and other	199.4	152.8	274.6
Processed	1,408.8	1,348.0	1,271.1
Other sales	57.6	33.8	49.8
	1,861.6	1,764.8	1,885.8
Other segments
Ingredients	269.2	-	-
Other sales	956.1	1,297.1	782.0
	1,225.3	1,297.1	782.0
	33,469.4	33,732.9	32,196.6
		Restated
	12.31.17	12.31.16	12.31.15
Brazil	1,019.1	1,028.5	1,547.4
One Foods	8.3	348.6	1,148.0
International	345.6	525.6	1,426.3
Southern Cone	(80.6)	30.9	88.7
Other segments	54.7	21.3	31.1
Ingredients	52.1	-	-
Other sales	2.6	21.3	31.1
Sub total	1,347.1	1,954.8	4,241.5
Corporate	(610.9)	(139.6)	(13.1)
	736.2	1,815.2	4,228.4

Schedule of operating income for each operating segment

The goodwill and intangible assets with indefinite useful life (trademarks) arising from business combinations were allocated to the reportable operating segments, considering the generated economic benefits by such intangible assets, as presented below:

	Goodwill		Trademarks		Total
		Restated		Restated		Restated
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Brazil	1,151.5	1,151.5	982.5	982.5	2,134.0	2,134.0
One Foods	1,388.1	1,225.0	389.2	170.4	1,777.3	1,395.4
International	1,345.4	1,247.0	24.5	24.7	1,369.9	1,271.7
Southern Cone	307.2	720.0	253.7	135.6	560.9	855.6
	4,192.2	4,343.5	1,649.9	1,313.2	5,842.1	5,656.7

XML

6. BUSINESS COMBINATION AND ACQUSITION OF ENTITIES INTEREST (Tables)

12 Months Ended

Dec. 31, 2017

Qatar National Import and Export Co. ("QNIE") [Member]

Disclosure of detailed information about business combination [line items]

Schedule of fair value of the acquired assets and assumed liabilities

The fair value of net acquired assets for the allocation of the purchase price paid by Federal Foods Qatar Ltd is as follows:

	Fair value at the acquisition date
Inventories	24.8
Intangible	182.8
Customer list	155.4
Non compete agreement	27.4
Net assets acquired	207.6
Fair value of consideration paid	589.1
Goodwill	381.5

Golden Foods Siam ("GFS") [Member]

Disclosure of detailed information about business combination [line items]

Schedule of fair value of the acquired assets and assumed liabilities

The fair value of the acquired assets and assumed liabilities to determine the allocation of the consideration paid was as follows:
 

	Fair value at the acquisition date
Cash and cash equivalents	64.1
Trade accounts receivable, net	153.8
Inventories	178.3
Biological assets	24.0
Property, plant and equipment	332.3
Intangible assets	142.2
Software	5.3
Customer relationship	117.0
Supplier relationship	2.3
Trademarks	5.7
Import quotas	11.9
Other assets	17.1
	911.8
Social and labor obligations	11.5
Trade accounts payable	93.2
Loans and financing	58.3
Other accounts payable	39.6
	202.6
Net assets acquired	709.2
Non-controlling interest	(128.7)
Fair value of consideration paid	1,466.8
Goodwill	886.3

Universal Meats (UK) Limited ("Universal") [Member]

Disclosure of detailed information about business combination [line items]

Schedule of fair value of the acquired assets and assumed liabilities

The fair value of the acquired assets and assumed liabilities for the preliminary allocation of the purchase price paid is as follows:
 

	Fair value at the acquisition date
Cash and cash equivalents	22.5
Trade accounts receivable, net	108.6
Inventories	64.3
Other assets	6.9
Property, plant and equipment	0.4
Intangible	104.5
Customer relationship	95.6
Import quotas	8.9
	307.2
Trade accounts payable	30.6
Loans and financing	20.7
Tax payable	3.2
Liabilities with related parties	5.7
Other liabilities	13.1
Deferred taxes	17.4
	90.7
Net asset acquired	216.5
Fair value of consideration paid	280.8
Preliminary goodwill	64.3

Schedule of fair value of the consideration paid

The fair value of the consideration paid was determined as follows:

Cash and cash equivalent	185.7
Contingent consideration at fair value	95.1
	280.8

Al Khan Foodstuff LLC ("AKF") [Member]

Disclosure of detailed information about business combination [line items]

Schedule of fair value of the acquired assets and assumed liabilities

The fair value of assets acquired and liabilities assumed to determining the price paid on the step acquisition of AKF is demonstrated below:

	Fair value at the acquisition date
Cash and cash equivalents	15.0
Trade accounts receivable, net	72.2
Inventories	41.2
Property, plant and equipment, net	1.1
Intangible	76.8
Software	0.2
Customer relationship	76.6
Other assets	2.4
	208.7
Short-term debt	65.4
Trade accounts payable	13.3
Payroll and related charges	1.1
Tax payable	2.8
Deferred taxes	19.1
Other liabilities	7.0
	108.7
Net assets acquired	100.0
Non-controlling interest	(0.4)
Fair value of consideration paid	227.1
Goodwill	127.5

Schedule of fair value of the consideration paid

The total consideration paid was determined as follows:

Cash - consideration paid for the acquisition of the control	110.3
Carrying amount of prior equity interest of 40%	58.0
Gain on the remeasurement of the prior equity interest (40%) at fair value	58.8
Fair value of consideration paid at the acquisition date	227.1

FFM Further Processing SDN BHD ("FFP") [Member]

Disclosure of detailed information about business combination [line items]

Schedule of fair value of the acquired assets and assumed liabilities

The fair value of acquired assets and assumed liabilities for the allocation of the purchase price paid is demonstrated below:
 

	Fair value at the acquisition date
Cash and cash equivalentes	39.9
Inventories	3.5
Other assets	4.4
Property, plant and equipment	27.0
	74.8
Trade accounts payable	1.0
Other liabilities	2.6
	3.6
Net assets acquired	71.2
Non-controlling interest	(21.3)
Fair value of consideration transferred	49.0
Gain on bargain purchase	0.9

XML

7. CASH AND CASH EQUIVALENTS (Tables)

12 Months Ended

Dec. 31, 2017

Cash And Cash Equivalents Tables

Schedule of cash and cash equivalents

	Average rate (p.a.)
		12.31.17	12.31.16
Cash and bank accounts
U.S. Dollar	-	525.1	680.1
Brazilian Reais	-	135.0	46.4
Euro	-	181.8	274.3
Other currencies	-	828.3	729.6
		1,670.2	1,730.4
Cash equivalents
In Brazilian Reais
Investment funds	1.87%	5.3	26.9
Savings account	2.76%	4.0	4.8
Bank deposit certificates	6.96%	3,527.8	3,830.2
		3,537.1	3,861.9
In U.S. Dollar
Term deposit	2.95%	66.2	327.0
Overnight	0.50%	645.6	421.5
Other currencies
Term deposit	1.78%	91.7	16.1
		803.5	764.6
		6,010.8	6,356.9

XML

8. MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2017

Marketable Securities Tables

Schedule of marketable securities

			Average interest rate (p.a.)
	WATM (1)	Currency		12.31.17	12.31.16
Available for sale
Credit linked note (a)	5.48	US$	3.85%	15.4	187.4
Public securities (b)	-	US$	-	-	56.4
Stocks (c)	-	R$ and HKD	-	328.8	379.5
				344.2	623.3
Held for trading
Bank deposit certificates ("CDB") (d)	-	R$	-	-	48.4
Financial treasury bills (e)	1.82	R$	6.90%	166.3	180.5
Investment funds (f)	1.00	ARS	25.00%	29.7	42.3
				196.0	271.2
Held to maturity
Sovereign bonds and others (e)	4.34	AOA and R$	3.82% to 6.90%	257.0	255.5
				797.2	1,150.0
Current				228.4	622.3
Non-current (2)				568.8	527.7

⁽¹⁾ Weighted average maturity in years.

⁽²⁾ Maturity within up to July 26, 2018.

(a) The credit linked note is a structured operation with a first-class financial institution that bears periodic interest (LIBOR + spread) and corresponds to a credit note that contemplates the Company’s risk.

(b) Brazilian foreign debt securities are denominated in U.S. Dollars and remunerated at pre and post-fixed rates.

(c) The stock balance comprises the market value of 26,000,000 stocks from Minerva (ticker BEEF3 and market value of R$10.65 to each stock on December 31, 2017) and 77,583,000 stocks of Cofco Meat (ticker 1610 and market value of HKD1.58 to each stock on December 31, 2017).

(d) Bank Deposit Certificate (“CDB”) investments are denominated in Brazilian Reais and remunerated at rates varying of the Interbank Deposit Certificate (“CDI”).

(e) Comprised of Financial Treasury Bills (“LFT”) remunerated at the rate of the Special System for Settlement and Custody (“SELIC”) and securities of the Angola Government denominated in Kwanzas.

(f) The fund in foreign currency is basically represented of public and private securities.

XML

9. TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2017

Trade Accounts Receivable Net And Other Receivables Tables

Schedule of trade accounts receivable, net and notes receivable

	12.31.17	12.31.16
Trade accounts receivable, net
Domestic customers	1,622.8	1,308.1
Domestic related parties	2.6	1.1
Foreign customers	2,754.0	2,144.7
Foreign related parties	27.2	64.7
	4,406.6	3,518.6
( - ) Adjustment to present value	(13.7)	(16.3)
( - ) Allowance for doubtful accounts	(467.6)	(406.5)
	3,925.3	3,095.8
Current	3,919.0	3,085.1
Non-current	6.3	10.7
Notes receivable	260.6	367.9
( - ) Adjustment to present value	(0.3)	(0.2)
( - ) Allowance for doubtful accounts	(30.8)	(32.2)
	229.5	335.5
Current	113.1	149.0
Non-current (1)	116.4	186.5

⁽¹⁾ Weighted average maturity of 3.22 years.

Schedule of allowance for doubtful accounts

Of the foreign related parties balance, is linked to Agribusiness Receivable Certificate ("CRA") operation, as disclosed in note 19.2.

12.31.17
Operation	Date	Maturity	Average rate	Principal value	Updated Value
CRA 2018 - 1th Issue	09.29.2015	10.01.2018	96.9% CDI	1,000.0	997.8
CRA 2019 - 2sd Issue	04.19.2016	04.19.2019	96.5% CDI	1,000.0	1,009.4
CRA 2020 - 3th Issue	12.16.2016	12.16.2020	96.0% CDI	780.0	801.0
CRA 2023 - 3th Issue	12.16.2016	12.18.2023	IPCA + 5.90%	720.0	763.5
				3,500.0	3,571.7

Schedule of Agribusiness Receivable Certificate

The rollforward of allowance for doubtful accounts is presented below:

	12.31.17	12.31.16
Beginning balance	(406.5)	(432.0)
Additions	(187.3)	(199.2)
Business combination (1)	(11.6)	(10.6)
Reversals	112.0	148.6
Write-offs	30.8	30.7
Exchange rate variation	(5.0)	56.0
Ending balance	(467.6)	(406.5)

Schedule of aging of trade accounts receivable

	12.31.17	12.31.16
Current	3,272.1	2,389.9
Overdue
01 to 60 days	364.3	393.8
61 to 90 days	98.9	42.0
91 to 120 days	33.7	25.3
121 to 180 days	74.6	72.3
181 to 360 days	170.8	157.2
More than 361 days	392.2	438.1
( - ) Adjustment to present value	(13.7)	(16.3)
( - ) Allowance for doubtful accounts	(467.6)	(406.5)
	3,925.3	3,095.8

XML

10. INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2017

Inventories Tables

Schedule of inventories

	12.31.17	12.31.16
Finished goods	3,166.4	3,207.9
Work in process	156.7	172.8
Raw materials	1,220.1	900.8
Packaging materials	87.2	76.8
Secondary materials	324.9	265.3
Warehouse	247.4	205.7
Imports in transit	103.9	113.0
Other	11.4	6.7
(-) Provision for adjustment to realizable value	(253.7)	(93.5)
(-) Provision for deterioration	(66.4)	(26.2)
(-) Provision for obsolescense	(6.9)	(7.7)
(-) Adjustment to present value	(42.8)	(30.1)
	4,948.2	4,791.6

Schedule of changes in the provision for obsolescence

Such amounts include the additions and reversals of inventory provisions, except for the effects recorded as other operating results, presented in the table below:

	Provision for adjustment to realizable value		Provision for deterioration		Provision for obsolescence		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	(93.5)	(20.0)	(26.2)	(49.6)	(7.7)	(12.2)	(127.5)	(81.8)
Additions (1)	(240.7)	(113.9)	(62.4)	(19.0)	(2.4)	(1.5)	(305.5)	(134.4)
Reversals	80.8	15.3	-	-	-	-	80.8	15.3
Write-offs	-	-	22.3	44.6	2.2	3.8	24.5	48.4
Business combination	-	-	-	-	0.8	-	0.8	-
Exchange rate variation	(0.3)	25.1	(0.1)	(2.2)	0.2	2.2	(0.2)	25.1
Ending balance	(253.7)	(93.5)	(66.4)	(26.2)	(6.9)	(7.7)	(327.1)	(127.4)

⁽¹⁾ Manly amount is effect from Weak Flesh Operation (note 1.5).

XML

11. BIOLOGICAL ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

Biological Assets Tables

Schedule of biological assets

The balance of biological assets is segregated in current and non-current assets are presented below:

	12.31.17	12.31.16
Live animals	1,510.5	1,644.9
Total current	1,510.5	1,644.9
Live animals	639.8	647.3
Forests	263.9	270.0
Total non-current	903.7	917.3
	2,414.2	2,562.3

Schedule of reconciliation of biological assets

The rollforward of biological assets for the year is presented below:

	Current						Non-current
	Live animals				Total		Live animals				Forests		Total
	Poultry		Pork				Poultry		Pork
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	770.8	595.5	874.3	734.4	1,644.9	1,329.9	349.0	294.9	298.3	236.0	270.0	230.2	917.3	761.0
Additions/Transfer	547.9	246.4	1,692.0	1,686.0	2,240.0	1,932.4	84.3	45.0	203.8	191.2	35.3	37.5	323.4	273.7
Business combination (2)	103.0	-	-	17.9	103.0	17.9	-	24.0	-	5.8	-	-	-	29.7
Fair value variation (1)	1,290.4	1,664.7	88.7	112.9	1,379.1	1,777.6	(31.0)	66.6	(113.4)	(63.0)	7.4	42.4	(137.0)	46.0
Harvest	-	-	-	-	-	-	-	-	-	-	(41.2)	(31.0)	(41.2)	(31.0)
Write-off	-	-	-	-	-	-	(8.4)	-	(0.2)	-	(3.7)	(8.8)	(12.3)	(8.8)
Transfer between current  and non-current	69.9	72.3	78.7	70.7	148.6	143.0	(69.9)	(72.3)	(72.5)	(70.7)	-	-	(142.4)	(143.0)
Transfer of the held for sale	-	-	-	-	-	-	-	(4.1)	-	-	(3.9)	(0.3)	(3.9)	(4.4)
Transfer to inventories	(2,076.2)	(1,804.8)	(1,921.2)	(1,745.1)	(3,997.3)	(3,550.0)	-	-	-	-	-	-	-	-
Exchange variation	(5.9)	(3.3)	(1.9)	(2.6)	(7.8)	(5.9)	1.8	(5.1)	(2.1)	(1.0)	-	-	(0.3)	(5.9)
Ending balance	699.9	770.8	810.6	874.3	1,510.5	1,644.9	325.8	349.0	313.9	298.3	263.9	270.0	903.6	917.3

⁽¹⁾ The fair value variation of biological assets includes depreciation of breeding stock in the amount of R$758,7 (R$680,9 as of December 31, 2016).

⁽²⁾ Balance arising from the business combination with Banvit (note 6.1.3).

Schedule of live animals information

The quantities and balances per live animals assets are presented below:

	12.31.17		12.31.16
	Quantity (thousand of heads)	Value	Quantity (thousand of heads)	Value
Consumable biological assets
Immature poultry	1,99,337	699.9	2,02,454	770.7
Immature pork	3,987	810.6	3,788	874.2
Total current	2,03,324	1,510.5	2,06,242	1,644.9
Production biological assets
Immature poultry	6,693	117.2	6,735	119.9
Mature poultry	11,113	208.6	11,670	229.2
Immature pork	229	67.8	195	58.9
Mature pork	445	246.2	427	239.4
Total non-current	18,480	639.8	19,027	647.3
	2,21,804	2,150.3	2,25,269	2,292.3

XML

12. RECOVERABLE AND INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Recoverable And Income And Social Contribution Taxes Tables

Schedule of recoverable taxes

Recoverable taxes	12.31.17	12.31.16
ICMS ("State VAT")	1,681.9	1,575.1
PIS and COFINS ("Federal Taxes to Social Fund Programs")	430.2	331.6
IPI ("Federal VAT") (1)	791.2	201.3
INSS ("Brazilian Social Security")	280.4	280.4
Other	123.9	95.9
(-) Provision for losses	(160.5)	(155.6)
	3,147.1	2,328.7
Current	728.9	846.1
Non-current	2,418.2	1,482.6
Recoverable income and social contribution tax
Income and social contribution tax (IR/CS)	528.3	433.7
(-) Provision for losses	(9.0)	(9.0)
	519.3	424.7
Current	499.3	388.7
Non-current	20.0	36.0

⁽¹⁾ Main variation refers to adhesion to the tax amnesty program, as disclosed in note 1.6.

Schedule of rollforward of provision for losses

The rollforward of the allowance for losses is presented below:

	ICMS ("State VAT")		PIS and COFINS ("Federal Taxes to Social Fund Programs")		Income and social contribution tax		IPI ("Federal VAT")		Other		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	(114.3)	(113.9)	(19.9)	(25.1)	(9.0)	(9.0)	(14.7)	(14.7)	(6.7)	(8.7)	(164.6)	(171.4)
Additions	(37.7)	(28.2)	-	(0.2)	-	-	-	-	(2.3)	(0.3)	(40.0)	(28.7)
Write-offs	29.1	27.8	0.2	5.4	-	-	1.2	-	4.0	0.2	34.5	33.4
Exchange rate variation	-	-	-	-	-	-	-	-	0.6	2.1	0.6	2.1
Ending balance	(122.9)	(114.3)	(19.7)	(19.9)	(9.0)	(9.0)	(13.5)	(14.7)	(4.4)	(6.7)	(169.5)	(164.6)

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income And Social Contribution Taxes

Schedule of deferred income and social contribution taxes

	12.31.17	12.31.16
Assets
Tax loss carryforwards (corporate income tax)	1,438.9	1,317.3
Negative calculation basis (social contribution tax)	401.4	376.6
Temporary differences
Provisions for tax, civil and labor risks	398.0	268.2
Suspended collection taxes	12.3	22.1
Allowance for doubtful accounts	116.1	107.2
Provision for property, plant and equipment losses	6.3	3.2
Provision for losses on tax credits	53.2	51.3
Provision for other obligations	92.8	67.5
Provision for inventory losses	98.6	17.6
Employees' benefits plan	127.4	112.2
Unrealized losses on derivatives financial instruments	80.4	133.3
Unrealized losses on inventories	4.4	2.4
Provision for losses - notes receivables	13.7	13.2
Business combination - Sadia (1)	206.8	329.0
Other temporary differences	96.7	106.5
	3,147.0	2,927.6
Liabilities
Temporary differences
Unrealized gains on fair value	(38.5)	(78.3)
Difference between tax basis and accounting basis of goodwill amortization	(301.8)	(254.3)
Difference between tax depreciation rate and accounting depreciation rate (useful life)	(694.2)	(694.5)
Business combination - Sadia (1)	(727.1)	(703.0)
Business combination - AKF	(17.8)	(19.1)
Business combination - Dánica and Avex	(4.5)	(6.7)
Business combination - Invicta	(30.9)	(39.8)
Business combination - AFC	-	(34.4)
Business combination - Federal Foods	-	(7.6)
Business combination - other companies (2)	(35.8)	(58.2)
Other - exchange rate variation	(54.9)	(48.6)
Other temporary differences	(27.4)	(36.2)
	(1,932.9)	(1,980.7)
Total deferred tax	1,214.1	947.0
Total Assets	1,369.4	1,103.1
Total Liabilities	(155.3)	(156.2)
	1,214.1	947.0

⁽¹⁾ The deferred tax asset on the business combination with Sadia is mainly computed on the difference between the goodwill amortization tax basis and goodwill accounting basis identified in the purchase price allocation. Deferred tax liability on business combination with Sadia is substantially represented by the fair value of property, plant and equipment, trademarks and contingent liabilities.

⁽²⁾ Deferred tax liabilities related to the business combinations with Quickfood (trademarks, customer relationship, Fair value of property, plant and equipment) and AFC (customer relationship).

Schedule of rollforward deferred tax

The roll-forward of deferred tax is set forth below:

	12.31.17	12.31.16
Beginning balance	947.0	1,067.7
Deferred income and social contribution taxes recognized in the statement of income	230.0	104.1
Deferred income and social contribution taxes writte-off for fiscal loss and negative calculation basis - PERT	(56.9)	-
Deferred income and social contribution taxes recognized in other comprehensive income	15.2	(261.6)
Deferred income and social contribution taxes not recognized in the statement of income - (Dropdown SHB)	-	-
Business combination	(15.9)	(20.8)
Deferred income and social contribution taxes on disposals of goodwill from BRF Gmbh and Invicta	44.4	-
Exchange rate variation over deferred income and social contribution taxes related to business combination	(7.2)	44.0
Other	57.5	13.6
Ending balance	1,214.1	947.0

Schedule of deferred tax

Based on this estimate, Management believes that it is more likely than not that the deferred tax will be realized, as shown below:

2018	27.9
2019	74.8
2020	137.8
2021	155.3
2022	184.5
2023 to 2025	714.4
2026 onwards	545.6
	1,840.3

Schedule of income and social contribution taxes reconciliation

	12.31.17	12.31.16	12.31.15
(Loss) Income before income and social contribution taxes	(1,345.5)	(317.5)	2,558.2
Nominal tax rate	34%	34%	34%
Credit (expense) at nominal rate	457.5	107.9	(869.8)
Reconciling itens
Equity interest in income (loss) of subsidiaries, associates and joint venture	7.6	10.0	(35.3)
Exchange rate variation on foreign investments	71.7	(224.6)	460.2
Difference of tax rates on results of foreign subsidiaries	87.0	(144.9)	586.9
Deferred income tax not constituted abroad	(363.8)	-	-
Interest on shareholders' equity	-	174.5	305.7
Stock options	(7.3)	(14.8)	(20.0)
Transfer price	(15.8)	(1.5)	(8.4)
Profit sharing	-	(0.8)	(10.5)
Penalties	(6.8)	(7.9)	(4.2)
Change rate/Impairment - Argentina subsidiaries	(117.8)	-	-
Investment grant	49.1	41.7	44.8
Special Regime for the Reintegration of Tax Values for Exporting Companies (Reintegra)	8.4	1.0	-
Other permanent differences	76.8	9.5	(59.8)
	246.6	(49.9)	389.6
Current income tax	16.6	(154.0)	(17.1)
Deferred income tax	230.0	104.1	406.6

Schedule of current and deferred income tax from foreign subsidiaries

The taxable income, current and deferred income tax from foreign subsidiaries is presented below:

	12.31.17	12.31.16
Taxable income (loss) from foreign subsidiaries	(432.3)	(1,289.8)
Current income tax credit (expense) from foreign subsidiaries	(67.1)	(58.2)
Deferred income tax from foreign subsidiaries	(18.0)	348.1

XML

14. JUDICIAL DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2017

Judicial Deposits Tables

Schedule of detailed information about judicial deposits

The rollforward of the judicial deposits is presented below:

	Tax		Labor		Civil, commercial and other		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	312.5	376.7	377.4	311.3	42.7	44.1	732.6	732.1
Additions	23.4	82.7	188.3	161.6	7.8	5.5	219.5	249.8
Business combination	-	0.2	-	-	-	-	-	0.2
Reversals	(52.5)	(4.8)	(78.7)	(20.7)	(4.4)	(3.9)	(135.6)	(29.4)
Write-offs	(9.0)	(184.4)	(136.5)	(97.8)	(10.5)	(6.1)	(156.0)	(288.3)
Price index update	18.2	42.1	11.2	25.6	0.8	3.1	30.2	70.8
Exchange rate variation	(0.1)	-	(1.7)	(2.6)	-	-	(1.8)	(2.6)
Ending balance	292.5	312.5	360.0	377.4	36.4	42.7	688.9	732.6

XML

15. RESTRICTED CASH (Tables)

12 Months Ended

Dec. 31, 2017

Restricted Cash Tables

Schedule of detailed information about restricted cash

			Average interest rate (p.a.)
	Maturity (1)	Currency		12.31.17	12.31.16
Bank deposit certificates (2)	3.55	R$	8.05%	326.4	384.4
National treasury certificates (3)	2.29	R$	11.47%	190.2	171.4
Bank deposit (4)	-	US$	-	19.0	90.1
				535.6	645.9
Current				127.8	218.3
Non-current				407.8	427.6

⁽¹⁾ Weighted average maturity in years.

⁽²⁾ The deposit was pledged as collateral in the disposal of the dairy segment to Groupe Lactalis (“Parmalat”) with maturity on 2021.

⁽³⁾ The national treasury certificates, which mature on 2020, are pledged as collateral for the loan obtained through the Special Program Asset Restructuring (“PESA”) (note 19).

⁽⁴⁾ Deposit linked to operations in the international market.

XML

16. INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Investments Tables

Schedule of detailed information about investment in associates and joint ventures

On December 31, 2017, these associates, affiliates and joint ventures do not have any restriction to transfer dividends or repay their loans or advances to the Company.

	12.31.17	12.31.16
Investment in affiliates and joint venture	54.1	51.7
Goodwill SATS BRF	6.1	5.6
	60.2	57.3
Other investments	8.0	1.4
	68.2	58.7

Schedule of financial information in associate

	BRF Pet	PP-BIO		PR-SAD		UP!		Total
	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Current assets	-	-	-	-	-	49.4	51.0
Non-current assets	-	6.7	5.9	15.9	13.1	0.2	0.2
Current liabilities	-	-	-	-	-	(49.5)	(51.2)
Shareholder's equity	-	6.7	5.9	15.9	13.1	0.1	-
% of participation	0.00%	33.33%	33.33%	33.33%	33.33%	50.00%	50.00%
Book value of investment	-	2.2	2.0	5.3	4.4	-	-	7.5	6.4
Dividends declared	-	-	-	-	-	25.6	26.9	25.6	26.9
	BRF Pet (1)	PP-BIO		PR-SAD		UP!
	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Net revenues	24.8	-	-	-	-	174.9	191.3
Net income (loss)	4.7	-	-	-	-	51.1	53.8
Equity pick-up	2.3	-	-	-	-	25.6	26.9	25.6	29.2

⁽¹⁾ On March 18, 2016, the Company acquired control and total shares, being treated as wholly-owned subsidiary from this date and on June 21, 2017 the name and corporate purpose was changed of K&S Alimentos S.A. to BRF Pet S.A.

XML

17. PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2017

Property Plant And Equipment Net Tables

Schedule of detailed information about property, plant and equipment

Property, plant and equipment rollforward is presented below:

	Weighted average depreciation rate (p.a.)	12.31.16	Additions	Business combinations (2)	Disposals	Transfers (1)	Exchange rate variation	12.31.17
Cost
Land	-	575.9	6.2	123.5	(2.0)	6.1	(3.5)	706.2
Buildings and improvements	-	5,648.6	60.2	258.8	(36.7)	183.6	(11.8)	6,102.8
Machinery and equipment	-	7,994.1	57.9	389.1	(175.4)	569.8	45.7	8,881.2
Facilities	-	2,047.9	14.8	-	(25.8)	137.3	0.8	2,175.0
Furniture	-	163.5	2.1	16.1	(4.2)	5.8	(11.8)	171.5
Vehicles	-	27.3	0.3	4.8	(8.9)	4.8	0.3	28.6
Construction in progress	-	886.0	693.6	13.6	(5.6)	(1,091.0)	(42.7)	453.9
Advances to suppliers	-	16.1	15.8	-	-	(17.6)	(0.6)	13.7
		17,359.4	850.9	805.9	(258.6)	(201.2)	(23.6)	18,532.9
Depreciation
Buildings and improvements	3.02%	(1,694.4)	(184.0)	(11.4)	17.0	3.7	(3.4)	(1,872.4)
Machinery and equipment	5.93%	(3,193.9)	(567.2)	(21.0)	107.4	3.5	14.7	(3,656.5)
Facilities	3.78%	(646.3)	(91.3)	-	10.8	0.5	1.8	(724.5)
Furniture	8.05%	(66.5)	(13.4)	-	3.1	(0.9)	-	(77.7)
Vehicles	19.99%	(12.1)	(3.2)	(2.8)	7.2	(1.3)	1.0	(11.2)
		(5,613.2)	(859.1)	(35.2)	145.5	5.5	14.1	(6,342.3)
		11,746.2	(8.2)	770.7	(113.1)	(195.7)	(9.5)	12,190.6

⁽¹⁾ Refers to the transfer of R$146.3 to intangible assets, R$35.3 to biological assets and R$13.9 to held for sale.

⁽²⁾ Balance arising from business combination with FFM Further in the amount of R$26.4, Banvit Bandirma Vitaminli of R$547.7, Eclipse of R$145.3 and Calchaquí of R$51.3.

	Weighted average depreciation rate (p.a.)	12.31.15	Additions	Business combinations (2)	Disposals	Reversals	Transfers (1)	Exchange rate variation	12.31.16
Cost
Land	-	584.7	0.5	33.2	(37.5)	-	12.4	(17.4)	575.9
Buildings and improvements	-	5,437.9	18.7	175.3	(127.3)	-	285.3	(141.3)	5,648.6
Machinery and equipment	-	7,027.1	142.2	304.9	(182.9)	-	864.8	(162.0)	7,994.1
Facilities	-	1,854.5	1.9	53.2	(13.2)	-	210.6	(59.1)	2,047.9
Furniture	-	137.9	3.1	12.6	(15.4)	-	14.9	10.4	163.5
Vehicles	-	20.3	0.1	10.7	(5.0)	-	2.6	(1.4)	27.3
Construction in progress	-	789.8	1,517.0	4.7	-	-	(1,376.3)	(49.2)	886.0
Advances to suppliers	-	18.8	40.4	0.2	-	-	(43.2)	(0.1)	16.1
		15,871.0	1,723.9	594.8	(381.3)	-	(28.9)	(420.1)	17,359.4
Depreciation
Buildings and improvements	3.03%	(1,525.9)	(163.8)	(76.0)	35.3	-	6.4	29.6	(1,694.4)
Machinery and equipment	5.89%	(2,786.0)	(464.0)	(155.6)	128.7	-	0.4	82.6	(3,193.9)
Facilities	3.79%	(549.9)	(85.1)	(29.3)	6.9	-	-	11.1	(646.3)
Furniture	8.02%	(64.7)	(11.8)	(8.3)	9.7	-	0.1	8.5	(66.5)
Vehicles	20.06%	(9.0)	(2.7)	(8.6)	4.4	-	2.5	1.3	(12.1)
		(4,935.5)	(727.4)	(277.8)	185.0	-	9.4	133.1	(5,613.2)
Provision for losses		(19.8)	(17.2)	-	-	37.0	-	-	-
		10,915.8	979.3	317.0	(196.3)	37.0	(19.5)	(287.0)	11,746.2

⁽¹⁾ Refers to the transfer of R$53.3 to intangible assets, R$37.5 to biological assets and R$28.3 to held for sale.

Schedule of total amount of fully depreciated items still operating

The Company has fully depreciated items that are still operating, which are set forth below:

	12.31.17	12.31.16
Cost
Buildings and improvements	138.2	122.2
Machinery and equipment	700.0	674.3
Facilities	74.0	74.4
Furniture	22.7	20.1
Vehicles	5.3	5.0
Others	60.0	49.5
	1,000.2	945.5

Schedule of book value of the collateral property, plant and equipment

The property, plant and equipment items that are pledged as collateral for transactions of different natures are presented below:

		12.31.17	12.31.16
	Type of collateral	Book value of the collateral	Book value of the collateral
Land	Financial/Tax	330.0	258.9
Buildings and improvements	Financial/Tax	1,290.4	1,253.6
Machinery and equipment	Financial/Labor/Tax/Civil	2,318.7	2,129.4
Facilities	Financial/Tax	540.9	523.3
Furniture	Financial/Tax	21.9	23.6
Vehicles	Financial/Tax	1.5	1.0
Other	Financial/Tax	0.4	-
		4,503.8	4,189.8

XML

18. INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets Tables

Schedule of changes in intangible assets and goodwill

The intangible assets rollforward is set forth below:

	Weighted average amortization rate (p.a.)	12.31.16	Additions	Disposals	Business combination	Transfers	Exchange rate variation	12.31.17
Cost
Non-compete agreement	-	51.0	11.5	-	0.5	-	(1.0)	62.0
Goodwill	-	4,343.5	-	-	(203.7)	-	52.4	4,192.2
AKF	-	129.5	-	-	(2.1)	-	4.1	131.5
Alimentos Calchaquí	-	342.0	-	-	(152.3)	-	(31.8)	157.9
Ava	-	49.4	-	-	-	-	-	49.4
Avex	-	18.8	-	-	-	-	(2.7)	16.1
Banvit Bandirma Vitaminli	-	-	-	-	203.8	-	(10.0)	193.8
BRF AFC	-	162.7	-	-	(33.4)	-	2.6	131.9
BRF Holland B.V.	-	22.5	-	-	-	-	3.5	26.0
BRF Invicta	-	119.0	-	-	-	-	12.9	131.9
Dánica	-	4.8	-	-	-	-	(0.7)	4.1
Eclipse Holding Cooperatief	-	209.9	-	-	(202.1)	-	(6.4)	1.4
Eleva Alimentos	-	808.1	-	-	-	-	-	808.1
Federal Foods LLC	-	70.5	-	-	(7.3)	-	0.7	63.9
Federal Foods Qatar L.L.C	-	308.4	-	-	-	-	4.8	313.2
GFS Group	-	684.5	-	-	-	-	87.1	771.6
GQFE - Golden Quality Foods Europe	-	2.4	-	-	-	-	0.4	2.8
Incubatório Paraíso	-	0.7	-	-	-	-	-	0.7
Invicta Food Group	-	0.6	-	-	-	-	0.1	0.7
Paraíso Agroindustrial	-	16.8	-	-	-	-	-	16.8
Perdigão Mato Grosso	-	7.6	-	-	-	-	-	7.6
Quickfood	-	113.8	-	-	-	-	(16.7)	97.1
Sadia	-	1,214.0	-	-	-	-	-	1,214.0
Universal Meats Ltd.	-	57.6	-	-	(10.2)	-	4.6	52.0
Import quotas	-	58.2	-	-	42.2	-	11.4	111.8
Outgrowers relationship	-	14.7	0.3	-	-	-	-	15.0
Trademarks	-	1,313.2	-	-	386.9	-	(50.2)	1,649.9
Patents	-	6.9	-	-	-	-	(0.1)	6.8
Customer relationship	-	815.2	-	-	403.5	10.6	(8.5)	1,220.8
Supplier relationship	-	14.6	-	(2.0)	-	(10.6)	0.1	2.1
Software	-	504.3	40.3	(176.9)	2.7	146.3	(0.4)	516.3
		7,121.6	52.1	(178.9)	632.1	146.3	3.7	7,776.9
Amortization
Non-compete agreement	27.59%	(7.6)	(16.1)	-	-	-	0.3	(23.4)
Import quotas	73.63%	(21.7)	(63.5)	-	-	-	(7.9)	(93.1)
Outgrowers relationship	13.15%	(7.7)	(1.9)	-	-	-	-	(9.6)
Patents	27.42%	(3.9)	(1.1)	-	-	-	0.1	(4.9)
Customer relationship	7.59%	(81.3)	(72.2)	-	0.2	-	(1.2)	(154.5)
Supplier relationship	5.00%	(2.0)	(0.1)	2.0	-	-	-	(0.1)
Software	19.93%	(324.8)	(145.0)	175.5	-	-	0.6	(293.7)
		(449.0)	(299.9)	177.5	0.2	-	(8.1)	(579.3)
		6,672.6	(247.8)	(1.4)	632.3	146.3	(4.4)	7,197.6

	Weighted average amortization rate (p.a.)	12.31.15	Additions	Disposals	Business combination	Transfers	Exchange rate variation	12.31.16
Cost
Non-compete agreement	-	15.6	18.6	(0.3)	-	27.4	(10.3)	51.0
Goodwill	-	2,778.1	-	-	2,557.9	(432.1)	(560.4)	4,343.5
AKF	-	-	-	-	136.5	11.0	(18.0)	129.5
Alimentos Calchaquí	-	-	-	-	397.8	-	(55.8)	342.0
Ava	-	49.4	-	-	-	-	-	49.4
Avex	-	27.6	-	-	-	-	(8.8)	18.8
BRF AFC	-	196.1	-	-	-	-	(33.4)	162.7
BRF Holland B.V.	-	27.8	-	-	-	-	(5.3)	22.5
BRF Invicta	-	170.7	-	-	-	-	(51.7)	119.0
Dánica	-	7.0	-	-	-	-	(2.2)	4.8
Eclipse Holding Cooperatief	-	-	-	-	230.5	0.3	(20.9)	209.9
Eleva Alimentos	-	808.1	-	-	-	-	-	808.1
Federal Foods LLC	-	84.4	-	-	-	-	(13.9)	70.5
Federal Foods Qatar L.L.C	-	-	-	-	564.2	(182.9)	(72.9)	308.4
GFS Group	-	-	-	-	1,079.4	(199.1)	(195.8)	684.5
GQFE - Golden Quality Foods Europe	-	-	-	-	3.1	-	(0.7)	2.4
Incubatório Paraíso	-	0.7	-	-	-	-	-	0.7
Invicta Food Group	-	0.9	-	-	-	-	(0.3)	0.6
Paraíso Agroindustrial	-	16.8	-	-	-	-	-	16.8
Perdigão Mato Grosso	-	7.6	-	-	-	-	-	7.6
Quickfood	-	167.0	-	-	-	-	(53.2)	113.8
Sadia	-	1,214.0	-	-	-	-	-	1,214.0
Universal Meats Ltd.	-	-	-	-	146.4	(61.4)	(27.4)	57.6
Import quotas	-	62.3	-	-	-	17.5	(21.6)	58.2
Outgrowers relationship	-	14.2	0.5	-	-	-	-	14.7
Trademarks	-	1,372.0	-	-	-	5.9	(64.7)	1,313.2
Patents	-	4.8	2.4	-	0.6	-	(0.9)	6.9
Customer relationship	-	620.8	-	-	-	370.6	(176.2)	815.2
Supplier relationship	-	9.7	-	(6.5)	-	16.2	(4.8)	14.6
Software	-	462.9	41.2	(43.3)	5.7	53.5	(15.7)	504.3
		5,340.4	62.7	(50.1)	2,564.2	59.0	(854.6)	7,121.6
Amortization
Non-compete agreement	30.07%	(0.7)	(7.8)	0.3	-	-	0.6	(7.6)
Import quotas	50.00%	-	(25.6)	-	-	-	3.9	(21.7)
Outgrowers relationship	12.50%	(5.8)	(1.9)	-	-	-	-	(7.7)
Patents	24.07%	(3.0)	(1.1)	-	(0.6)	-	0.8	(3.9)
Customer relationship	7.71%	(49.8)	(47.3)	-	-	(2.7)	18.5	(81.3)
Supplier relationship	42.00%	(9.7)	-	6.5	-	-	1.2	(2.0)
Software	20.00%	(260.5)	(109.9)	41.1	(3.2)	(0.1)	7.8	(324.8)
		(329.5)	(193.6)	47.9	(3.8)	(2.8)	32.8	(449.0)
		5,010.9	(130.9)	(2.2)	2,560.4	56.2	(821.8)	6,672.6

Schedule of pre tax rates

Management adopted the weighted average cost of capital – WACC as the discount rate to the development of discount cash flow, that varied from 9.74% p.a. to 13.25% p.a., according to the reportable operating segment and also adopted the assumptions shown in the table below:

	2017	2018	2019	2020
GDB Brazil	0.70%	2.56%	3.11%	2.83%
Inflation Brazil	3.03%	4.20%	3.95%	3.84%

Schedule of variations in the EBIT margin and WACC

In addition to the above mentioned recovery analysis, management prepared a sensitivity analysis for each reportable operating segment considering the variations in the EBIT margin and in the nominal WACC as presented below:

		Variations
Apreciation (devaluation)	1.0%	0.0%	-1.0%
BRAZIL
WACC (1)	12.99%	11.99%	10.99%
EBIT MARGIN	15.82%	14.82%	13.82%
INTERNATIONAL
WACC (1)	10.51%	9.51%	8.51%
EBIT MARGIN	8.98%	7.98%	6.98%
ONE FOODS
WACC (1)	11.94%	10.94%	9.94%
EBIT MARGIN	14.00%	13.00%	12.00%
SOUTHERN CONE
WACC (1)	14.25%	13.25%	12.25%
EBIT MARGIN	7.86%	6.86%	5.86%

⁽¹⁾ WACC in Reais for the Brazil segment and in USD for the other segments.

XML

19. LOANS AND FINANCING (Tables)

12 Months Ended

Dec. 31, 2017

Loans And Financing Tables

Schedule of loans and financing

	Charges (p.a.)	Weighted average interest rate (p.a.)	WAMT (1)	Current	Non-current	12.31.17	Captured	Business combination (2)	Amortization	Interest paid	Interest accrued	Exchange rate variation	Price index update	Current	Non-current	12.31.16
Local currency
Working capital	7.79% (8.90% on 12.31.16)	7.79% (8.90% on 12.31.16)	0.8	1,631.5	923.9	2,555.4	3,579.4	-	(2,401.0)	(162.2)	213.0	-	-	1,326.1	-	1,326.1
Certificate of agribusiness receivables	96.51% of CDI / IPCA + 5,90% (96.50% of CDI / IPCA + 5,90% on 12.31.16)	7.41% (13.43% on 12.31.16)	2.4	1,097.9	2,473.8	3,571.7	780.0	-	(779.2)	(393.8)	334.6	-	-	168.1	3,462.0	3,630.1
Development bank credit lines	Fixed rate / Selic / TJLP + 1.48% (Fixed rate / Selic / TJLP + 0.75% on 12.31.16)	6.78% (7.93% on 12.31.16)	1.7	313.3	256.8	570.1	62.4	-	(403.8)	(37.3)	47.4	0.2	20.1	381.3	499.7	881.0
Bonds	7.75% (7.75% on 12.31.16)	7.75% (7.75% on 12.31.16)	0.4	503.8	-	503.8	-	-	-	(38.8)	46.4	-	(6.8)	4.1	498.8	502.9
Export credit facility	100.35% of CDI (13.68% on 12.31.16)	6.91% (13.68% on 12.31.16)	1.2	39.2	1,850.0	1,889.2	-	-	-	(214.3)	181.2	-	-	72.3	1,850.0	1,922.3
Special program asset restructuring	Fixed rate / IGPM + 4.90% (Fixed rate / IGPM + 4.90% on 12.31.16)	4.36% (12.09% on 12.31.16)	2.2	3.5	245.8	249.4	-	-	-	(8.1)	9.7	(1.7)	(2.2)	3.5	248.0	251.6
Other secured debts	(8.50% on 12.31.16)	(8.50% on 12.31.16)	-	-	-	-	-	-	(129.9)	(8.9)	9.2	-	-	32.3	97.3	129.6
Fiscal incentives	2.40% (2.40% on 12.31.16)	2.40% (2.40% on 12.31.16)	0.5	3.6	-	3.6	34.4	-	(30.9)	(0.2)	0.2	-	-	0.1	-	0.1
				3,592.8	5,750.3	9,343.0	4,456.3	-	(3,744.7)	(863.5)	841.7	(1.5)	11.1	1,987.9	6,655.7	8,643.7
Foreign currency
Bonds	4.08% (4.71% on 12.31.16) + e.r. US$, EUR and ARS	4.08% (4.71% on 12.31.16) + e.r. US$, EUR and ARS	6.0	105.1	8,424.8	8,529.9	77.1	-	(396.0)	(382.0)	410.4	326.7	-	489.2	8,004.4	8,493.6
Export credit facility	LIBOR + 1.85% (LIBOR + 2.71% on 12.31.16) + e.r. US$	3.35% (3.85% on 12.31.16) + e.r. US$	2.2	953.5	1,197.2	2,150.7	3,576.0	-	(2,981.2)	(98.5)	105.5	238.3	-	312.2	998.4	1,310.6
Advances for foreign exchange rate contracts	(2.39% on 12.31.16) + e.r. US$	(2.39% on 12.31.16) + e.r. US$	-	-	-	-	4.1	-	(203.4)	(4.7)	0.3	(9.1)	-	212.8	-	212.9
Development bank credit lines	UMBNDES + 1.73% (UMBNDES + 2.10% on 12.31.16) + e.r. US$ and other currencies	6.22% (6.24% on 12.31.16) + e.r. US$ and other currencies	1.0	2.6	1.0	3.6	-	-	(5.9)	(0.4)	1.2	(0.3)	-	5.9	3.0	8.9
Working capital	23.10% (14.28% on 12.31.16) + e.r. ARS / + e.r US$	23.10% (14.28% on 12.31.16) + e.r. ARS / + e.r US$	1.5	128.2	39.7	167.9	1,584.8	-	(1,629.4)	(19.8)	59.2	(119.7)	-	236.9	55.8	292.7
Working capital	15.95% + e.r TRY	15.95% + e.r TRY	0.1	249.2	-	249.2	-	389.2	(40.6)	-	5.1	(104.3)	-	-	-	-
				1,438.6	9,662.8	11,101.3	5,242.1	389.2	(5,256.5)	(505.5)	581.8	331.5	-	1,257.1	9,061.6	10,318.7
				5,031.4	15,413.0	20,444.4	9,698.4	389.2	(9,001.2)	(1,369.0)	1,423.5	330.1	11.1	3,245.0	15,717.4	18,962.4

⁽¹⁾ Weighted average maturity in years.

⁽²⁾ Balance arising from business combination with Banvit (note 6.1.3).

The maturity schedule of the loans and financing balances is as follows:

	12.31.17
2018	5,031.4
2019	3,983.9
2020	1,684.7
2021	125.4
2022	3,106.2
2023 onwards	6,512.8
	20,444.4

Schedule of guarantees

	12.31.17	12.31.16
Total of loans and financing	20,444.4	18,962.4
Mortgage guarantees	577.2	1,019.6
Related to FINEM-BNDES	462.8	771.3
Related to FNE-BNB	-	129.6
Related to tax incentives and other	114.4	118.7

Schedule of commitments for purchases of goods and services

The Company enters into other agreements, such as electricity, packaging supplies and manufacturing activities. The amounts of the agreements at the date of these financial statements are set forth below:

	12.31.17
2018	4,862.1
2019	922.9
2020	346.9
2021	208.7
2022	100.8
2023 onwards	123.0
	6,564.4

XML

20. TRADE ACCOUNTS PAYABLE (Tables)

12 Months Ended

Dec. 31, 2017

Trade Accounts Payable Tables

Schedule of trade and accounts payable

	12.31.17	12.31.16
Domestic suppliers
Third parties	4,451.1	4,148.1
Related parties	16.6	13.1
	4,467.7	4,161.2
Foreign suppliers
Third parties	2,030.6	1,727.5
Related parties	-	-
	2,030.6	1,727.5
(-) Adjustment to present value	(52.8)	(48.9)
	6,445.5	5,839.8

XML

21. SUPPLY CHAIN FINANCE (Tables)

12 Months Ended

Dec. 31, 2017

Supply Chain Finance Tables

Schedule of supply chain finance

	12.31.17	12.31.16
Supply chain finance - Domestic suppliers	518.4	1,007.1
Supply chain finance - Foreign suppliers	196.8	328.5
	715.2	1,335.6

XML

22. DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Financial Instruments Tables

Schedule of other financial assets and liabilities.

	12.31.17	12.31.16
Derivatives designated as hedge accounting
Assets
Non-deliverable forward (NDF)	1.1	76.3
Currency option contracts	23.6	118.7
Commodities (corn) non-deliverable forward (NDF)	0.8	2.4
Commodities (Soy) non-deliverable forward (NDF)	1.1	-
Corn option contracts	0.8	-
Commodities (Soybean oil) non-deliverable forward (NDF)	0.1	-
	27.5	197.4
Liabilities
Non-deliverable forward of currency (NDF)	(6.8)	(1.8)
Commodities (soybean) non-deliverable forward (NDF)	(3.0)	(0.9)
Commodities (soybean oil) non-deliverable forward (NDF)	(0.1)	-
Currency option contracts	(25.9)	(35.1)
Corn option contracts	(0.6)	-
Soybean option contracts	(1.5)	-
Deliverable forwards contracts	-	(0.3)
Commodities (corn) non-deliverable forward (NDF)	(4.6)	(0.6)
Corn and soymeal future contracts - B3	-	-
Exchange rate contracts currency (Swap)	(166.3)	(184.2)
	(208.8)	(222.9)
Derivatives not designated as hedge accounting
Assets
Non-deliverable forward of currency (NDF)	36.4	-
Currency option contracts	1.5	-
Exchange rate contracts currency (Swap)	25.1	0.4
	63.0	0.4
Liabilities
Non-deliverable forward of currency (NDF)	(2.0)	(83.0)
Currency option contracts	(2.0)	-
Swap (index / Currency / stocks)	(86.5)	(218.5)
Dollar future contracts - B3	(0.2)	(5.2)
	(90.7)	(306.7)
	-	-
Current assets	90.5	198.0
Current liabilities	(299.5)	(529.6)

XML

23. LEASES (Tables)

12 Months Ended

Dec. 31, 2017

Leases Tables

Schedule of minimum future payments of non-cancellable operating lease

The minimum future payments of non-cancellable operating lease are presented below:

	12.31.17
2018	374.9
2019	76.8
2020	44.6
2021	34.5
2022	31.7
2023 onwards	93.0
	655.5

Schedule of finance leases mainly for the acquisitions of machinery, equipment, vehicles, software and buildings

The Company enters into finance leases mainly for the acquisitions of machinery, equipment, vehicles, software and buildings, presented below:

	Weighted average interest rate (p.a.) (1)	12.31.17	12.31.16
Cost
Machinery and equipment		98.1	115.8
Software		97.1	78.7
Vehicles		0.3	0.5
Land		1.4	1.7
Buildings		218.8	144.4
Facilities		14.7	-
		430.4	341.1
Accumulated depreciation
Machinery and equipment	44.88%	(45.3)	(38.4)
Software	80.00%	(84.6)	(63.5)
Vehicles	20.00%	(0.2)	(0.3)
Buildings	8.33%	(59.1)	(44.1)
Facilities	6.67%	(0.7)	-
		(189.9)	(146.3)
		240.5	194.8

⁽¹⁾ The period of depreciation of leased assets corresponds to the lowest of term of the contract and the useful life of the asset, as determined by IAS 17.

Schedule of minimum future payments for these finance leases

The minimum future payments required for these finance leases are segregated as follows, and were recorded in current and non-current liabilities:

	12.31.17
	Present value of minimum payments	Interest	Minimum future payments
2018	51.7	20.9	72.5
2019	43.3	20.2	63.5
2020	30.4	15.0	45.4
2021	20.4	9.0	29.4
2022	16.1	8.3	24.4
2023 onwards	70.7	46.8	117.6
	232.6	120.2	352.8

Schedule of estimated schedule of future payments

The estimated schedule of future payments related to this agreement is set forth below:

	12.31.17
2018	-
2019	9.4
2020	9.4
2021	9.4
2022	9.4
2023 onwards	84.9
	122.5

XML

24. SHARE BASED PAYMENT (Tables)

12 Months Ended

Dec. 31, 2017

Share Based Payment Tables

Schedule of vesting period deadlines according to plan

The vesting period during which the participant can not exercise the purchase of the shares for Plan I is 1 to 3 years and for Plan II is 1 to 4 years, respecting the following deadlines from the grant date of the option.

Plan I		Plan II
Quantity	Deadline	Quantity	Deadline
1/3	1 year	1/4	1 year
2/3	2 years	2/4	2 years
3/3	3 years	3/4	3 years
-	-	4/4	4 years

Schedule of breakdown of outstanding granted options

The breakdown of the outstanding granted options is presented as follows:

Date			Quantity		Grant (1)	Strike price (1)
Grant date	Beggining of exercise period	End of the exercise period	Options granted	Outstanding options	Fair value of the option	Granting date	Updated IPCA
Plan I
05.02.13	05.01.14	05.01.18	34,90,201	3,04,968	11.88	46.86	62.12
04.04.14	04.03.15	04.03.19	15,52,564	4,83,201	12.56	44.48	55.85
05.02.14	05.01.15	05.01.19	16,10,450	6,70,107	14.11	47.98	59.84
12.18.14	12.17.15	12.17.19	57,02,714	31,02,620	14.58	63.49	77.15
			1,23,55,929	45,60,896
Plan II
04.26.16	04.30.17	12.30.22	87,24,733	43,75,000	9.21	56.00	59.09
05.31.16	05.31.17	12.30.22	33,51,220	23,03,260	10.97	46.68	48.87
03.30.17	03.30.18	12.29.23	8,63,528	6,35,442	9.45	38.43	39.01
12.01.17	12.01.18	12.29.23	2,90,771	2,90,771	7.91	41.69	41.69
			1,32,30,252	76,04,473
			2,55,86,181	1,21,65,369

⁽¹⁾ Amounts expressed in Brazilian Reais

Schedule of restricted stock plan

The total number of restricted shares that may be granted under the plan shall not exceed 0.5% of the registered common shares, in book-entry form without par value, representing the Company's total share capital.

Date		Quantity		Grant (1)
Grant	Term of acquisition of right	Shares granted	Outstanding shares	Fair value of the shares
Restricted stock plan
08.31.17	08.31.19	7,16,846	7,06,820	41.85
		7,16,846	7,06,820

Schedule of outstanding granted options

The rollforward of the outstanding granted options for the year ended December 31, 2017 is presented as follows:

Outstanding options as of December 31, 2016	1,65,06,807
Issued - grant of 2017
November 2017	2,90,771
August 2017 - Restricted stock plan	7,16,846
March 2017	8,63,528
Forfeited:
Grant of 2017	(2,28,086)
Grant of 2017 (Restricted stock)	(10,026)
Grant of 2016	(26,81,350)
Grant of 2014	(17,25,218)
Grant of 2014	(1,52,145)
Grant of 2013	(4,15,017)
Grant of 2012	(2,93,921)
Outstanding options as of December 31, 2017	1,28,72,189

Schedule of expected maturity of the option

The fair value of the stock options was measured using the Black-Scholes pricing model, based on the following assumptions:

	12.31.17
	Plan I	Plan II
Expected maturity of the option:
Exercise in the 1st year	3.0 years	3.5 years
Exercise in the 2nd year	3.5 years	4.0 years
Exercise in the 3rd year	4.0 years	4.5 years
Exercise in the 4th year	-	5.0 years
Risk-free interest rate	5.09%	6.25%
Volatility	26.05%	27.07%
Expected dividends over shares	1.23%	2.40%
Expected inflation rate	3.71%	3.79%

XML

25. EMPLOYEES BENEFITS PLANS (Tables)

12 Months Ended

Dec. 31, 2017

Employees Benefits Plans Tables

Schedule of pension plans for its employees and executives

The Company sponsors pension plans for its employees and executives as presented below:

Plan	Modality	Adhesions
Plan I	Defined Contribution	Closed
Plan II	Defined Contribution	Closed
Plan III	Defined Contribution	Open
FAF	Defined Benefit	Closed

Schedule of assets and actuarial liabilities

The assets and actuarial liabilities are presented below:

	FAF		Plano I and II
	12.31.17	12.31.16	12.31.17	12.31.16
Composition of actuarial assets and liabilities
Present value of actuarial liabilities	2,275.9	2,000.3	16.0	15.2
Fair value of assets	(3,077.4)	(2,838.6)	(26.7)	(26.5)
(Surplus) Deficit	(801.5)	(838.3)	(10.7)	(11.3)
Irrecoverable surplus - (asset ceiling)	801.5	838.3	8.5	8.1
Net actuarial (assets) liabilities	-	-	(2.2)	(3.2)
Rollforward of irrecoverable surplus
Beginning balance of irrecoverable surplus	838.3	743.6	8.1	4.4
Interest on irrecoverable surplus	93.9	90.3	0.9	0.5
Changes in irrecoverable surplus during the year	(130.7)	4.4	(0.5)	3.1
Ending balance of irrecoverable surplus	801.5	838.3	8.5	8.0
Rollforward of present value of actuarial liabilities
Beginning balance of the present value of liabilities	2,000.3	1,675.5	15.2	12.9
Interest on actuarial obligations	217.3	197.1	1.6	1.5
Current service cost	26.8	23.4	-	-
Benefit paid	(117.5)	(105.0)	(1.5)	(1.2)
Contributions of the sponsor	-	0.3	-	-
Actuarial losses - experience	(48.7)	27.5	(0.6)	1.0
Actuarial losses - hypothesis	197.6	153.5	1.2	1.0
Actuarial losses - demographic hypothesis	-	28.3	-	-
Ending balance of actuarial liabilities	2,275.9	2,000.5	16.0	15.2
Rollforward of fair value assets
Beginning balance of the fair value of plan assets	(2,838.7)	(2,419.0)	(26.5)	(21.9)
Interest income on assets plan	(311.2)	(287.4)	(2.9)	(2.6)
Transfers	-	(38.0)	-	-
Benefit paid	117.5	105.0	1.5	1.2
Contributions paid by the sponsor	-	(0.1)	-	-
Contributions paid by the employee	-	(0.3)	-	-
Return on assets higher (lower) than projection	(45.0)	(237.0)	1.2	(3.1)
Early elimination of obligations	-	38.0	-	-
Ending balance of fair value assets	(3,077.4)	(2,838.8)	(26.7)	(26.4)
Rollforward of comprehensive income
Beginning balance	23.3	27.4	(2.1)	(1.5)
Reversion to statement of income	(23.3)	(27.4)	2.1	1.5
Actuarial gains (losses)	(148.9)	(209.2)	(0.6)	(2.1)
Return on assets higher (lower) than projection	45.0	237.0	(1.2)	3.1
Changes on irrecoverable surplus	130.7	(4.4)	0.5	(3.1)
Ending balance of comprehensive income	26.8	23.4	(1.3)	(2.1)
Costs recognized in statement of income
Current service costs	(26.8)	(23.4)	-	-
Interest on actuarial obligations	(217.3)	(197.1)	(1.6)	(1.5)
Projected return on assets	311.2	287.4	2.9	2.6
Interest on irrecoverable surplus	(93.9)	(90.3)	(0.9)	(0.5)
Costs recognized in statement of income	(26.8)	(23.4)	0.4	0.6
Estimated costs for the next year
Costs of defined benefit	(28.0)	(26.8)	0.2	0.4
Estimated costs for the next year	(28.0)	(26.8)	0.2	0.4

Schedule of actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are summarized below:

	FAF		Plan I e II
	12.31.17	12.31.16	12.31.17	12.31.16
Actuarial assumptions
Economic hypothesis
Discount rate	9.74%	11.20%	9.72%	11.25%
Inflation rate	4.25%	4.85%	4.25%	4.85%
Wage growth rate	4.93%	5.53%	N/A	N/A
Demographic hypothesis
Schedule of mortality	AT-2000	AT-2000	AT-2000	AT-2000
Schedule of disabled mortality	RRB-1983	RRB-1983	RRB-1983	RRB-1983
Demographic data
Number of active participants	7,924	8,384	-	-
Number of participants in direct proportional benefit	10	41	-	-
Number of assisted beneficiary participants	6,233	5,984	51	54

Schedule of composition of the investment portfolio

The composition of the investment portfolios is presented below:

	FAF				Plans I and II
	12.31.17		12.31.16		12.31.17		12.31.16
Composition of the fund's portfolio
Fixed income	2,238.1	72.7%	2,110.8	74.4%	23.1	86.4%	23.0	87.1%
Variable income	363.6	11.8%	339.8	12.0%	2.5	9.3%	2.9	10.8%
Real estate	197.7	6.4%	227.9	8.0%	-	0.0%	-	-
Structured investments	257.5	8.4%	141.6	5.0%	1.1	4.1%	0.5	1.9%
Transactions with participants	20.4	0.7%	18.5	0.6%	-	0.2%	0.1	0.2%
	3,077.4	100.0%	2,838.6	100.0%	26.7	100.0%	26.5	100.0%
% of nominal return on assets	10.90%		14.90%		8.92%		13.19%

Schedule of expected benefit payments and average terms of plan obligations

The following amounts represent the expected benefit payments for future years and the average duration of the plan obligations:

	FAF	Plans I and II
2018	128.7	1.2
2019	137.5	1.3
2020	147.6	1.3
2021	160.1	1.4
2022	171.8	1.4
2023 to 2027	1,039.3	7.7
Weighted average duration - in years	12.48	10.23

Schedule of quantitative sensitivity analysis regarding relevant assumptions of defined benefit plan

The quantitative sensitivity analysis regarding the relevant assumptions of defined benefit plan – FAF on December 31, 2017 is presented below:

		Variation of (+1%)		Variation of (-1%)
Relevant assumptions	Assumptions utilized	Average rate	Actuarial liabilities (1)	Average rate	Actuarial liabilities (1)
Benefit plan - FAF
Discount rate	9.74%	10.74%	(252.0)	8.74%	292.7
Wage growth rate	4.93%	5.93%	74.7	3.93%	(53.1)

Schedule of description and characteristics of benefits and associated risks

	Liabilities
	12.31.17	12.31.16
Medical assistance	132.8	112.3
F.G.T.S. Penalty (1)	161.3	137.2
Award for length of service	49.3	52.0
Other (2)	51.4	28.6
	394.8	330.1
	-	-
Current	85.2	76.7
Non-current	309.6	253.4

⁽¹⁾ FGTS – Government Severance Indemnity Fund for Employees

⁽²⁾ Post-employment benefit paid at the moment of employee’s termination in the amount of R$20.1 arising from business combination with Banvit.

Schedule of liabilities related to other benefits

The rollforward of actuarial liabilities related to other benefits, prepared based on an actuarial report, are as follows:

	Medical plan		F.G.T.S. penalty		Award for length of service		Others (1)
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Composition of actuarial liabilities
Present value of actuarial liabilities	132.8	112.3	161.3	137.2	49.3	52.0	31.2	28.6
Net actuarial liabilities	132.8	112.3	161.3	137.2	49.3	52.0	31.2	28.6
Rollforward of present value of actuarial liabilities
Beginning balance of present value of actuarial liabilities	112.3	130.0	137.2	105.2	52.0	41.4	28.6	22.4
Interest on actuarial liabilities	12.3	15.4	13.2	10.7	5.1	4.2	2.9	2.4
Early settlement of liabilities	-	(0.1)	-	(13.8)	-	(4.3)	-	(2.5)
Current service costs	0.2	0.2	6.0	4.3	2.1	1.4	0.9	0.6
Past service costs - changes in plan	2.9	0.1	-	13.8	-	4.3	-	2.5
Benefits paid directly by the Company	(1.1)	(5.5)	(16.6)	(7.9)	(9.5)	(10.4)	(4.1)	(2.9)
Actuarial (gains) losses - experience	(5.1)	(38.1)	14.8	7.5	-	7.3	2.0	2.9
Actuarial (gains) losses - demographic hypothesis	(2.4)	(0.4)	(4.3)	13.8	(1.8)	7.1	(0.8)	2.2
Actuarial losses - economic hypothesis	13.7	10.6	11.1	3.7	1.4	0.9	1.7	0.9
Ending balance of liabilities	132.8	112.3	161.3	137.2	49.3	52.0	31.2	28.6
Rollforward of fair value assets
Benefits paid directly by the Company	1.1	5.5	16.6	7.9	9.5	10.4	4.1	2.9
Contributions of the sponsor	(1.1)	(5.5)	(16.6)	(7.9)	(9.5)	(10.4)	(4.1)	(2.9)
Ending balance of fair value of assets	-	-	-	-	-	-	-	-
Rollforward of comprehensive income
Beginning balance	(31.2)	(59.0)	(64.9)	89.8	(38.0)	(22.7)	(12.9)	(6.9)
Actuarial gains (losses)	(6.2)	27.8	(21.6)	(25.0)	0.5	(15.3)	(3.0)	(6.0)
Ending balance of comprehensive income	(37.4)	(31.2)	(86.5)	64.8	(37.5)	(38.0)	(16.0)	(12.9)
Costs recognized in statement of income
Interest on actuarial liabilities	(12.3)	(15.4)	(13.2)	(10.7)	(5.1)	(4.2)	(2.9)	(2.4)
Current service costs	(0.2)	(0.2)	(6.0)	(4.3)	(2.1)	(1.4)	(0.9)	(0.6)
Past service costs	(2.9)	(0.1)	-	(13.8)	-	(4.3)	-	(2.5)
Gains on early settlement	-	0.1	-	13.8	-	4.3	-	2.5
Cost recognized in statement of income	(15.4)	(15.6)	(19.1)	(15.0)	(7.2)	(5.6)	(3.7)	(3.0)
Estimated costs for the next year
Current service costs	(0.2)	(0.2)	(6.5)	(6.0)	(2.1)	(2.1)	(0.8)	(0.9)
Interest on actuarial liabilities	(12.7)	(12.3)	(12.2)	(13.2)	(4.0)	(5.1)	(2.5)	(2.9)
Past service costs - changes in plan	-	(2.9)	-	-	-	-	-	-
Estimated costs for the next year	(12.9)	(15.4)	(18.8)	(19.2)	(6.1)	(7.2)	(3.3)	(3.8)

⁽¹⁾ Considers the sums of the retirement compensation and life insurance benefits.

Schedule of actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are summarized below:

	Medical plan		F.G.T.S. penalty		Award for length of service		Others (1)
Actuarial assumptions	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Economic hypothesis
Discount rate	9.76%	11.22%	9.30%	11.64%	9.30%	11.69%	9.30%	11.64%
Inflation rate	4.25%	4.85%	4.25%	4.85%	4.25%	4.85%	4.25%	4.85%
Medical inflation	7.38%	8.00%	N/A	N/A	N/A	N/A	N/A	N/A
Wage growth rate	N/A	N/A	4.25%	5.80%	4.25%	5.80%	4.25%	5.80%
F.G.T.S. balance growth	N/A	N/A	4.00%	4.00%	N/A	N/A	N/A	N/A
	Medical plan		Life insurance		Other benefits
Actuarial assumptions	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Demographic hypothesis
Schedule of mortality	AT-2000	AT-2000	AT-2000	AT-2000	AT-2000	AT-2000
Schedule of disabled	RRB-1944	RRB-1944	RRB-1944	RRB-1944	RRB-1944	RRB-1944
Schedule of disabled mortality	RRB-1983	RRB-1983	RRB-1983	RRB-1983	RRB-1983	RRB-1983
Schedule of turnover - BRF's historical	2,017	2,016	2,017	2,016	2,017	2,016
Demoraphic data
Number of active participants	1,287	1,477	89,596	90,861	86,817	86,864
Number of assisted beneficiary participants	643	638	2,097	2,863	-	-

⁽¹⁾ Includes retirement compensation and life insurance benefits.

Schedule of expected benefit payments for future

The following amounts represent the expected benefit payments for future years (10 years), from the obligation of benefits granted and the average duration of the plan obligations:

Payments	Medical plan	F.G.T.S. penalty	Award for length of service	Others	Total
2018	5.3	52.8	11.0	7.5	76.6
2019	5.8	11.4	5.4	2.5	25.2
2020	6.4	13.9	7.0	3.0	30.2
2021	7.0	15.9	6.5	2.7	32.1
2022	7.6	15.1	6.3	2.5	31.5
2023 to 2027	49.3	79.2	25.7	10.5	164.7
Weighted average duration - in years	15.13	4.47	4.6	5.66	7.00

Schedule of sensitivity analysis of post-employment plans

The Company made the sensitivity analysis regarding the relevant assumptions of the plans on December 31, 2017, as presented below:

		(+) Variation		(-) Variation
Relevant assumptions	Assumptions utilized	Average (%)	Actuarial liabilities (1)	Average (%)	Actuarial liabilities (1)
Medical plan
Discount rate	9.76%	10.76%	(16.4)	8.76%	20.3
Medical inflation	7.38%	8.38%	20.0	6.38%	(16.4)
Turnover	Historical	+3%	(0.5)	-3%	0.8
F.G.T.S. penalty
Discount rate	9.30%	10.30%	(4.9)	8.30%	5.5
Wage growth rate	4.25%	5.25%	0.8	3.25%	(0.3)
Turnover	Historical	+3%	(16.7)	-3%	22.8

XML

26. PROVISION FOR TAX, CIVIL AND LABOR RISKS (Tables)

12 Months Ended

Dec. 31, 2017

Provision For Tax Civil And Labor Risks Tables

Schedule of contingencies for probable losses

The rollforward of the provisions for tax, civil and labor risks is summarized below:

	Tax		Labor		Civil, commercial and other		Contingent liabilities		Total
	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16	12.31.17	12.31.16
Beginning balance	281.7	240.5	479.7	377.0	122.5	65.7	499.9	522.6	1,383.9	1,205.9
Additions	177.1	107.2	704.0	559.5	164.1	82.6	11.0	-	1,056.1	749.3
Business combination (1)	-	28.7	1.8	17.8	-	4.5	-	-	1.8	51.0
Reversals	(50.8)	(48.0)	(270.8)	(254.3)	(75.1)	(12.2)	(139.5)	(20.9)	(536.2)	(335.4)
Payments	(127.0)	(69.4)	(338.9)	(282.0)	(43.3)	(49.7)	-	-	(509.3)	(401.1)
Price index update	26.6	26.5	128.5	70.0	242.0	32.5	-	-	397.1	129.0
Exchange rate variation	(4.2)	(3.8)	(12.6)	(8.3)	(2.7)	(0.9)	(0.8)	(1.8)	(20.2)	(14.8)
Ending balance	303.4	281.7	691.7	479.7	407.5	122.5	370.6	499.9	1,773.2	1,383.9
Current									536.1	276.2
Non-current									1,237.1	1,107.7

⁽¹⁾ Balance arising from the business combination with Banvit (note 6.1.3).

XML

27. SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2017

Shareholders Equity Tables

Schedule of breakdown of capital stock by nature

	12.31.17	12.31.16	12.31.15
Common shares	812,473,246	812,473,246	872,473,246
Treasury shares	(1,333,701)	(13,468,001)	(62,501,001)
Outstanding shares	811,139,545	799,005,245	809,972,245

Schedule of rollforward of outstanding shares

			Quantity of outstanding of shares
	12.31.17	12.31.16	12.31.15
Shares at the beggining of the year	799,005,245	809,972,245	867,284,349
Purchase of treasury shares	-	(11,107,600)	(59,247,400)
Sale of treasury shares	12,134,300	140,600	1,935,296
Shares at the end of the year	811,139,545	799,005,245	809,972,245

Schedule of shareholders' remuneration

	12.31.17	12.31.16	12.31.15
Net profit (Loss)	(1,125.6)	(372.4)	3,111.2
Legal reserve (5.00%)	-	-	(155.6)
Dividends calculation base	(1,125.6)	(372.4)	2,955.6
Minimum mandatory dividend (25.00%)	-	-	738.9
Remuneration of shareholders' exceeding the mandatory minimum	-	513.2	251.8
Total remuneration of shareholders' in the year, as interest on shareholders' equity	-	513.2	990.7
Withholding income tax on interest on shareholders' equity	-	(77.0)	(88.9)
Remuneration of shareholders', net of withholding income tax	-	436.2	901.8
Dividends paid per share	-	0.76410	1.19979
Payment of interest on shareholders' equity, paid in 2016 - gross of withholding income tax of R$77.0	-	(513.2)	(425.9)
Paid in the previous period - interest on shareholders' equity of 2015 - gross withholding income tax of R$48.3	-	(473.4)	(376.7)
Dividends paid related to 2015	-	(189.7)	(86.5)
Payments made during in the year	-	(1,176.3)	(889.1)
Total remuneration of shareholders' outstanding	-	-	564.8
Withholding income tax on interest on shareholders' equity	-	-	(48.3)
Remaining amounts outstanding	1.9	2.3	1.9
Interest on shareholders' equity outstanding	1.9	2.3	518.5

Schedule of profit distribution/Loss absorption

		Loss absorption		Reserve balances
	Limit on
	capital %	12.31.17	12.31.16	12.31.17	12.31.16
Actuarial loss FAF	-	(16.8)	(19.1)	-	-
Interest on shareholdes' equity	-	-	513.2	-	-
Legal reserve	20	(438.8)	-	101.4	540.2
Capital increase reserve	20	(30.3)	(989.1)	-	170.8
Reserve for tax incentives	-	(639.7)	122.6	-	639.7
		(1,125.6)	(372.4)	101.4	1,350.7

Schedule of capital reserve

	Capital Reserves
	12.31.17	12.31.16
Result on disposal of shares	(40.7)	(40.7)
Granted shares canceled	(32.4)	(32.4)
Valuation of stock exchange	166.2	166.2
Shares based payment	261.8	236.2
Goodwill on acquisition of non-controlling entities	(40.5)	(47.4)
Acquisition of non-controlling entities	(199.3)	(240.9)
	115.1	41.0

Schedule of treasury shares

		Quantity of outstanding of shares
	12.31.17	12.31.16
Shares at the beggining of the year	13,468,001	62,501,001
Cancellation of treasury shares	-	(60,000,000)
Purchase of treasury shares	-	11,107,600
Sale of treasury shares	(12,134,300)	(140,600)
Shares at the end of the year	1,333,701	13,468,001

Schedule of Breakdown of the capital by owner

The shareholding position of shareholders holding more than 5% of the voting capital, management and members of the Board of Directors is presented below (unaudited):

	12.31.17		12.31.16
Shareholders	Quantity	%	Quantity	%
Major shareholders
Fundação Petrobras de Seguridade Social - Petros (1)	92,716,266	11.41	92,761,499	11.42
Caixa de Previd. dos Func. Do Banco do Brasil (1)	86,605,452	10.66	86,628,752	10.66
Tarpon	59,014,607	7.26	95,984,835	11.81
Aberdeen (1)	40,748,226	5.02	36,580,714	4.50
Management
Board of Directors	41,220,470	5.07	37,348,439	4.60
Executives	157,546	0.02	50,252	0.01
Treasury shares	1,333,701	0.16	13,468,001	1.66
Other	490,676,978	60.40	449,650,754	55.34
	812,473,246	100.00	812,473,246	100.00

⁽¹⁾ The pension funds are controlled by employees that participate in the respective entities.

XML

28. (LOSS) EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

Loss Earnings Per Share Tables

Schedule of earnings per share

	12.31.17	12.31.16	12.31.15
Basic numerator
Income (loss) for the year attributable to controlling shareholders	(1,125.6)	(372.4)	3,111.2
Basic denominator
Common shares	812,473,246	812,473,246	872,473,246
Weighted average number of outstanding shares - basic (except treasury shares)	803,559,763	801,903,266	842,000,012
Loss per share basic - R$	(1.36748)	(0.45808)	3.71836
Diluted numerator
Income (loss) fot the year attributable to controlling shareholders	(1,125.6)	(372.4)	3,111.2
Diluted denominator
Weighted average number of outstanding shares - basic (except treasury shares)	803,559,763	801,903,266	842,000,012
Number of potential shares (stock options)	-	-	401,809
Weighted average number of outstanding shares - diluted	803,559,763	801,903,266	842,401,821
Loss per share diluted - R$	(1.36748)	(0.45808)	3.71659

XML

30. RELATED PARTIES (Tables)

12 Months Ended

Dec. 31, 2017

Related Parties Tables

Schedule of the balances and rates charged for the transactions

The Company has entered into transactions with companies that are owned by members

of its Board of Directors as demonstrated below:

Companies	Type of transactions	12.31.17	12.31.16
Corall Consultoria Ltda (2)	Corall provided consulting services to BRF	-	(1.8)
Edavila Consultoria Empresarial Eireli (1)	Edavila provided consulting services to BRF	(0.5)	(0.3)
Hortigil Hortifruti S.A. ("Hortigil") (2)	BRF sells products to Hortigil	-	3.5
Instituto de Desenvolvimento Gerencial S.A.("Instituto") (2)	Instituto provided consulting services to BRF	(0.9)	(5.0)

⁽¹⁾ Entity on which BRF has no equity interest, but have relationship with the Board of Directors, and provided services to the Company related international marketing and innovation.

⁽²⁾ Entities are no longer related parties, because Board of Director member has no more relationship with them.

Schedule of total remuneration and benefits paid to professionals

The total remuneration and benefits paid to these professionals are demonstrated below:

	12.31.17	12.31.16
Salary and profit sharing	32.8	27.5
Short term benefits (1)	0.4	0.3
Pension plan	0.6	0.8
Post-employment benefits	0.2	0.2
Termination benefits	5.8	5.9
Share based payment	17.0	16.8
	56.8	51.5

⁽¹⁾ Comprises: Medical assistance, educational expenses and others.

XML

31. NET SALES (Tables)

12 Months Ended

Dec. 31, 2017

Net Sales Tables

Schedule of net sales

		Restated	Restated
	12.31.17	12.31.16	31.12.15
Gross sales
Brazil	19,350.0	18,621.2	19,011.7
One Foods	7,497.1	6,877.2	6,886.2
International	8,889.6	9,994.0	8,293.6
Southern Cone	2,250.5	2,168.1	2,187.8
Other segments	1,303.5	1,401.8	855.3
	39,290.7	39,062.3	37,234.6
Sales deductions
Brazil	(4,161.4)	(3,813.1)	(3,756.1)
One Foods	(800.3)	(650.6)	(527.9)
International	(392.6)	(357.7)	(378.5)
Southern Cone	(388.9)	(403.2)	(302.1)
Other segments	(78.1)	(104.8)	(73.4)
	(5,821.3)	(5,329.4)	(5,038.0)
Net sales
Brazil	15,188.6	14,808.1	15,255.5
One Foods	6,696.8	6,226.6	6,358.3
International	8,497.0	9,636.3	7,915.1
Southern Cone	1,861.6	1,764.8	1,885.7
Other segments	1,225.4	1,297.1	782.0
	33,469.4	33,732.9	32,196.6

XML

33. OTHER OPERATING INCOME (EXPENSES), NET (Tables)

12 Months Ended

Dec. 31, 2017

Other Operating Income Expenses Net Tables

Schedule of other operating income (expense)

	12.31.17	12.31.16	12.31.15
Income
Tax amnesty program ("PERT")	147.7	-	-
Recovery of expenses (1)	120.6	101.3	241.1
Scrap sales	14.5	14.4	12.3
Provision reversal	13.4	56.1	141.7
Gain on step business combination	-	59.6	-
Gain from the disposal of property, plant and equipment	-	38.4	-
Other	69.3	30.5	45.8
	365.4	300.3	566.6
Expenses
Provision for civil, labor and tax risks	(332.9)	(136.9)	(44.8)
Provision for adjustment to realizable value of inventories (effect Weak Flesh Operation) (2)	(283.1)	-	-
Expenses arising from Weak Flesh Operation (2)	(80.3)	-	-
Rewards and short-term incentive	(111.3)	(11.1)	(302.8)
Disabled operations (3)	(81.4)	(106.2)	(86.1)
Business combination costs	(51.9)	-	-
Discontinued operations	(44.7)	(17.4)	-
Other employees benefits	(43.7)	(41.1)	(52.5)
Costs on business disposals	(36.7)	-	-
Stock options plan	(25.6)	(43.5)	(58.9)
Insurance claims costs	(24.3)	(33.1)	(15.1)
Net loss from the disposals of property, plant and equipment	(17.1)	-	(16.4)
Allowance for doubtful accounts	(13.6)	(5.5)	(196.7)
Other	(107.0)	(103.1)	(120.0)
	(1,253.6)	(497.8)	(1,011.3)
	(888.2)	(197.5)	(444.7)

⁽¹⁾ The accumulated balance in 2017 refers mainly to extemporaneous tax credits in the amount of R$91.9.

⁽²⁾ Expenses arising from Weak Flesh Operation (note 1.5).

⁽³⁾ Disable operations includes depreciation charge of R$41.4 (R$29.4 in 2016 and R$18.3 in 2015).

XML

34. FINANCIAL INCOME (EXPENSES), NET (Tables)

12 Months Ended

Dec. 31, 2017

Financial Income Expenses Net Tables

Schedule of finance income

	12.31.17	12.31.16	12.31.15
Financial income
Exchange rate variation on other liabilities	361.9	-	-
Interest on assets	305.5	318.1	235.0
Tax amnesty program ("PERT")	302.1	-	-
Interest on cash and cash equivalents	272.8	217.5	164.2
Exchange rate variation on net assets of foreign subsidiaries (1)	213.5	-	-
Interests on financial assets classified as	-	-	-
Held to maturity	61.7	84.8	55.1
Held for trading	19.8	43.6	47.4
Available for sale	8.2	-	16.6
Exchange rate variation on marketable securities	-	56.2	381.3
Exchange rate variation on other assets	-	338.7	1,081.0
Gains from derivative transactions, net	-	-	14.8
Exchange rate variation on loans and financing	-	1,314.8	-
Exchange rate variation on net foreign assets	-	-	1,353.5
Others	-	-	6.4
	1,545.6	2,373.7	3,355.3
Financial expenses
Interest on loans and financing	(1,480.5)	(1,208.9)	(819.2)
Exchange rate variation on other assets	(574.9)	-	-
Interest on liabilities	(500.0)	(279.8)	(165.4)
Adjustment to present value	(302.5)	(353.6)	(240.1)
Exchange rate variation on loans and financing	(211.7)	-	(2,085.8)
Losses on derivative transactions, net	(114.4)	(1,092.2)	-
Exchange rate variation on marketable securities	(94.6)	-	-
Financial expenses on accounts payable	(22.4)	(76.4)	(45.5)
Exchange rate variation on other liabilities	-	(565.9)	(1,080.5)
Exchange rate variation on net assets of foreign subsidiaries (1)	-	(660.5)	-
Premium paid for the repurchase of bonds (Tender Offer)	-	(31.8)	(310.3)
Others	(326.3)	(237.3)	(278.7)
	(3,627.3)	(4,506.4)	(5,025.5)
	(2,081.6)	(2,132.7)	(1,670.2)

⁽¹⁾ Refers to gains and losses on translation of assets and liabilities reported by the Company’s subsidiaries whose functional currency is Real.

XML

35. STATEMENT OF INCOME BY NATURE (Tables)

12 Months Ended

Dec. 31, 2017

Statement Of Income By Nature Tables

Schedule of statement of income by nature

The Company has chosen to disclose its statement of income by function and thus presents below the details by nature:

	12.31.17	12.31.16	12.31.15
Costs of sales
Raw materials and consumables	18,716.5	18,994.0	15,339.0
Depreciation	1,469.8	1,290.5	1,080.9
Amortization	91.9	6.0	4.5
Salaries and employees benefits	4,004.6	3,716.3	3,394.4
Others	2,282.5	2,199.6	2,288.9
	26,565.3	26,206.4	22,107.7
Sales expenses
Depreciation	65.5	64.7	55.3
Amortization	69.7	14.7	12.9
Salaries and employees benefits	1,291.2	1,200.0	1,081.8
Indirect and direct logistics expenses	2,188.8	2,124.9	2,211.0
Others	1,114.9	1,561.4	1,444.9
	4,730.1	4,965.7	4,805.9
Administrative expenses
Depreciation	41.2	24.5	20.0
Amortization	138.7	173.0	124.7
Salaries and employees benefits	269.1	265.8	301.3
Fees	31.0	28.6	26.2
Others	92.0	85.5	33.9
	572.0	577.4	506.1
Other operating expenses (1)
Depreciation	41.4	29.4	18.3
Others	1,212.2	468.4	993.0
	1,253.6	497.8	1,011.3

The composition of other operating expenses is disclosed in note 33.

XML

36. INSURANCE COVERAGE (Tables)

12 Months Ended

Dec. 31, 2017

Insurance Coverage Tables

Schedule of insurance coverage

The Company also follows the orientations provided by its advisors.

		12.31.17
Assets covered	Coverage	Amount of coverage
Operational risks	Coverage against damage to buildings, facilities, inventory, machinery and equipment, loss of profits	893.2
Carriage of goods	Coverage of goods in transit and in inventories	932.0
Civil responsability	Third party complaints	264.6

XML

1. COMPANY'S OPERATIONS (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
BRF Energia S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Commercialization of eletric energy
Country	Brazil
Participation	Direct
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Austria
Participation	Direct
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Foods LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Russia
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.90%	90.00%
BRF France SARL [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	France
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Global Company Nigeria Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	Nigeria
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.00%	99.00%
BRF Global Company South Africa Proprietary Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	South Africa
Participation	Indirect
Accounting method	Consolidated
% equity interest	1.00%	100.00%
BRF Global Company South Africa Proprietary Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding and trading
Country	Nigeria
Participation	Indirect
Accounting method	Consolidated
% equity interest	1.00%	1.00%
BRF Global GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding and trading
Country	Austria
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.00%	100.00%
BRF Foods LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Russia
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.10%
Qualy 5201 B.V. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization of products and holding
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Xamol Consultores Servicos Ltda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Portugal
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Japan KK [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	Japan
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Korea LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	Korea
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Shanghai Management Consulting Co. Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Advisory and related services
Country	China
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Shanghai Trading Co. Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Commercialization and distribution of products
Country	China
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Singapore PTE Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	Singapore
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Germany GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Germany
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF GmbH Turkiye Irtibat [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Turkey
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Holland B.V. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Campo Austral S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	2.66%	2.63%
Eclipse Holding Cooperatief U.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.01%	0.01%
BRF B.V. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization, import and commercialization of products
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
ProudFood Lda [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Angola
Participation	Indirect
Accounting method	Consolidated
% equity interest	10.00%
BRF Hungary LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Hungary
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Iberia Alimentos SL [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Spain
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Invicta Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	69.16%	62.00%
Invicta Food Products Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Wrexham Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization, import and commercialization of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Invicta Food Group Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Invicta Foods Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Invicta Foodservice Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Universal Meats (UK) Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, Industrialization, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Italia SPA [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Italy
Participation	Indirect
Accounting method	Consolidated
% equity interest	67.00%	67.00%
Compania Paraguaya Comercial S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Paraguay
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.00%	99.00%
Campo Austral S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	50.48%	50.06%
Itega S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	96.00%	96.00%
Eclipse Holding Cooperatief U.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.99%	99.99%
Buenos Aires Fortune S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	5.00%	95.00%
Eclipse Latam Holdings [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	8.44%	100.00%
Campo Austral S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Spain
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	10.61%
Buenos Aires Fortune S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	95.00%	5.00%
Campo Austral S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	6.53%	6.34%
Campo Austral S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	31.89%	30.36%
Itega S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	4.00%	4.00%
Golden Foods Poultry Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Thailand
Participation	Indirect
Accounting method	Consolidated
% equity interest	48.52%	48.52%
Golden Poultry Siam Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Thailand
Participation	Indirect
Accounting method	Consolidated
% equity interest	51.84%	51.84%
Golden Poultry Siam Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Thailand
Participation	Indirect
Accounting method	Consolidated
% equity interest	48.16%	48.16%
BRF Thailand Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, Industrialization, commercialization and distribution of products
Country	Thailand
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Feed Thailand Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, Industrialization, commercialization and distribution of products
Country	Thailand
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Golden Foods Sales (Europe) Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding and trading
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Golden Quality Foods Europe BV [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Golden Quality Foods Netherlands BV [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Golden Foods Siam Europe Limited [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Golden Quality Poultry (UK) Ltd [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	England
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Perdigao Europe Lda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and export of products
Country	Portugal
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Perdigao International Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and export of products
Country	Cayman Island
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BFF International Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Financial fundraising
Country	Cayman Island
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Highline International [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Financial fundraising
Country	Cayman Island
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Sadia Overseas Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Financial fundraising
Country	Cayman Island
Participation	Direct
Accounting method	Consolidated
% equity interest	98.00%
ProudFood Lda [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Angola
Participation	Indirect
Accounting method	Consolidated
% equity interest	90.00%
Sadia Chile S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Chile
Participation	Indirect
Accounting method	Consolidated
% equity interest	40.00%	40.00%
Sadia Foods GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Germany
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
SATS BRF Food PTE Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, industrialization, commercialization and distribution of products
Country	Singapore
Participation	Joint venture
Accounting method	Equity pick-up
% equity interest	49.00%	49.00%
BRF Global Namibia [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Namibia
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Hong Kong LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Importação, comercialização e distribuição de produtos
Country	Hong Kong
Participation	Indireta
Accounting method	Consolidado
% equity interest	100.00%	0.00%
Wellax Food Logistics C.P.A.S.U. Lda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Portugal
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Luxembourg Sarl [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Luxemburgo
Participation	Direct
Accounting method	Consolidated
% equity interest	100.00%	100.00%
BRF Austria GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Austria
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%	100.00%
One Foods Holdings Ltd [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	United Arab Emirates
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Al-Wafi Food Products Factory LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	United Arab Emirates
Participation	Indirect
Accounting method	Consolidated
% equity interest	49.00%
Badi Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	United Arab Emirates
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Al-Wafi Al-Takamol International for Foods Products [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Saudi Arabia
Participation	Indirect
Accounting method	Consolidated
% equity interest	75.00%
BRF Al Yasra Food K.S.C.C. ('BRF AFC') [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	Kuwait
Participation	Indirect
Accounting method	Consolidated
% equity interest	49.00%
BRF Foods GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization, import and commercialization of products
Country	Austria
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Al Khan Foodstuff LLC ("AKF") [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	Oman
Participation	Indirect
Accounting method	Consolidated
% equity interest	70.00%
FFM Further Processing Sdn. Bhd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization, import and commercialization of products
Country	Malaysia
Participation	Indirect
Accounting method	Consolidated
% equity interest	70.00%
SHB Comercio e Industria de Alimentos S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Brazil
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.99%
TBQ Foods GmbH [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Commercialization of products
Country	Austria
Participation	Indirect
Accounting method	Consolidated
% equity interest	60.00%
Banvit Bandirma Vitaminli [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Turkey
Participation	Indirect
Accounting method	Consolidated
% equity interest	91.71%
Banvit Enerji ve Elektrik uretim Ltd.Sti. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Commercialization of eletric energy
Country	Turkey
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Banvit Foods SRL [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization of grains and animal feed
Country	Romania
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.01%
Nutrinvestments BV [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	The Netherlands
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Banvit ME FZE [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	United Arab Emirates
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Banvit Foods SRL [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization of grains and animal feed
Country	Romania
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.99%
BRF Foods GMBH - Branch [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization, import and commercialization of products
Country	United Arab Emirates
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
BRF Malaysia Sdn Bhd [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Marketing and logistics services
Country	Malaysia
Participation	Indireta
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Federal Foods LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	United Arab Emirates
Participation	Indirect
Accounting method	Consolidated
% equity interest	49.00%
Federal Foods Oma [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	Oman
Participation	Indirect
Accounting method	Consolidated
% equity interest	49.00%	49.00%
Federal Foods Qatar [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	Qatar
Participation	Indirect
Accounting method	Consolidated
% equity interest	49.00%	49.00%
SHB Comercio e Industria de Alimentos S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Brazil
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.01%
BRF Hong Kong LLC [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import, commercialization and distribution of products
Country	Hong Kong
Participation	Indirect
Accounting method	Consolidated
% equity interest	100.00%
Establecimiento Levino Zaccardi y Cia. S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of dairy products
Country	Argentina
Participation	Direct
Accounting method	Consolidated
% equity interest	99.94%	99.94%
BRF Pet S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization and distribution of feed and nutrients for animals
Country	Brazil
Participation	Direct
Accounting method	Consolidated
% equity interest	100.00%	100.00%
PP-BIO Administracao de bem proprio S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Management of assets
Country	Brazil
Participation	Affiliate
Accounting method	Equity pick-up
% equity interest	33.33%	33.33%
PSA Laboratorio Veterinario Ltda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Veterinary activities
Country	Brazil
Participation	Direct
Accounting method	Consolidated
% equity interest	99.99%	99.99%
Sino dos Alpes Alimentos Ltda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Brazil
Participation	Indirect
Accounting method	Consolidated
% equity interest	99.99%	99.99%
PR-SAD Administracao de bem proprio S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Management of assets
Country	Brazil
Participation	Affiliate
Accounting method	Equity pick-up
% equity interest	33.33%	33.33%
Quickfood S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Direct
Accounting method	Consolidated
% equity interest	91.21%	91.21%
Quickfood Chile S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Chile
Participation	Indirect
Accounting method	Consolidated
% equity interest	95.93%	95.93%
Sadia Alimentos S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Argentina
Participation	Direct
Accounting method	Consolidated
% equity interest	43.10%	43.10%
Avex S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	33.98%	33.98%
Sadia International Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Cayman Island
Participation	Direct
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Sadia Chile S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Chile
Participation	Indirect
Accounting method	Consolidated
% equity interest	60.00%	60.00%
Sadia Uruguay S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Uruguay
Participation	Indirect
Accounting method	Consolidated
% equity interest	5.10%	5.10%
Avex S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	66.02%	66.02%
Compania Paraguaya Comercial S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Paraguay
Participation	Indirect
Accounting method	Consolidated
% equity interest	1.00%	1.00%
Sadia Alimentos S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Holding
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	56.90%	56.90%
Sadia Overseas Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Financial fundraising
Country	Cayman Island
Participation	Direct
Accounting method	Consolidated
% equity interest	2.00%	100.00%
Sadia Uruguay S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Import and commercialization of products
Country	Uruguay
Participation	Direct
Accounting method	Consolidated
% equity interest	94.90%	94.90%
UP Alimentos Ltda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Brazil
Participation	Affiliate
Accounting method	Equity pick-up
% equity interest	50.00%	50.00%
Vip S.A. Empreendimentos e Participacoes Imobiliarias [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Commercialization of owned real state
Country	Brazil
Participation	Direct
Accounting method	Consolidated
% equity interest	100.00%	100.00%
Establecimiento Levino Zaccardi y Cia. S.A. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of dairy products
Country	Argentina
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.06%	0.06%
PSA Laboratorio Veterinario Ltda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Veterinary activities
Country	Brazil
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.01%	0.01%
Sino dos Alpes Alimentos Ltda. [Member]
CompanysOperationsItemsLineItems [Line Items]
Main activity	Industrialization and commercialization of products
Country	Brazil
Participation	Indirect
Accounting method	Consolidated
% equity interest	0.01%	0.01%
BFF International Ltd. [Member]
CompanysOperationsItemsLineItems [Line Items]
% equity interest		100.00%
FFM Further Processing Sdn. Bhd. [Member]
CompanysOperationsItemsLineItems [Line Items]
% equity interest		70.00%

XML

1. COMPANY'S OPERATIONS (Details Narrative) - BRL (R$) R$ in Millions		12 Months Ended
	Apr. 15, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Aug. 11, 2017	May 25, 2017	May 24, 2017	Jan. 09, 2017
CompanysOperationsLineItems [Line Items]
Other operating income		R$ (888.2)	R$ (197.5)	R$ (444.7)
Qatar Investment Authority [Member]
CompanysOperationsLineItems [Line Items]
Percentage of voting equity interests acquired					91.71%	40.00%	40.00%	79.50%
Purchase price					R$ 1,277.7
Weak Flesh Operation
CompanysOperationsLineItems [Line Items]
Expenses recorded in operating activity	R$ 157.5
Other expenses	80.3
Inventory losses	R$ 77.2	205.9
Tax Amnesty Program [Member]
CompanysOperationsLineItems [Line Items]
Other expenses		117.8
Nominal value of debts		R$ 454.6
Monthly installments, percentage		20.00%
Recoverable taxes		R$ 640.6
Gain in other operating income		154.6
Finance income		315.5
Offsetting tax loss in other operating expenses		7.0
Additional finace expenses		13.4
Other operating income		147.7
Finance income, net		R$ 302.1

XML

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Thailand, Baht
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.1015	0.0911
Average rates	0.0942	0.0989
Kuwait, Dinars
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	10.9791	10.6751
Average rates	10.5318	11.5548
United Arab Emirates, Dirhams
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.9006	0.8875
Average rates	0.8692	0.9503
Singapore, Dollars
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	2.4753	2.2572
Average rates	2.3130	2.5261
USD
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	3.3080	3.2591
Average rates	3.1920	3.4901
Euro Member Countries, Euro
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	3.9693	3.4384
Average rates	3.6071	3.8615
Hungary, Forint
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.0128	0.0111
Average rates	0.0117	0.0124
Japan, Yen
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.0294	0.0279
Average rates	0.0285	0.0321
United Kingdom, Pounds
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	4.4714	4.0364
Average rates	4.1150	4.7464
Argentina, Pesos
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.1755	0.2056
Average rates	0.1934	0.2373
Chile, Pesos
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.0054	0.0049
Average rates	0.0049	0.0052
Uruguay, Pesos
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.1149	0.1122
Average rates	0.1115	0.1158
South Africa, Rand
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.2690	0.2379
Average rates	0.2401	0.2372
China, Yuan Renminbi
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.5087	0.4695
Average rates	0.4726	0.5261
Saudi Arabia, Riyals
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.8821	0.8689
Average rates	0.8512	0.9307
Qatar, Rials
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.9088	0.8951
Average rates	0.8727	0.9586
Oman, Rials
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	8.6011	8.4718
Average rates	8.2977	9.0721
Malaysia, Ringgits
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.8180	0.7267
Average rates	0.7435	0.8433
Rubles
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.0574	0.0534
Average rates	0.0548	0.0521
Korea (South), Won
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.0031	0.0027
Average rates	0.0028	0.003
Turkey, New Lira
SummaryOfSignificantAccountingPoliciesDetailsItemsLineItems [Line Items]
Exchange rate	0.8752	0.9258
Average rates	0.8759	1.1593

XML

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
SummaryOfSignificantAccountingPoliciesDetailsLineItems [Line Items]
WACC annual rate	12.70%	14.30%
Percentage of taxable income	15.00%
Corporate Income Tax ("IRPJ") [Member]
SummaryOfSignificantAccountingPoliciesDetailsLineItems [Line Items]
Percentage of taxable income	10.00%
Social Contribution Tax ("CSLL") [Member]
SummaryOfSignificantAccountingPoliciesDetailsLineItems [Line Items]
Percentage of taxable income	9.00%

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details) - Liquidity Risk [Member] R$ in Millions	Dec. 31, 2017 BRL (R$)
Non Derivative Financial Liabilities [Member] | Loans And Financing [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	R$ 11,410.7
Cash flow contracted	11,953.8
2018	4,533.2
2019	4,459.4
2020	1,337.1
2021	4,459.4
2022	720.7
2023 onwards	803.9
Non Derivative Financial Liabilities [Member] | BRF Bonds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	4,479.2
Cash flow contracted	5,262.4
2018	662.3
2019	143.0
2020	143.0
2021	143.0
2022	2,508.2
2023 onwards	1,663.0
Non Derivative Financial Liabilities [Member] | BFF Bonds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	292.2
Cash flow contracted	336.4
2018	20.6
2019	20.6
2020	295.1
2021
2022
2023 onwards
Non Derivative Financial Liabilities [Member] | BRF GMBH Bonds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	1,628.9
Cash flow contracted	2,301.5
2018	71.9
2019	71.9
2020	71.9
2021	71.9
2022	71.9
2023 onwards	1,941.8
Non Derivative Financial Liabilities [Member] | Quickfood Bonds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	168.0
Cash flow contracted	265.9
2018	57.5
2019	89.5
2020	60.6
2021	43.6
2022	14.7
2023 onwards
Non Derivative Financial Liabilities [Member] | SHB bonds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	2,465.4
Cash flow contracted	3,247.0
2018	117.8
2019	117.8
2020	117.8
2021	117.8
2022	117.8
2023 onwards	2,657.8
Non Derivative Financial Liabilities [Member] | Trade Accounts Payable [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	6,445.5
Cash flow contracted	6,445.5
2018	6,445.5
2019
2020
2021
2022
2023 onwards
Non Derivative Financial Liabilities [Member] | Supply Chain Finance [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	715.2
Cash flow contracted	715.2
2018	715.2
2019
2020
2021
2022
2023 onwards
Non Derivative Financial Liabilities [Member] | Financial Lease [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	232.6
Cash flow contracted	352.8
2018	72.5
2019	63.5
2020	45.4
2021	29.4
2022	24.4
2023 onwards	117.6
Non Derivative Financial Liabilities [Member] | Operational Lease [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value
Cash flow contracted	655.6
2018	374.9
2019	76.8
2020	44.6
2021	34.5
2022	31.7
2023 onwards	93.0
Derivative Financial Liabilities [Member] | BRF Bonds [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	166.3
Cash flow contracted	166.4
2018	166.1
2019	0.3
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Currency Derivatives (NDF) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	6.8
Cash flow contracted	10.3
2018	10.3
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Currency Derivatives (NDF) [Member] | Not Designated As Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	2.0
Cash flow contracted	9.4
2018	9.4
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Commodities derivatives - Corn (NDF) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	4.6
Cash flow contracted	5.0
2018	5.0
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Commodities derivatives - Soybean Meal (NDF) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	3.0
Cash flow contracted	3.0
2018	3.0
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Commodities derivatives - Soybean Oil (NDF) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	0.1
Cash flow contracted	0.1
2018	0.1
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Currency Derivatives (Options) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	25.9
Cash flow contracted	0.5
2018	0.5
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Commodities derivatives - Corn (NDF) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	0.6
Cash flow contracted
2018
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Commodities derivatives - Soybean (Options) [Member] | Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	1.5
Cash flow contracted	0.2
2018	0.2
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Currency Derivatives (Future) [Member] | Not Designated As Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	0.2
Cash flow contracted	0.2
2018	0.2
2019
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Swap (Index / Currency / Stocks) [Member] | Not Designated As Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	86.5
Cash flow contracted	86.4
2018	57.6
2019	28.8
2020
2021
2022
2023 onwards
Derivative Financial Liabilities [Member] | Commodities Derivatives (Future) [Member] | Not Designated As Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Book value	2.0
Cash flow contracted
2018
2019
2020
2021
2022
2023 onwards

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 1) - Foreign Exchange Risk [Member] - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	R$ 55.4	R$ (598.3)
Cash And Cash Equivalents [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	278.1	27.7
Trade Receivables [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	862.2	1,512.4
Trade Accounts Payable [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	31.4	(707.3)
Loans And Financing [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	(6,136.4)	(5,425.2)
Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	3,049.7	3,477.7
Investments,Net [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	1,985.7	441.8
Other Assets And Liabilities, Net [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Exposure in result	R$ (15.3)	R$ 74.8

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 2) ₺ in Millions, ¥ in Millions, £ in Millions, R$ in Millions, Br in Millions, $ in Millions, $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2017 BRL (R$)	Dec. 31, 2017 GBP (£)	Dec. 31, 2017 ARS ($)	Dec. 31, 2017 BYR (Br)	Dec. 31, 2017 JPY (¥)	Dec. 31, 2017 TRY (₺)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 BRL (R$)	Dec. 31, 2016 GBP (£)	Dec. 31, 2016 ARS ($)	Dec. 31, 2016 BYR (Br)	Dec. 31, 2016 JPY (¥)	Dec. 31, 2016 TRY (₺)
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		R$ 55.4							R$ (598.3)
Argentine Pesos
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | $				$ 1,066.3							$ 497.6
Argentine Pesos
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		187.1							102.3
Euro Member Countries, Euro
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		(41.0)							26.6
Euro Member Countries, Euro
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		(162.8)							91.4
Pound Sterling
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | £			£ 2.9							£ 12.1
Pound Sterling
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		13.1							48.9
Yen
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | ¥						¥ 1,309.7							¥ 2,953.8
Yen
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		38.5							82.5
Rubles
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | Br					Br 1,334.3
Rubles
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		76.6
Turkish Liras
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | ₺							₺ (391.2)
Turkey, New Lira [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure		R$ (342.4)
USD
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | $	$ 74.2							$ (283.3)
USD
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Net P&L Exposure | $	$ 245.3							$ (923.3)

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 3) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
FinancialInstrumentsAndRiskManagementLineItems [Line Items]
Foreign currency debt - Current		R$ 1,257.1
Foreign currency debt - Noncurrent		9,061.6
Foreign currency debt		10,318.7
Local currency debt		1,987.9
Local currency debt		6,655.8
Local currency debt		8,643.7
Other financial liabilities	R$ 602.6	399.7
Other financial liabilities	1,321.5	837.3
Gross debt	5,031.4	3,245.0
Gross debt	15,413.0	15,717.4
Gross debt	20,444.4	18,962.4
Other financial assets	961.1	559.2
Other financial assets	87.2	149.6
Restricted cash	127.8	218.3
Restricted cash	407.8	427.6
Capital Management [Member]
FinancialInstrumentsAndRiskManagementLineItems [Line Items]
Foreign currency debt - Current	(1,438.6)
Foreign currency debt - Noncurrent	(9,662.8)
Foreign currency debt	(11,101.3)	(10,318.7)
Local currency debt	(3,592.8)
Local currency debt	(5,750.3)
Local currency debt	(9,343.0)	(8,643.6)
Other financial liabilities	(299.5)
Other financial liabilities
Other financial liabilities	(299.5)	(529.6)
Gross debt	(5,330.9)
Gross debt	(15,413.1)
Gross debt	(20,743.8)	(19,491.9)
Marketable securities and cash and cash equivalents	6,239.3
Marketable securities and cash and cash equivalents	568.8
Marketable securities and cash and cash equivalents	6,808.1	7,506.9
Other financial assets	90.5
Other financial assets
Other financial assets	90.5	198.0
Restricted cash	127.8
Restricted cash	407.8
Restricted cash	535.6	645.9
Net debt	1,126.7
Net debt	(14,436.5)
Net debt	R$ (13,309.6)	R$ (11,141.1)

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 4) - BRL (R$)
R$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Fair value

^[1]

R$ (209.0)

R$ (331.5)

Designated as Hedging Instrument [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Fair value

^[1]

R$ (181.4)

(25.2)

Designated as Hedging Instrument [Member] | NDF - Dollar Sale [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 208.4

106.9

Fair value

^[1]

R$ (3.7)

6.6

Designated as Hedging Instrument [Member] | NDF - Euro Sale [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

EUR

Reference value (notional)

R$ 15.0

145.0

Fair value

^[1]

R$ (0.6)

56.9

Designated as Hedging Instrument [Member] | NDF - Pound Sterling Sale [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

GBP

Reference value (notional)

R$ 25.0

34.0

Fair value

^[1]

R$ (0.9)

11.1

Designated as Hedging Instrument [Member] | Currency Swap - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

BRL

Reference value (notional)

R$ 250.0

250.0

Fair value

^[1]

R$ (150.8)

(153.2)

Designated as Hedging Instrument [Member] | Interest Rate Swap - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$ 

Reference value (notional)

R$ 100.0

200.0

Fair value

^[1]

R$ (2.5)

(11.3)

Designated as Hedging Instrument [Member] | Options - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 361.8

1,322.0

Fair value

^[1]

R$ (2.6)

66.8

Designated as Hedging Instrument [Member] | Options - Euro [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

EUR

Reference value (notional)

80.0

Fair value

^[1]

16.9

Designated as Hedging Instrument [Member] | NDF - Corn Purchase [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

Ton/US$

Reference value (notional)

R$ 598.5

85.0

Fair value

^[1]

R$ (7.5)

(0.9)

Designated as Hedging Instrument [Member] | NDF - Corn Sale [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

Ton/US$

Reference value (notional)

R$ 77.7

308.6

Fair value

^[1]

R$ 1.8

1.8

Designated as Hedging Instrument [Member] | Future - BM&Fbovespa [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

Ton/US$

Reference value (notional)

R$ 99.1

32.0

Fair value

^[1]

R$ 0.3

Designated as Hedging Instrument [Member] | Options (Collar) - Commodities [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

Ton/US$

Reference value (notional)

R$ 49.9

Fair value

^[1]

R$ (1.5)

Designated as Hedging Instrument [Member] | Interest Rate Swap - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 200.0

200.0

Fair value

^[1]

R$ (10.8)

(22.0)

Designated as Hedging Instrument [Member] | NDF - Dollar Sale [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 80.0

Fair value

^[1]

R$ (0.4)

Designated as Hedging Instrument [Member] | Options - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 40.0

Fair value

^[1]

R$ 0.2

Designated as Hedging Instrument [Member] | Fixed Exchange Rate - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

0.8

Fair value

^[1]

(0.1)

Designated as Hedging Instrument [Member] | Fixed Exchange Rate - Euro [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

EUR

Reference value (notional)

6.6

Fair value

^[1]

(0.2)

Designated as Hedging Instrument [Member] | Fixed Exchange Rate - Pound Sterling [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

GBP

Reference value (notional)

6.6

Fair value

^[1]

Not Designated as Hedging Instrument [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Fair value

^[1]

R$ (27.6)

(306.3)

Not Designated as Hedging Instrument [Member] | Currency Swap - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 50.0

222.0

Fair value

^[1]

R$ 1.3

(200.8)

Not Designated as Hedging Instrument [Member] | Future - BM&Fbovespa [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 36.0

150.0

Fair value

^[1]

R$ (0.2)

(5.2)

Not Designated as Hedging Instrument [Member] | NDF - Purchase of US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 800.0

680.0

Fair value

^[1]

R$ (2.0)

(82.5)

Not Designated as Hedging Instrument [Member] | NDF - Purchase of Euro [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

EUR

Reference value (notional)

R$ 30.0

Fair value

^[1]

R$ 0.2

Not Designated as Hedging Instrument [Member] | Currency swap - Euro [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

EUR

Reference value (notional)

13.8

Fair value

^[1]

(17.7)

Not Designated as Hedging Instrument [Member] | Interest rate - R$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

BRL

Reference value (notional)

R$ 549.0

50.0

Fair value

^[1]

R$ 23.9

0.4

Not Designated as Hedging Instrument [Member] | Interest rate - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 8.3

Fair value

^[1]

Not Designated as Hedging Instrument [Member] | Stock Swap [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

^[2]

BRL

Reference value (notional)

^[2]

R$ 510.1

Fair value

^[1],[2]

R$ (86.4)

Not Designated as Hedging Instrument [Member] | NDF - Purchase of Euro [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

EUR

Reference value (notional)

R$ 550.0

300.0

Fair value

^[1]

R$ 36.2

(0.5)

Not Designated as Hedging Instrument [Member] | Options -Turkish Lira [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

R$ 50.0

Fair value

^[1]

R$ (0.6)

Not Designated as Hedging Instrument [Member] | Fixed Exchange Rate - US$ [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Reference currency (notional)

US$

Reference value (notional)

0.8

Fair value

^[1]

[1] The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

[2] Total Return Swap asset in BRF's stocks and liability in percentage of CDI.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 5)
R$ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2017

USD ($)

Dec. 31, 2017

BRL (R$)

Dec. 31, 2016

BRL (R$)

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value | R$

^[1]

R$ (209.0)

R$ (331.5)

Designated as Cash Flow Hedge [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value | R$

(2.6)

Not Designated As Cash Flow Hedge [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value | R$

R$ (0.6)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Jan-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

January 2018

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Jan-18 [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 130.0

Average rate

3.2891

3.2891

Fair value

$ (3.2)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Jan-18 [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 15.0

Average rate

3.9244

3.9244

Fair value

$ (0.6)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Jan-18 [Member] | United Kingdom, Pounds

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 10.0

Average rate

4.3710

4.3710

Fair value

$ (0.9)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Feb-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

February 2018

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Feb-18 [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 78.4

Average rate

3.3128

3.3128

Fair value

$ (0.5)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Feb-18 [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

Average rate

0.0000

0.0000

Fair value

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Feb-18 [Member] | United Kingdom, Pounds

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 15.0

Average rate

4.4690

4.4690

Fair value

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 208.4

Average rate

3.2980

3.2980

Fair value

$ (3.7)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 15.0

Average rate

3.9244

3.9244

Fair value

$ (0.6)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option [Member] | United Kingdom, Pounds

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 25.0

Average rate

4.4298

4.4298

Fair value

$ (0.9)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Jan-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

January 2018

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Jan-18 [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 20.0

Average rate

3.3238

3.3238

Fair value

$ 0.2

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Feb-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

February 2018

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Feb-18 [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 40.0

Average rate

3.3059

3.3059

Fair value

$ (0.7)

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Mar-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

March 2018

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option Maturity On Mar-18 [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 20.0

Average rate

3.3340

3.3340

Fair value

Currency Non-Deliverable Forwards [Member] | Designated as Cash Flow Hedge [Member] | Short Option [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 80.0

Average rate

3.3174

3.3174

Fair value

$ (0.4)

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option Maturity On Mar-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

March 2018

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option Maturity On Mar-18 [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 800.0

Average rate

3.3381

3.3381

Fair value

$ (2.0)

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option Maturity On Mar-18 [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 30.0

Average rate

4.0000

4.0000

Fair value

$ 0.2

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option [Member] | USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 800.0

Average rate

3.3381

3.3381

Fair value

$ (2.0)

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 30.0

Average rate

4.0000

4.0000

Fair value

$ 0.2

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option Maturity On Mar-18 [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturities

March 2018

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option Maturity On Mar-18 [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 550.0

Average rate

1.1817

1.1817

Fair value

$ 36.2

Currency Non-Deliverable Forwards [Member] | Not Designated As Cash Flow Hedge [Member] | Long Option [Member] | Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

$ 550.0

Average rate

1.1817

1.1817

Fair value

$ 36.2

[1] The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 6)
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

T

Dec. 31, 2016

BRL (R$)

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Fair value

^[1]

R$ (209.0)

R$ (331.5)

Designated as Hedging Instrument [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Fair value

^[1]

R$ (181.4)

R$ (25.2)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Quantity Ton | T

92.0

Average rate US$/Ton

130.65

Fair value

R$ (3.0)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member] | April 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

April 2018

Quantity Ton | T

10.0

Average rate US$/Ton

131.80

Fair value

R$ (0.5)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member] | June 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

June 2018

Quantity Ton | T

43.0

Average rate US$/Ton

131.71

Fair value

R$ (1.7)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member] | July 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

July 2018

Quantity Ton | T

13.0

Average rate US$/Ton

129.43

Fair value

R$ (0.2)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member] | August 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

August 2018

Quantity Ton | T

8.0

Average rate US$/Ton

129.82

Fair value

R$ (0.2)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member] | September 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

September 2018

Quantity Ton | T

8.0

Average rate US$/Ton

128.74

Fair value

R$ (0.2)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Meal (NDF) [Member] | November 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

November 2018

Quantity Ton | T

10.0

Average rate US$/Ton

128.74

Fair value

R$ (0.2)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Corn (NDF) [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Quantity Ton | T

491.6

Average rate US$/Ton

146.42

Fair value

R$ (4.5)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Corn (NDF) [Member] | April 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

April 2018

Quantity Ton | T

320.0

Average rate US$/Ton

145.12

Fair value

R$ (4.0)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Corn (NDF) [Member] | August 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

August 2018

Quantity Ton | T

20.0

Average rate US$/Ton

148.40

Fair value

R$ (0.1)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Corn (NDF) [Member] | November 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

November 2018

Quantity Ton | T

80.0

Average rate US$/Ton

152.38

Fair value

R$ (0.3)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Corn (NDF) [Member] | February 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

February 2018

Quantity Ton | T

36.6

Average rate US$/Ton

138.10

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Corn (NDF) [Member] | December 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

December 2018

Quantity Ton | T

35.0

Average rate US$/Ton

152.26

Fair value

R$ (0.1)

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Quantity Ton | T

15.0

Average rate US$/Ton

737.02

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | April 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

April 2018

Quantity Ton | T

3.0

Average rate US$/Ton

733.33

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | June 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

June 2018

Quantity Ton | T

2.0

Average rate US$/Ton

745.16

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | July 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

July 2018

Quantity Ton | T

1.0

Average rate US$/Ton

744.50

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | August 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

August 2018

Quantity Ton | T

1.0

Average rate US$/Ton

744.94

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | September 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

September 2018

Quantity Ton | T

2.0

Average rate US$/Ton

741.63

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | November 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

November 2018

Quantity Ton | T

3.0

Average rate US$/Ton

732.74

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Long [Member] | Soybean Oil (NDF) [Member] | February 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

February 2018

Quantity Ton | T

3.0

Average rate US$/Ton

731.33

Fair value

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Short [Member] | Corn (NDF) [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Quantity Ton | T

54.7

Average rate US$/Ton

149.61

Fair value

R$ 0.7

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Short [Member] | Corn (NDF) [Member] | June 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

June 2018

Quantity Ton | T

33.7

Average rate US$/Ton

149.87

Fair value

R$ 0.6

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Short [Member] | Corn (NDF) [Member] | August 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

August 2018

Quantity Ton | T

21.0

Average rate US$/Ton

149.19

Fair value

R$ 0.1

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Short [Member] | Soybean (NDF) [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Quantity Ton | T

23.0

Average rate US$/Ton

367.26

Fair value

R$ 1.1

Commodities Non-Deliverable Forwards [Member] | Designated as Hedging Instrument [Member] | Short [Member] | Soybean (NDF) [Member] | February 2018 [Member]

Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]

Maturities

February 2018

Quantity Ton | T

23.0

Average rate US$/Ton

367.26

Fair value

R$ 1.1

[1] The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 7) - BRL (R$)
R$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value

^[1]

R$ (209.0)

R$ (331.5)

Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

06.18.18

Assets (Hedged object)

LIBOR 3M + 2.60% p.a.

Liabilities (Protected risk)

5.47% p.a.

Notional

R$ 100.0

Fair value

R$ (2.5)

Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

02.01.19

Assets (Hedged object)

LIBOR 6M + 2.70% p.a.

Liabilities (Protected risk)

5.90% p.a.

Notional

R$ 100.0

Fair value

R$ (5.4)

Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

02.01.19

Assets (Hedged object)

LIBOR 6M + 2.70% p.a.

Liabilities (Protected risk)

5.88% p.a.

Notional

R$ 100.0

Fair value

R$ (5.4)

Designated as Cash Flow Hedge [Member] | Currency Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

05.22.18

Assets (Hedged object)

R$ + 7.75%

Liabilities (Protected risk)

US$ + 1.60%

Notional

R$ 250.0

Fair value

(153.0)

Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Notional

300.0

Fair value

(13.3)

Designated as Cash Flow Hedge [Member] | Interest Rate & Currency Swap[Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value

R$ (166.3)

Not Designated as Cash Flow Hedge [Member] | Currency Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

04.12.19

Assets (Hedged object)

US$ + 2,67% p.a.

Liabilities (Protected risk)

110.91% CDI

Notional

R$ 50.0

Fair value

1.3

Not Designated as Cash Flow Hedge [Member] | Interest Rate & Currency Swap[Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value

R$ (61.3)

Not Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

01.22.18

Assets (Hedged object)

LIBOR 6M + 2.82% p.a.

Liabilities (Protected risk)

5.86% p.a.

Notional

R$ 8.3

Fair value

Not Designated as Cash Flow Hedge [Member] | Interest rate - Bond

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

05.22.18

Assets (Hedged object)

R$ (Fixed rate of 7.75% p.a.)

Liabilities (Protected risk)

68.84% CDI

Notional

R$ 50.0

Fair value

R$ 0.5

Not Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

04.02.19

Assets (Hedged object)

R$ (Fixed rate of 9.61% p.a.)

Liabilities (Protected risk)

95.00% CDI

Notional

R$ 250.0

Fair value

R$ 11.5

Not Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

04.02.19

Assets (Hedged object)

R$ (Fixed rate of 9.61% p.a.)

Liabilities (Protected risk)

93.54% CDI

Notional

R$ 249.0

Fair value

R$ 11.9

Not Designated as Cash Flow Hedge [Member] | Stock Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Maturity

02.05.19

Assets (Hedged object)

BRFS3

Liabilities (Protected risk)

110.00% CDI

Notional

R$ 510.1

Fair value

(86.4)

Not Designated as Cash Flow Hedge [Member] | Interest Rate [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Fair value

R$ 23.9

[1] The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 8)
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

T

Dec. 31, 2016

BRL (R$)

Disclosure of detailed information about hedges [line items]

Fair value

^[1]

R$ (209.0)

R$ (331.5)

Designated as Cash Flow Hedge [Member] | USD

Disclosure of detailed information about hedges [line items]

Fair value

(2.6)

Designated as Cash Flow Hedge [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Fair value

R$ (1.6)

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Jan-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

January 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Jan-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (60.0)

Average US$

3.4500

Fair value

R$ (2.0)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Jan-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

January 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Jan-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 60.0

Average US$

3.1900

Fair value

R$ 0.9

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Feb-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

February 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Feb-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (61.8)

Average US$

3.3660

Fair value

R$ (3.2)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Feb-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

February 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Feb-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 61.8

Average US$

3.2501

Fair value

R$ 2.2

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Mar-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

March 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Mar-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (100.0)

Average US$

3.4074

Fair value

R$ (5.6)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Mar-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

March 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Mar-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 100.0

Average US$

3.2894

Fair value

R$ 6.0

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Apr-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

April 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Apr-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (40.0)

Average US$

3.4393

Fair value

R$ (2.6)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Apr-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

April 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Apr-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 40.0

Average US$

3.3025

Fair value

R$ 3.0

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On June-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On June-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (40.0)

Average US$

3.4745

Fair value

R$ (3.3)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On June-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On June-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 40.0

Average US$

3.2250

Fair value

R$ 2.3

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On July-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

July 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On July-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (20.0)

Average US$

3.4930

Fair value

R$ (1.9)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On July-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

July 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On July-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 20.0

Average US$

3.3100

Fair value

R$ 2.0

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Aug-17 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

August 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Aug-17 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (20.0)

Average US$

3.5280

Fair value

R$ (2.0)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Aug-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

August 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Aug-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 20.0

Average US$

3.2900

Fair value

R$ 1.9

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Sep-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

September 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Sep-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (20.0)

Average US$

3.5380

Fair value

R$ (2.2)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Sep-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

September 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Sep-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 20.0

Average US$

3.2800

Fair value

R$ 1.9

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Apr-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

April 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On Apr-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (20.0)

Average US$

3.4500

Fair value

R$ (1.3)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Apr-17 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

April 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On Apr-17 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 20.0

Average US$

3.2600

Fair value

R$ 1.1

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On June-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Designated as Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On June-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (20.0)

Average US$

3.4857

Fair value

R$ (1.7)

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On June-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Designated as Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On June-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 20.0

Average US$

3.3300

Fair value

R$ 2.1

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On Feb-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

February 2018

Quantity Ton | T

10

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On Feb-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

142.91

Fair value

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On Feb-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

February 2018

Quantity Ton | T

(10)

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On Feb-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

122.04

Fair value

R$ (0.2)

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On Apr-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

April 2018

Quantity Ton | T

20

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On Apr-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

146.65

Fair value

R$ 0.1

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On Apr-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

April 2018

Quantity Ton | T

(20)

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On Apr-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

125.39

Fair value

R$ (0.7)

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On June-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Quantity Ton | T

10

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On June-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

145.07

Fair value

R$ 0.2

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On June-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Quantity Ton | T

(10)

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On June-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

126.18

Fair value

R$ (0.5)

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On July-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

July 2018

Quantity Ton | T

10

Designated as Cash Flow Hedge [Member] | Collar - Call (Purchase) Maturity On July-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

141.14

Fair value

R$ 0.2

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On July-18 [Member] | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Maturities

July 2018

Quantity Ton | T

(10)

Designated as Cash Flow Hedge [Member] | Collar - Put (Sale) Maturity On July-18 [Member] | USD | Soybean Meal (NDF) [Member]

Disclosure of detailed information about hedges [line items]

Average US$

129.72

Fair value

R$ (0.7)

Not Designated As Cash Flow Hedge [Member] | USD

Disclosure of detailed information about hedges [line items]

Fair value

R$ (0.6)

Not Designated As Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On June-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Not Designated As Cash Flow Hedge [Member] | Collar - Call (Sale) Maturity On June-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ (50.0)

Average US$

4.4342

Fair value

R$ (2.0)

Not Designated As Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On June-18 [Member]

Disclosure of detailed information about hedges [line items]

Maturities

June 2018

Not Designated As Cash Flow Hedge [Member] | Collar - Put (Purchase) Maturity On June-18 [Member] | USD

Disclosure of detailed information about hedges [line items]

Notional (US$)

R$ 50.0

Average US$

3.6960

Fair value

R$ 1.4

[1] The fair value determination method used by the Company consists of calculating the future value based on the contracted conditions and determining the present value based on market curves, obtained from the database of Bloomberg, Reuters, Brazil Central Bank and B3.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 9) - Designated as Cash Flow Hedge [Member] - BRL (R$)
R$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Value (notional)

R$ 477.0

R$ 568.7

Fair value

^[1]

R$ 1,679.5

1,954.9

Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Hedge object

Exchange

Reference currency (notional)

USD

Value (notional)

R$ 208.3

300.0

Fair value

^[1]

R$ 689.2

977.7

Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Hedge object

Exchange

Reference currency (notional)

USD

Value (notional)

R$ 268.7

268.7

Fair value

^[1]

R$ 990.3

R$ 977.2

[1] Reference value converted by the Ptax rate at the end of the period or partial revocation dates. This amount shows the total that may impact the Company's shareholders' equity.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 10) - Designated as Cash Flow Hedge [Member]
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

Dec. 31, 2016

BRL (R$)

FinancialInstrumentsAndRiskManagementLineItems [Line Items]

Value (notional)

R$ 477.0

R$ 568.7

Fair value

^[1]

R$ 1,679.5

1,954.9

Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementLineItems [Line Items]

Type of risk hedged

US$ (E.R.)

Maturities

01.2018 to 02.2019

Value (notional)

R$ 208.3

300.0

Average rate

1.8643

Fair value

^[1]

R$ 689.2

R$ 977.7

[1] Reference value converted by the Ptax rate at the end of the period or partial revocation dates. This amount shows the total that may impact the Company's shareholders' equity.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 11) - Designated as Cash Flow Hedge [Member]
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

Dec. 31, 2016

BRL (R$)

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Value (notional)

R$ 477.0

R$ 568.7

Fair value

^[1]

1,679.5

1,954.9

Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Value (notional)

R$ 268.7

268.7

Average rate

2.0310

Fair value

^[1]

R$ 990.3

R$ 977.2

Senior Unsecured Notes - Bonds [Member] | BRF SA BRFSBZ5

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Type of risk hedged

US$ (E.R.)

Maturities

06.2022

Value (notional)

R$ 118.7

Average rate

2.0213

Fair value

^[1]

R$ 494.1

Senior Unsecured Notes - Bonds [Member] | BRF SA BRFSBZ3

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Type of risk hedged

US$ (E.R.)

Maturities

05.2023

Value (notional)

R$ 150.0

Average rate

2.0387

Fair value

^[1]

R$ 496.2

[1] Reference value converted by the Ptax rate at the end of the period or partial revocation dates. This amount shows the total that may impact the Company's shareholders' equity.

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 12) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Gross losses	R$ (863.7)	R$ (863.7)
Deferred taxes on losses	(3.8)	272.7	R$ (346.4)
OCI recognized by subsidiaries
Losses, net of taxes	(572.2)	(576.0)
Change in gross losses		820.0
Income taxes on financial instruments adjustments	3.8	(272.7)
OCI recognized by subsidiaries
Impact in other comprehensive income	287.7	547.3
Designated as Cash Flow Hedge [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Derivatives designated as cash flow hedges	(181.6)	(51.7)
Designated as Cash Flow Hedge [Member] | Foreign Exchange Risks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Derivatives designated as cash flow hedges	(162.5)	(29.2)
Non derivatives designated as cash flow hedges	(682.1)	(812.0)
Designated as Cash Flow Hedge [Member] | Interest Risks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Derivatives designated as cash flow hedges	(8.5)	(25.9)
Designated as Cash Flow Hedge [Member] | Commodity Risks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Derivatives designated as cash flow hedges	R$ (10.6)	R$ 3.4

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 13) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about hedges [line items]
Assets amortized cost	R$ 630.8	R$ 1,092.5
Liabilities amortized cost	(208.8)	(529.6)
Liabilities fair value	(16,310.2)
Total assets and liabilities		(14,696.4)
Trade Accounts Payable [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(6,445.5)	(5,839.8)
Supply Chain Finance [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(715.2)	(1,335.6)
Local Currency [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(9,343.0)	(8,643.7)
Foreign Currency [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(11,101.3)	(10,318.7)
Finance Lease Payable [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(232.6)	(216.8)
Loans and Financing - NCE [Member]
Disclosure of detailed information about hedges [line items]
Liabilities fair value
Financial Liabilities [Member]
Disclosure of detailed information about hedges [line items]
Liabilities fair value	(27,837.6)
Total assets and liabilities		(26,354.6)
Financial Liabilities [Member] | Trade Accounts Payable [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(6,445.5)	(5,839.8)
Financial Liabilities [Member] | Supply Chain Finance [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(715.2)	(1,335.6)
Financial Liabilities [Member] | Local Currency [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(9,343.0)	(8,643.7)
Financial Liabilities [Member] | Foreign Currency [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(11,101.3)	(10,318.7)
Financial Liabilities [Member] | Finance Lease Payable [Member]
Disclosure of detailed information about hedges [line items]
Liabilities amortized cost	(232.6)	(216.8)
Financial Liabilities [Member] | Loans and Financing - NCE [Member]
Disclosure of detailed information about hedges [line items]
Liabilities fair value
Cash and Bank Accounts [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	1,670.1	1,730.4
Cash Equivalents [Member]
Disclosure of detailed information about hedges [line items]
Assets fair value	4,340.7	4,626.5
Marketable Securities [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	257.0	255.5
Assets fair value	540.3	894.5
Restricted Cash [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	535.6	645.8
Trade Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	3,925.3	3,095.8
Other Credits [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	229.5	335.5
Other Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	28.9	74.2
Loans & Receivables [Member]
Disclosure of detailed information about hedges [line items]
Liabilities fair value	5,853.8
Total assets and liabilities		5,235.9
Loans & Receivables [Member] | Cash and Bank Accounts [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	1,670.1	1,730.4
Loans & Receivables [Member] | Cash Equivalents [Member]
Disclosure of detailed information about hedges [line items]
Assets fair value
Loans & Receivables [Member] | Marketable Securities [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Assets fair value
Loans & Receivables [Member] | Restricted Cash [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Loans & Receivables [Member] | Trade Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	3,925.3	3,095.8
Loans & Receivables [Member] | Other Credits [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	229.5	335.5
Loans & Receivables [Member] | Other Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	229.5	74.2
Loans & Receivables [Member] | Cash Equivalents [Member]
Disclosure of detailed information about hedges [line items]
Assets fair value
Available For Sale [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	344.2	623.3
Liabilities fair value	344.3
Total assets and liabilities		623.3
Available For Sale [Member] | Cash and Bank Accounts [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Available For Sale [Member] | Cash Equivalents [Member]
Disclosure of detailed information about hedges [line items]
Assets fair value
Available For Sale [Member] | Marketable Securities [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Assets fair value	344.3	623.3
Available For Sale [Member] | Restricted Cash [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Available For Sale [Member] | Trade Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Available For Sale [Member] | Other Credits [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Available For Sale [Member] | Other Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Trading Securities [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	196.0	271.2
Liabilities fair value	4,536.7
Total assets and liabilities		4,897.7
Trading Securities [Member] | Cash and Bank Accounts [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Trading Securities [Member] | Cash Equivalents [Member]
Disclosure of detailed information about hedges [line items]
Assets fair value	4,340.7	4,626.5
Trading Securities [Member] | Marketable Securities [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Assets fair value	196.0	271.2
Trading Securities [Member] | Restricted Cash [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Trading Securities [Member] | Trade Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Trading Securities [Member] | Other Credits [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Trading Securities [Member] | Other Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Held To Maturity [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	797.2	1,150.0
Liabilities fair value	792.6
Total assets and liabilities		901.3
Held To Maturity [Member] | Cash and Bank Accounts [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Held To Maturity [Member] | Marketable Securities [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	257.0	255.5
Held To Maturity [Member] | Restricted Cash [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost	535.6	645.8
Held To Maturity [Member] | Trade Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Held To Maturity [Member] | Other Credits [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost
Held To Maturity [Member] | Other Receivables [Member]
Disclosure of detailed information about hedges [line items]
Assets amortized cost

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 14) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	R$ 630.8	R$ 1,092.5
Financial liabilities	(208.8)	(529.6)
Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities	(90.7)	(222.8)
Not Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities	(299.5)	(306.8)
Available For Sale [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	344.2	623.3
Available For Sale [Member] | Credit Linked Notes [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	15.4	187.4
Available For Sale [Member] | Public securities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets		56.4
Available For Sale [Member] | Stocks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	328.8	379.5
Held To Maturity [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	797.2	1,150.0
Held To Maturity [Member] | Financial Treasury Bills [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	166.3	180.5
Held To Maturity [Member] | Investment funds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	29.7	42.3
Other financial assets [Member] | Not Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	63.1	0.5
Level 1 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	540.2	846.1
Financial liabilities
Level 1 [Member] | Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	27.5	197.5
Level 1 [Member] | Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities
Level 1 [Member] | Not Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities
Level 1 [Member] | Available For Sale [Member] | Credit Linked Notes [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	15.4	187.4
Level 1 [Member] | Available For Sale [Member] | Public securities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets		56.4
Level 1 [Member] | Available For Sale [Member] | Stocks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	328.8	379.5
Level 1 [Member] | Held To Maturity [Member] | Financial Treasury Bills [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	166.3	180.5
Level 1 [Member] | Held To Maturity [Member] | Investment funds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	29.7	42.3
Level 1 [Member] | Held To Maturity [Member] | Bank deposit certificates [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 1 [Member] | Other financial assets [Member] | Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 1 [Member] | Other financial assets [Member] | Not Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 2 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	90.6	246.4
Financial liabilities	(208.8)	(529.6)
Level 2 [Member] | Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities	(90.7)	(222.8)
Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities	(299.5)	(306.8)
Level 2 [Member] | Available For Sale [Member] | Credit Linked Notes [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Financial liabilities
Level 2 [Member] | Available For Sale [Member] | Public securities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 2 [Member] | Available For Sale [Member] | Stocks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 2 [Member] | Held To Maturity [Member] | Financial Treasury Bills [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 2 [Member] | Held To Maturity [Member] | Investment funds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 2 [Member] | Other financial assets [Member] | Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	27.5	0.5
Level 2 [Member] | Other financial assets [Member] | Not Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets	63.1	197.5
Level 3 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Financial liabilities
Level 3 [Member] | Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities
Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Other Financial Liabilities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial liabilities
Level 3 [Member] | Available For Sale [Member] | Credit Linked Notes [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 3 [Member] | Available For Sale [Member] | Public securities [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 3 [Member] | Available For Sale [Member] | Stocks [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 3 [Member] | Held To Maturity [Member] | Financial Treasury Bills [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 3 [Member] | Held To Maturity [Member] | Investment funds [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 3 [Member] | Other financial assets [Member] | Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets
Level 3 [Member] | Other financial assets [Member] | Not Designated as Hedging Instrument [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Financial assets

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 15) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (16,310.2)
Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	(9,033.7)	R$ (8,996.5)
Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (8,911.1)	(9,027.3)
BRF Bonds [Member] | BRF SA BRFSBZ5 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2022
BRF Bonds [Member] | BRF SA BRFSBZ5 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (369.6)	(364.0)
BRF Bonds [Member] | BRF SA BRFSBZ5 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (406.7)	(415.1)
BRF Bonds [Member] | BRF SA BRFSBZ4 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2024
BRF Bonds [Member] | BRF SA BRFSBZ4 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total		(2,424.1)
BRF Bonds [Member] | BRF SA BRFSBZ4 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total		(2,404.4)
BRF Bonds [Member] | BRF SA BRFSBZ3 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2023
BRF Bonds [Member] | BRF SA BRFSBZ3 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (1,608.3)	(1,568.1)
BRF Bonds [Member] | BRF SA BRFSBZ3 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (1,578.7)	(1,567.4)
BRF Bonds [Member] | BRF SA BRFSBZ7 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2018
BRF Bonds [Member] | BRF SA BRFSBZ7 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (503.8)	(502.9)
BRF Bonds [Member] | BRF SA BRFSBZ7 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (502.4)	(475.9)
BRF Bonds [Member] | BRF SA BRFSBZ2 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2022
BRF Bonds [Member] | BRF SA BRFSBZ2 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (1,997.5)	(1,729.1)
BRF Bonds [Member] | BRF SA BRFSBZ2 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (1,974.5)	(1,795.8)
BFF Bonds [Member] | Sadia Overseas BRFSBZ7 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2020
BFF Bonds [Member] | Sadia Overseas BRFSBZ7 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (292.2)	(287.2)
BFF Bonds [Member] | Sadia Overseas BRFSBZ7 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (299.9)	(308.7)
Sadia Bonds [Member] | Sadia Overseas BRFSBZ6 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2017
Sadia Bonds [Member] | Sadia Overseas BRFSBZ6 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total		(370.0)
Sadia Bonds [Member] | Sadia Overseas BRFSBZ6 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total		(376.7)
Bonds BRF Gmbh [Member] | BRF SA BRFSBZ4 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2026
Bonds BRF Gmbh [Member] | BRF SA BRFSBZ4 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (1,628.9)	(1,606.6)
Bonds BRF Gmbh [Member] | BRF SA BRFSBZ4 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (1,553.1)	(1,538.8)
Quickfood Bonds [Member] | Quickfood [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2022
Quickfood Bonds [Member] | Quickfood [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (168.0)	(144.5)
Quickfood Bonds [Member] | Quickfood [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (168.0)	(144.5)
Bonds BRF - SHB [Member] | BRF SA BRFSBZ4 [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Maturity	2024
Bonds BRF - SHB [Member] | BRF SA BRFSBZ4 [Member] | Book Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (2,465.4)
Bonds BRF - SHB [Member] | BRF SA BRFSBZ4 [Member] | Fair Value [Member]
FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]
Total	R$ (2,427.8)

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 16)
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

Number

Dec. 31, 2016

USD

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Exchange rate

3.3080

3.2591

USD | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (24.3)

Exchange rate | Number

3.3080

USD | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (300.8)

Exchange rate | Number

2.9772

USD | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (715.8)

Exchange rate | Number

2.4810

USD | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 667.0

Exchange rate | Number

4.1350

USD | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 1,358.4

Exchange rate | Number

4.9620

USD | Designated as Hedging Instrument [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

USD | Designated as Hedging Instrument [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

USD | Designated as Hedging Instrument [Member] | Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

USD | Designated as Hedging Instrument [Member] | Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

USD | Designated as Hedging Instrument [Member] | Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

USD | Designated as Hedging Instrument [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Appreciation of R$

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (1.3)

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

0.7

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(300.8)

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(343.1)

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(157.8)

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

802.2

USD | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

0.1

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

94.1

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

115.1

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(231.9)

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(254.2)

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(117.0)

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

396.2

USD | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(2.3)

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

237.2

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

313.6

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(128.5)

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(120.9)

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(55.9)

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(240.0)

USD | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(5.6)

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(239.9)

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(277.9)

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(473.1)

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(565.3)

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(259.8)

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

1,810.1

USD | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

5.8

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(478.4)

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(608.7)

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Export Prepayment - PPEs [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(645.4)

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Senior Unsecured Notes - Bonds [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(787.4)

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Swap [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(361.7)

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

2,870.3

USD | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 11.3

USD | Not Designated as Hedging Instrument [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Appreciation of R$

USD | Not Designated as Hedging Instrument [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Appreciation of R$

USD | Not Designated as Hedging Instrument [Member] | Current Scenario [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (24.1)

USD | Not Designated as Hedging Instrument [Member] | Current Scenario [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(0.2)

USD | Not Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(288.7)

USD | Not Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(12.1)

USD | Not Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(685.7)

USD | Not Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(30.0)

USD | Not Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

637.5

USD | Not Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

29.6

USD | Not Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

1,299.1

USD | Not Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 59.3

USD | Cost (object) [Member] | Future - BM&Fbovespa [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Appreciation of R$

Euro Member Countries, Euro

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Exchange rate

3.9693

3.4384

Euro Member Countries, Euro | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 32.2

Exchange rate | Number

3.9693

Euro Member Countries, Euro | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (198.0)

Exchange rate | Number

3.5724

Euro Member Countries, Euro | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (543.4)

Exchange rate | Number

2.9770

Euro Member Countries, Euro | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 607.7

Exchange rate | Number

4.9616

Euro Member Countries, Euro | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 1,183.3

Exchange rate | Number

5.9540

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Appreciation of R$

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (0.7)

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

0.7

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

5.3

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(5.3)

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

14.2

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(14.2)

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(15.6)

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

15.6

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(30.4)

Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 30.4

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Current Scenario [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 33.1

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Current Scenario [Member] | NDF - Purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(0.9)

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(185.2)

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | NDF - Purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(12.8)

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(512.7)

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | NDF - Purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(30.7)

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

578.9

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | NDF - Purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

28.8

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | NDF - Purchase of US$ [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 1,124.7

Euro Member Countries, Euro | Not Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | NDF - Purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

Net effect

R$ 58.6

United Kingdom, Pounds

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Exchange rate

4.4714

4.0364

United Kingdom, Pounds | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

United Kingdom, Pounds | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Appreciation of R$

United Kingdom, Pounds | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate | Number

4.4714

United Kingdom, Pounds | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate | Number

4.0243

United Kingdom, Pounds | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate | Number

3.3536

United Kingdom, Pounds | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate | Number

5.5893

United Kingdom, Pounds | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate | Number

6.7071

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (1.0)

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Current Scenario [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

1.0

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

10.1

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario I 10% Appreciation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(10.1)

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

26.9

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario II 25% Appreciation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(26.9)

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(29.0)

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario III 25% Devaluation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

29.0

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Non-Deliverable Forwards [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(56.9)

United Kingdom, Pounds | Designated as Hedging Instrument [Member] | Scenario IV 50% devaluation [Member] | Export [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 56.9

XML

4. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 17) - USD
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

Number

Dec. 31, 2016

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Exchange rate

3.3080

3.2591

Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (24.3)

Exchange rate | Number

3.3080

Designated as Hedging Instrument [Member] | Cost (object) [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 0.1

Designated as Hedging Instrument [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Devaluation of R$

Designated as Hedging Instrument [Member] | Options - Currencies [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 0.7

Designated as Hedging Instrument [Member] | Corn [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

143.85

Designated as Hedging Instrument [Member] | Corn [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

129.47

Designated as Hedging Instrument [Member] | Corn [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

107.89

Designated as Hedging Instrument [Member] | Corn [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

179.81

Designated as Hedging Instrument [Member] | Corn [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

215.78

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - sale [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Increase in the price of corn

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - sale [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 1.0

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - sale [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

3.6

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - sale [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

7.6

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - sale [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(5.5)

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - sale [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (12.0)

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Decrease in the price of corn

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - purchase [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (4.2)

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(27.6)

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(62.7)

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

54.3

Designated as Hedging Instrument [Member] | Corn [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 112.8

Designated as Hedging Instrument [Member] | Corn [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Decrease in the price of corn

Designated as Hedging Instrument [Member] | Corn [Member] | Cost (object) [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 3.1

Designated as Hedging Instrument [Member] | Corn [Member] | Cost (object) [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

23.9

Designated as Hedging Instrument [Member] | Corn [Member] | Cost (object) [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

55.1

Designated as Hedging Instrument [Member] | Corn [Member] | Cost (object) [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(48.8)

Designated as Hedging Instrument [Member] | Corn [Member] | Cost (object) [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(100.8)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

127.11

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

114.40

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 0.1

Exchange rate

95.33

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

158.89

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

190.66

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Non-Deliverable Forwards - purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Decrease in the price of soybean meal

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Non-Deliverable Forwards - purchase [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (1.1)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(4.9)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(10.7)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

8.6

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 18.3

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Increase in the price of soybean meal

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Cost (object) [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 1.3

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Cost (object) [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

10.5

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Cost (object) [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

25.1

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Cost (object) [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(14.8)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Cost (object) [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (39.1)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Options - Currencies [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Decrease in the price of soybean meal

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Options - Currencies [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (0.2)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Options - Currencies [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(5.6)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Options - Currencies [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(14.3)

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Options - Currencies [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

6.2

Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Options - Currencies [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

20.8

Designated as Hedging Instrument [Member] | Soybean [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

353.38

Designated as Hedging Instrument [Member] | Soybean [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

318.04

Designated as Hedging Instrument [Member] | Soybean [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

265.04

Designated as Hedging Instrument [Member] | Soybean [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

441.73

Designated as Hedging Instrument [Member] | Soybean [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

Exchange rate

530.07

Designated as Hedging Instrument [Member] | Soybean [Member] | Non-Deliverable Forwards - purchase [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Decrease in the price of soybean

Designated as Hedging Instrument [Member] | Soybean [Member] | Non-Deliverable Forwards - purchase [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (1.1)

Designated as Hedging Instrument [Member] | Soybean [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(3.7)

Designated as Hedging Instrument [Member] | Soybean [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(7.8)

Designated as Hedging Instrument [Member] | Soybean [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

5.7

Designated as Hedging Instrument [Member] | Soybean [Member] | Non-Deliverable Forwards - purchase [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 12.4

Designated as Hedging Instrument [Member] | Soybean [Member] | Cost (object) [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Risk

Increase in the price of soybean

Designated as Hedging Instrument [Member] | Soybean [Member] | Cost (object) [Member] | Current Scenario [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ 1.1

Designated as Hedging Instrument [Member] | Soybean [Member] | Cost (object) [Member] | Scenario I 10% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

3.7

Designated as Hedging Instrument [Member] | Soybean [Member] | Cost (object) [Member] | Scenario II 25% Appreciation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

7.8

Designated as Hedging Instrument [Member] | Soybean [Member] | Cost (object) [Member] | Scenario III 25% Devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

(5.7)

Designated as Hedging Instrument [Member] | Soybean [Member] | Cost (object) [Member] | Scenario IV 50% devaluation [Member]

FinancialInstrumentsAndRiskManagementDetailsLineItems [Line Items]

Net effect

R$ (12.4)

XML

5. SEGMENT INFORMATION (Details) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of operating segments [line items]
Net sales	R$ 33,469.4	R$ 33,732.9	R$ 32,196.6
ONE FOODS [Member]
Disclosure of operating segments [line items]
Net sales	6,696.8	6,226.5	6,358.3
In-natura | ONE FOODS [Member]
Disclosure of operating segments [line items]
Net sales	5,591.6	5,584.2	5,922.2
Poultry [Member] | ONE FOODS [Member]
Disclosure of operating segments [line items]
Net sales	5,557.2	5,542.1	5,886.8
Processed foods | ONE FOODS [Member]
Disclosure of operating segments [line items]
Net sales	909.7	642.3	436.2
Other sales | ONE FOODS [Member]
Disclosure of operating segments [line items]
Net sales	195.5
Other | ONE FOODS [Member]
Disclosure of operating segments [line items]
Net sales	34.4	42.1	35.3
Other segments [Member]
Disclosure of operating segments [line items]
Net sales	1,225.3	1,297.1	782.0
Other segments [Member] | Ingredients [Member]
Disclosure of operating segments [line items]
Net sales	269.2
Other segments [Member] | Other sales
Disclosure of operating segments [line items]
Net sales	956.1	1,297.1	782.0
Brazil [Member]
Disclosure of operating segments [line items]
Net sales	15,188.6	14,808.1	15,255.5
Brazil [Member] | In-natura
Disclosure of operating segments [line items]
Net sales	3,489.9	3,109.0	2,997.9
Brazil [Member] | Poultry [Member]
Disclosure of operating segments [line items]
Net sales	2,697.5	2,410.3	2,265.0
Brazil [Member] | Pork and other
Disclosure of operating segments [line items]
Net sales	792.4	698.7	732.9
Brazil [Member] | Processed foods
Disclosure of operating segments [line items]
Net sales	11,681.6	11,600.8	12,206.5
Brazil [Member] | Other sales
Disclosure of operating segments [line items]
Net sales	17.1	98.3	51.1
INTERNATIONAL [Member]
Disclosure of operating segments [line items]
Net sales	8,497.1	9,636.4	7,915.1
INTERNATIONAL [Member] | In-natura
Disclosure of operating segments [line items]
Net sales	5,531.7	6,547.6	5,738.2
INTERNATIONAL [Member] | Poultry [Member]
Disclosure of operating segments [line items]
Net sales	4,255.4	5,063.5	4,378.7
INTERNATIONAL [Member] | Pork and other
Disclosure of operating segments [line items]
Net sales	1,276.3	1,484.1	1,359.5
INTERNATIONAL [Member] | Processed foods
Disclosure of operating segments [line items]
Net sales	2,728.2	2,867.4	2,175.4
INTERNATIONAL [Member] | Other sales
Disclosure of operating segments [line items]
Net sales	237.2	221.4	1.5
SOUTHERN CONE [Member]
Disclosure of operating segments [line items]
Net sales	1,861.6	1,764.8	1,885.8
SOUTHERN CONE [Member] | In-natura
Disclosure of operating segments [line items]
Net sales	395.2	383.0	564.9
SOUTHERN CONE [Member] | Poultry [Member]
Disclosure of operating segments [line items]
Net sales	195.8	230.2	290.3
SOUTHERN CONE [Member] | Pork and other
Disclosure of operating segments [line items]
Net sales	199.4	152.8	274.6
SOUTHERN CONE [Member] | Processed foods
Disclosure of operating segments [line items]
Net sales	1,408.8	1,348.0	1,271.1
SOUTHERN CONE [Member] | Other sales
Disclosure of operating segments [line items]
Net sales	R$ 57.6	R$ 33.8	R$ 49.8

XML

5. SEGMENT INFORMATION (Details 1) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of operating segments [line items]
Total	R$ 5,842.1	R$ 5,656.7
ONE FOODS [Member]
Disclosure of operating segments [line items]
Total	1,777.3	1,395.4
BRAZIL
Disclosure of operating segments [line items]
Total	2,134.0	2,134.0
INTERNATIONAL [Member]
Disclosure of operating segments [line items]
Total	1,369.9	1,271.7
SOUTHERN CONE [Member]
Disclosure of operating segments [line items]
Total	560.9	855.6
Goodwill [Member]
Disclosure of operating segments [line items]
Total	4,192.2	4,343.5
Goodwill [Member] | ONE FOODS [Member]
Disclosure of operating segments [line items]
Total	1,388.1	1,225.0
Goodwill [Member] | BRAZIL
Disclosure of operating segments [line items]
Total	1,151.5	1,151.5
Goodwill [Member] | INTERNATIONAL [Member]
Disclosure of operating segments [line items]
Total	1,345.4	1,247.0
Goodwill [Member] | SOUTHERN CONE [Member]
Disclosure of operating segments [line items]
Total	307.2	720.0
Trademarks [Member]
Disclosure of operating segments [line items]
Total	1,649.9	1,313.2
Trademarks [Member] | ONE FOODS [Member]
Disclosure of operating segments [line items]
Total	389.2	170.4
Trademarks [Member] | BRAZIL
Disclosure of operating segments [line items]
Total	982.5	982.5
Trademarks [Member] | INTERNATIONAL [Member]
Disclosure of operating segments [line items]
Total	24.5	24.7
Trademarks [Member] | SOUTHERN CONE [Member]
Disclosure of operating segments [line items]
Total	R$ 253.7	R$ 135.6

XML

6. BUSINESS COMBINATION AND ACQUISITION OF INTEREST (Details) - BRL (R$) R$ in Millions	Mar. 31, 2017	Dec. 31, 2016
Universal Meats UK [Member]
Disclosure of detailed information about business combination [line items]
Cash and cash equivalents	R$ 22.5
Trade accounts receivable, net	108.6
Inventories	64.3
Recoverable taxes
Deferred income and social contribution taxes
Biological assets
Property, plant and equipment	0.4
Intangible assets	127.2
Trademarks
Customer relationship	43.3	43.3
Import quotas	83.9	83.9
Other		(3.8)
Other assets	6.9
Financial assets	329.9
Trade accounts payable	30.6
Tax payable	3.2
Short-term debt	20.7
Deferred income and social contribution taxes	21.2
Provision for tax, civil and labor risks
Other liabilities	18.8
Financial liabilities	94.5
Net assets acquired	235.4
Fair value of consideration paid	280.8
Goodwill	45.4	168.8
Eclipse Holding Cooperatief U.A. [Member]
Disclosure of detailed information about business combination [line items]
Cash and cash equivalents	1.7
Trade accounts receivable, net	43.0
Inventories	18.4
Recoverable taxes	11.8
Deferred income and social contribution taxes	15.7
Biological assets	23.7
Property, plant and equipment	203.5	165.2
Intangible assets	64.6
Trademarks	64.5	64.5
Customer relationship
Import quotas
Other	0.1	0.1
Other assets	3.8
Financial assets	386.2
Payroll and related charges	9.4
Trade accounts payable	50.3
Tax payable	8.2
Short-term debt	33.7
Deferred income and social contribution taxes
Provision for tax, civil and labor risks	37.6
Other liabilities	20.3
Financial liabilities	159.5
Net assets acquired	226.7
Fair value of consideration paid	228.5
Goodwill	1.8	231.5
AlimentosCalchaquiProductsSevenS.A. [Member]
Disclosure of detailed information about business combination [line items]
Cash and cash equivalents	11.7
Trade accounts receivable, net	14.5
Inventories	13.3
Recoverable taxes	12.0
Deferred income and social contribution taxes
Biological assets
Property, plant and equipment	75.4	62.3
Intangible assets	122.9
Trademarks	122.3	122.3
Customer relationship
Import quotas
Other	0.6	0.6
Other assets	0.2
Financial assets	250.0
Payroll and related charges	3.5
Trade accounts payable	14.8
Tax payable	15.2
Short-term debt
Deferred income and social contribution taxes
Provision for tax, civil and labor risks	14.4
Other liabilities	33.2
Financial liabilities	81.1
Net assets acquired	168.9
Fair value of consideration paid	387.0
Goodwill	R$ 218.1	R$ 403.1

XML

6. BUSINESS COMBINATION AND ACQUISITION OF INTEREST (Details 1) - BRL (R$) R$ in Millions	Mar. 31, 2017	Dec. 31, 2016
Universal Meats UK [Member]
BusinessCombinationAndAcquisitionOfInterestLineItems [Line Items]
Preliminary goodwill (disclosed on December 31, 2016)	R$ 45.4	R$ 168.8
Allocations		123.4
Property, plant and equipment, net	0.4
Trademarks
Import quotas	83.9	83.9
Customer relationship	43.3	43.3
Other		(3.8)
Goodwill for future expected profitability		45.4
Eclipse Holding Cooperatief U.A. [Member]
BusinessCombinationAndAcquisitionOfInterestLineItems [Line Items]
Preliminary goodwill (disclosed on December 31, 2016)	1.8	231.5
Allocations		229.8
Property, plant and equipment, net	203.5	165.2
Trademarks	64.5	64.5
Import quotas
Customer relationship
Other	0.1	0.1
Goodwill for future expected profitability		1.7
AlimentosCalchaquiProductsSevenS.A. [Member]
BusinessCombinationAndAcquisitionOfInterestLineItems [Line Items]
Preliminary goodwill (disclosed on December 31, 2016)	218.1	403.1
Allocations		185.2
Property, plant and equipment, net	75.4	62.3
Trademarks	122.3	122.3
Import quotas
Customer relationship
Other	R$ 0.6	0.6
Goodwill for future expected profitability		R$ 217.9

XML

6. BUSINESS COMBINATION AND ACQUISITION OF INTEREST (Details 2) - BRL (R$) R$ in Millions	Dec. 31, 2017	May 25, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Deferred tax assets	R$ 1,369.4		R$ 1,103.1
Deferred taxes liabilities	R$ 155.3		R$ 156.2
Banvit Bandirma Vitaminli Yem Sanayii A.S. [Member]
Disclosure of detailed information about business combination [line items]
Cash and cash equivalents		R$ 93.7
Trade accounts receivable, net		171.3
Inventories		153.7
Biological assets		103.0
Deferred tax assets		41.3
Investments		6.9
Property, plant and equipment		547.7
Intangible assets
Software		2.7
Trademarks		230.1
Customer relationship		431.7
Other assets		25.9
Financial assets		1,808.0
Payroll and related charges		22.9
Trade accounts payable		192.9
Debt		389.2
Deferred taxes liabilities		37.8
Provision for tax, civil and labor risks		1.8
Other post-employment plans		26.0
Other liabilities		55.4
Financial liabilities		726.0
Net assets acquired		1,082.0
Non-controlling interest		(58.1)
Fair value of consideration paid		1,227.7
Goodwill		R$ 203.8

XML

6. BUSINESS COMBINATION AND ACQUISITION OF INTEREST (Details Narrative) - BRL (R$) R$ in Millions	Dec. 31, 2017	Aug. 11, 2017	May 25, 2017	May 24, 2017	Mar. 31, 2017	Jan. 09, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Restricted cash	R$ 535.6						R$ 645.9
Universal Meats UK [Member]
Disclosure of detailed information about business combination [line items]
Percentage of voting equity interests acquired							100.00%
Purchase price					R$ 280.8
Eclipse Holding Cooperatief U.A. [Member]
Disclosure of detailed information about business combination [line items]
Percentage of voting equity interests acquired							100.00%
Purchase price					228.5
AlimentosCalchaquiProductsSevenS.A. [Member]
Disclosure of detailed information about business combination [line items]
Percentage of voting equity interests acquired							100.00%
Purchase price					R$ 387.0
BRF Foods GmbH [Member]
Disclosure of detailed information about business combination [line items]
Percentage of voting equity interests acquired				60.00%
Non-current liabilities				R$ 465.0
BRF Foods GmbH [Member] | Turkey, New Lira [Member]
Disclosure of detailed information about business combination [line items]
Non-current liabilities				R$ 505.4
Qatar Investment Authority [Member]
Disclosure of detailed information about business combination [line items]
Percentage of voting equity interests acquired		91.71%	40.00%	40.00%		79.50%
Purchase price		R$ 1,277.7
TBQ Foods GmbH [Member]
Disclosure of detailed information about business combination [line items]
Non-controlling interest			R$ 844.9
TBQ Foods GmbH [Member] | Turkey, New Lira [Member]
Disclosure of detailed information about business combination [line items]
Non-controlling interest			917.9
Banvit Bandirma Vitaminli Yem Sanayii A.S. [Member]
Disclosure of detailed information about business combination [line items]
Non-controlling interest			(58.1)
Cash transferred		12,225,326.0
Restricted cash		151.0
Purchase price			R$ 1,227.7
Banvit Bandirma Vitaminli Yem Sanayii A.S. [Member] | Turkey, New Lira [Member]
Disclosure of detailed information about business combination [line items]
Cash transferred		164.1
Banvit Bandirma Vitaminli Yem Sanayii A.S. [Member] | UNITED STATES [Member]
Disclosure of detailed information about business combination [line items]
Purchase price		R$ 411.0

XML

7. CASH AND CASH EQUIVALENTS (Details) € in Millions, £ in Millions, R$ in Millions, $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2017 BRL (R$)	Dec. 31, 2017 EUR (€)	Dec. 31, 2017 GBP (£)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 BRL (R$)	Dec. 31, 2016 EUR (€)	Dec. 31, 2016 GBP (£)	Dec. 31, 2015 BRL (R$)	Dec. 31, 2014 BRL (R$)
Disclosure of fair value measurement of assets [line items]
Cash and bank accounts		R$ 1,670.2				R$ 1,730.4
Cash equivalents		6,010.8				6,356.9
Cash and cash equivalents		R$ 6,010.8				6,356.9			R$ 5,362.9	R$ 6,006.9
USD
Disclosure of fair value measurement of assets [line items]
Cash and bank accounts | $	$ 525.1				$ 680.1
USD | Fixed term deposit [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents | $	$ 66.2				327.0
Average rate (p.a.)	2.95%	2.95%	2.95%	2.95%
USD | Overnight [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents | $	$ 645.6				$ 421.5
Average rate (p.a.)	0.50%	0.50%	0.50%	0.50%
Brazil
Disclosure of fair value measurement of assets [line items]
Cash and bank accounts		R$ 135.0				46.4
Cash equivalents						3,861.9
Brazil | Investment funds [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents		R$ 5.3				26.9
Average rate (p.a.)	1.87%	1.87%	1.87%	1.87%
Brazil | Savings account [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents		R$ 4.0				4.8
Average rate (p.a.)	2.76%	2.76%	2.76%	2.76%
Brazil | Bank deposit certificates [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents		R$ 3,527.8				3,830.2
Average rate (p.a.)	6.96%	6.96%	6.96%	6.96%
Euro Member Countries, Euro
Disclosure of fair value measurement of assets [line items]
Cash and bank accounts | €			€ 181.8				€ 274.3
Other currencies
Disclosure of fair value measurement of assets [line items]
Cash and bank accounts | £				£ 828.3				£ 729.6
Other currencies | Fixed term deposit [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents | £				£ 91.7				£ 16.1
Average rate (p.a.)	1.78%	1.78%	1.78%	1.78%
USD and Other Currencies [Member]
Disclosure of fair value measurement of assets [line items]
Cash equivalents		R$ 803.5				R$ 764.6

XML

8. MARKETABLE SECURITIES (Details) - BRL (R$)
R$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

MarketableSecuritiesLineItems [Line Items]

Financial assets

R$ 630.8

R$ 1,092.5

Current

228.4

622.3

Non-current

568.8

527.7

Available For Sale [Member]

MarketableSecuritiesLineItems [Line Items]

Financial assets

R$ 344.2

623.3

Available For Sale [Member] | Credit Linked Notes [Member]

MarketableSecuritiesLineItems [Line Items]

WATM

5 years 5 months 23 days

Currency

US$

Average interest rate (p.a.)

3.85%

Financial assets

R$ 15.4

187.4

Available For Sale [Member] | Public securities [Member]

MarketableSecuritiesLineItems [Line Items]

Currency

US$

Financial assets

56.4

Available For Sale [Member] | Stocks [Member]

MarketableSecuritiesLineItems [Line Items]

Currency

R$

Average interest rate (p.a.)

Financial assets

R$ 328.8

379.5

Held For Trading [Member]

MarketableSecuritiesLineItems [Line Items]

Financial assets

R$ 196.0

271.2

Held For Trading [Member] | Bank deposit certificates [Member]

MarketableSecuritiesLineItems [Line Items]

Currency

R$

Financial assets

48.4

Held For Trading [Member] | Financial Treasury Bills [Member]

MarketableSecuritiesLineItems [Line Items]

WATM

1 year 9 months 25 days

Currency

R$

Average interest rate (p.a.)

6.90%

Financial assets

R$ 166.3

180.5

Held For Trading [Member] | Investment funds [Member]

MarketableSecuritiesLineItems [Line Items]

WATM

1 year

Currency

ARS

Average interest rate (p.a.)

25.00%

Financial assets

R$ 29.7

42.3

Held To Maturity [Member]

MarketableSecuritiesLineItems [Line Items]

Financial assets

797.2

1,150.0

Held To Maturity [Member] | Financial Treasury Bills [Member]

MarketableSecuritiesLineItems [Line Items]

Financial assets

166.3

180.5

Held To Maturity [Member] | Investment funds [Member]

MarketableSecuritiesLineItems [Line Items]

Financial assets

R$ 29.7

42.3

Held To Maturity [Member] | Sovereign Bonds & Others [Member]

MarketableSecuritiesLineItems [Line Items]

WATM

4 years 4 months 2 days

Currency

AOA and R$

Financial assets

R$ 257.0

R$ 255.5

Held To Maturity [Member] | Sovereign Bonds & Others [Member] | Bottom of range [Member]

MarketableSecuritiesLineItems [Line Items]

Average interest rate (p.a.)

3.82%

Held To Maturity [Member] | Sovereign Bonds & Others [Member] | Top of range [Member]

MarketableSecuritiesLineItems [Line Items]

Average interest rate (p.a.)

6.90%

XML

8. MARKETABLE SECURITIES (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of associates [line items]
Unrealized loss in available for sale securities, net of tax	R$ 56.3	R$ 26.0
Unrealized loss in available for sale securities,tax	(11.5)	(13.5)	R$ 1.8
Marketable securities, pledged as collateral	16.2	74.1
Restricted cash	R$ 535.6	R$ 645.9
Minerva [Member]
Disclosure of associates [line items]
Number of stocks	26,000,000
Stocks per value	R$ 10.65
Cofco Meat [Member]
Disclosure of associates [line items]
Number of stocks	77,583
Cofco Meat [Member] | USD
Disclosure of associates [line items]
Stocks per value	R$ 1.58

XML

9. TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Trade accounts receivable, net
Trade accounts receivable, gross	R$ 4,406.6	R$ 3,518.6
Adjustment to present value	(13.7)	(16.3)
Allowance for doubtful accounts	(467.6)	(406.5)
Trade accounts receivable, net	3,925.3	3,095.8
Current	3,919.0	3,085.1
Non-current	6.3	10.7
Notes Receivables [Member]
Trade accounts receivable, net
Trade accounts receivable, gross	260.6	367.9
Adjustment to present value	(0.3)	(0.2)
Allowance for doubtful accounts	(30.8)	(32.2)
Trade accounts receivable, net	229.5	335.5
Current	113.1	149.0
Non-current	116.4	186.5
Domestic [Member] | Trade Receivables [Member]
Trade accounts receivable, net
Customers	1,622.8	1,308.1
Related parties	2.6	1.1
Foregin [Member] | Trade Receivables [Member]
Trade accounts receivable, net
Customers	2,754.0	2,144.7
Related parties	R$ 27.2	R$ 64.7

XML

9. TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES (Details 1) R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$)
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Principal value	R$ 3,500.0
Updated value	R$ 3,571.7
Due Maturity10.01.2018[Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Average rate	96.90%
Principal value	R$ 1,000.0
Updated value	R$ 997.8
Due Maturity04.19.2019[Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Average rate	96.50%
Principal value	R$ 1,000.0
Updated value	R$ 1,009.4
Due Maturity12.16.2020[Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Average rate	96.00%
Principal value	R$ 780.0
Updated value	R$ 801.0
Due Maturity12.18.2023[Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Average rate	5.90%
Principal value	R$ 720.0
Updated value	R$ 763.5

XML

9. TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES (Details 2) - Trade Receivables [Member] - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in allowance account for credit losses of financial assets
Beginning balance		R$ (406.5)	R$ (432.0)
Additions		(187.3)	(199.2)
Business combination (1)	[1]	(11.6)	(10.6)
Reversals		112.0	148.6
Write-offs		30.8	30.7
Exchange rate variation		(5.0)	56.0
Ending balance		R$ (467.6)	R$ (406.5)

[1] Balance arising from the business combination with Banvit (note 6.1.3).

XML

9. TRADE ACCOUNTS RECEIVABLE, NET AND OTHER RECEIVABLES (Details 3) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	R$ 3,925.3	R$ 3,095.8
( - ) Adjustment to present value	(13.7)	(16.3)
( - ) Allowance for doubtful accounts	(467.6)	(406.5)
Current [Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	3,272.1	2,389.9
01 to 60 days [Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	364.3	393.8
61 to 90 days [Member]
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	98.9	42.0
91 to 120 days
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	33.7	25.3
121 to 180 days
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	74.6	72.3
181 to 360 days
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	170.8	157.2
More than 361 days
TradeAccountsReceivableNetAndOtherReceivablesLineItems [Line Items]
Trade Receivables	R$ 392.2	R$ 438.1

XML

10. INVENTORIES (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
InventoriesLineItems [Line Items]
Finished goods	R$ 3,166.4	R$ 3,207.9
Work in process	156.7	172.8
Raw materials	1,220.1	900.8
Packaging materials	87.2	76.8
Secondary materials	324.9	265.3
Warehouse	247.4	205.7
Imports in transit	103.9	113.0
Other	11.4	6.7
(-) Provision	(327.1)	(127.4)	R$ (81.8)
Inventories	4,948.2	4,791.6
Provision For Adjustment to Realizable Value [Member]
InventoriesLineItems [Line Items]
(-) Provision	(253.7)	(93.5)	(20.0)
Provision For Deterioration [Member]
InventoriesLineItems [Line Items]
(-) Provision	(66.4)	(26.2)	(49.6)
Provision For Obsolescense [Member]
InventoriesLineItems [Line Items]
(-) Provision	(6.9)	(7.7)	R$ (12.2)
Adjustment to Present Value [Member]
InventoriesLineItems [Line Items]
(-) Provision	R$ (42.8)	R$ (30.1)

XML

10. INVENTORIES (Details 1) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
InventoriesLineItems [Line Items]
Beginning balance	R$ (127.4)	R$ (81.8)
Additions	(305.4)	(134.5)
Reversals	80.8	15.3
Write-offs	24.5	48.5
Business Combination	0.8
Exchange rate variation	(0.2)	25.1
Ending balance	(327.1)	(127.4)
Provision For Adjustment to Realizable Value [Member]
InventoriesLineItems [Line Items]
Beginning balance	(93.5)	(20.0)
Additions	(240.7)	(113.9)
Reversals	80.8	15.3
Write-offs
Exchange rate variation	(0.3)	25.1
Ending balance	(253.7)	(93.5)
Provision For Deterioration [Member]
InventoriesLineItems [Line Items]
Beginning balance	(26.2)	(49.6)
Additions	(62.4)	(19.0)
Reversals
Write-offs	22.3	44.6
Exchange rate variation	(0.1)	(2.2)
Ending balance	(66.4)	(26.2)
Provision For Obsolescense [Member]
InventoriesLineItems [Line Items]
Beginning balance	(7.7)	(12.2)
Additions	(2.4)	(1.5)
Reversals
Write-offs	2.2	3.8
Business Combination	0.8
Exchange rate variation	0.2	2.2
Ending balance	R$ (6.9)	R$ (7.7)

XML

11. BIOLOGICAL ASSETS (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about biological assets [line items]
Current biological assets	R$ 1,510.5	R$ 1,644.9
Noncurrent biological assets	903.7	917.3
Biological assets	2,414.2	2,562.3
Live animals [Member]
Disclosure of detailed information about biological assets [line items]
Current biological assets	1,510.5	1,644.9
Noncurrent biological assets	639.8	647.3
Forests [Member]
Disclosure of detailed information about biological assets [line items]
Noncurrent biological assets	R$ 263.9	R$ 270.0

XML

11. BIOLOGICAL ASSETS (Details 1) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		R$ 2,562.3
Ending balance		2,414.2	R$ 2,562.3
Current biological assets [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		1,644.9	1,329.9
Additions/Transfer		2,240.0	1,932.4
Business combination	[1]	103.0	17.9
Fair value measurement	[2]	1,379.1	1,777.6
Harvest
Write-off
Transfer between current and non-current		148.6	143.0
Transfer to/from assets held for sale
Transfer to inventories		(3,997.3)	(3,550.0)
Exchange variation		(7.8)	(5.9)
Ending balance		1,510.5	1,644.9
Current biological assets [Member] | Live animals [Member] | Poultry [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		770.8	595.5
Additions/Transfer		547.9	246.4
Business combination	[1],[3]	103.0
Fair value measurement	[2]	1,290.4	1,664.7
Harvest
Write-off
Transfer between current and non-current		69.9	72.3
Transfer to/from assets held for sale
Transfer to inventories		(2,076.2)	(1,804.8)
Exchange variation		(5.9)	(3.3)
Ending balance		699.9	770.8
Current biological assets [Member] | Live animals [Member] | Pork [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		874.3	734.4
Additions/Transfer		1,692.0	1,686.0
Business combination	[1]		17.9
Fair value measurement	[2]	88.7	112.9
Harvest
Write-off
Transfer between current and non-current		78.7	70.7
Transfer to/from assets held for sale
Transfer to inventories		(1,921.2)	(1,745.1)
Exchange variation		(1.9)	(2.6)
Ending balance		810.6	874.3
Non-current biological assets [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		917.3	761.0
Additions/Transfer		323.4	273.7
Business combination	[1]		29.7
Fair value measurement	[2]	(137.0)	46.0
Harvest		(41.2)	(31.0)
Write-off		(12.3)	(8.8)
Transfer between current and non-current		(142.4)	(143.0)
Transfer to/from assets held for sale		(3.9)	(4.4)
Transfer to inventories
Exchange variation		(0.3)	(5.9)
Ending balance		903.6	917.3
Non-current biological assets [Member] | Live animals [Member] | Poultry [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		349.0	294.9
Additions/Transfer		84.3	45.0
Business combination	[1]		24.0
Fair value measurement	[2]	(31.0)	66.6
Harvest
Write-off		(8.4)
Transfer between current and non-current		(69.9)	(72.3)
Transfer to/from assets held for sale			(4.1)
Transfer to inventories
Exchange variation		1.8	(5.1)
Ending balance		325.8	349.0
Non-current biological assets [Member] | Live animals [Member] | Pork [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		298.3	236.0
Additions/Transfer		203.8	191.2
Business combination	[1]		5.8
Fair value measurement	[2]	(113.4)	(63.0)
Harvest
Write-off		(0.2)
Transfer between current and non-current		(72.5)	(70.7)
Transfer to/from assets held for sale		(4.1)
Transfer to inventories
Exchange variation		(2.1)	(1.0)
Ending balance		313.9	298.3
Non-current biological assets [Member] | Forests [Member]
Disclosure of reconciliation of changes in biological assets [line items]
Beginning balance		270.0	230.2
Additions/Transfer		35.3	37.5
Business combination	[1]
Fair value measurement	[2]	7.4	42.4
Harvest		(41.2)	(31.0)
Write-off		(3.7)	(8.8)
Transfer between current and non-current
Transfer to/from assets held for sale		(3.9)	(0.3)
Transfer to inventories
Exchange variation
Ending balance		R$ 263.9	R$ 270.0

[1] Balance arising from the business combination with Banvit (note 6.1.3).

[2] The fair value variation of biological assets includes depreciation of breeding stock in the amount of R$758,7 (R$680,9 as of December 31, 2016).

[3] (1) Weighted average maturity in years.

XML

11. BIOLOGICAL ASSETS (Details 2) Number in Thousands, R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$) Number	Dec. 31, 2016 BRL (R$) Number
Disclosure of detailed information about biological assets [line items]
Total current	R$ 1,510.5	R$ 1,644.9
Total non-current	R$ 903.7	R$ 917.3
Live animals [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	221,804	225,300
Total current	R$ 1,510.5	R$ 1,644.9
Total non-current	639.8	647.3
Total	R$ 2,150.3	R$ 2,292.3
Live animals [Member] | Consumable biological assets [member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	203,324	206,242
Total current	R$ 1,510.5	R$ 1,644.9
Live animals [Member] | Consumable biological assets [member] | Immature [member] | Poultry [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	199,337	202,454
Total current	R$ 699.9	R$ 770.7
Live animals [Member] | Consumable biological assets [member] | Immature [member] | Pork [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	3,987	3,788
Total current	R$ 810.6	R$ 874.2
Live animals [Member] | Production biological assets [member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	18,480	19,027
Total current	R$ 639.8	R$ 647.3
Live animals [Member] | Production biological assets [member] | Immature [member] | Poultry [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	6,693	6,735
Total current	R$ 117.2	R$ 119.9
Live animals [Member] | Production biological assets [member] | Immature [member] | Pork [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	229	195
Total current	R$ 51.2	R$ 58.9
Live animals [Member] | Production biological assets [member] | Mature [member] | Poultry [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	11,113	11,670
Total current	R$ 208.6	R$ 229.2
Live animals [Member] | Production biological assets [member] | Mature [member] | Pork [Member]
Disclosure of detailed information about biological assets [line items]
Quantity (Heads) | Number	445	427
Total current	R$ 246.2	R$ 239.4

XML

11. BIOLOGICAL ASSETS (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Biological Assets Details Narrative
Depreciation of breeding stock	R$ 758.7	R$ 680.9	R$ 545.0

XML

12. RECOVERABLE AND INCOME AND SOCIAL CONTRIBUTION TAXES (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
RecoverableTaxesLineItems [Line Items]
Provision for losses	R$ (169.5)	R$ (164.6)	R$ (171.4)
Current tax assets	3,147.1	2,328.7
Current	728.9	846.1
Non-current	2,418.2	1,482.6
Current tax assets	528.7	433.7
Provision for losses	(9.0)	(9.0)
Current tax assets	519.3	424.7
Current	499.3	388.7
Non-current	20.0	36.0
State ICMS ("VAT") [Member]
RecoverableTaxesLineItems [Line Items]
Current tax assets	1,681.9	1,575.1
Provision for losses	122.9	(114.3)	(113.9)
PIS and COFINS ("Federal Taxes to Social Fund Programs") [Member]
RecoverableTaxesLineItems [Line Items]
Current tax assets	430.6	331.6
Provision for losses	(19.7)	(19.9)	(25.1)
Income tax credits [Member]
RecoverableTaxesLineItems [Line Items]
Current tax assets		433.7
IPI ("Federal VAT") [Member]
RecoverableTaxesLineItems [Line Items]
Current tax assets	791.2	201.3
Provision for losses	(13.5)	(14.7)	(14.7)
INSS ("Brazilian Social Security") [Member]
RecoverableTaxesLineItems [Line Items]
Current tax assets	280.4	280.4
Other [Member]
RecoverableTaxesLineItems [Line Items]
Current tax assets	123.9	95.9
Provision for losses	R$ (4.4)	R$ (6.7)	R$ (8.7)

XML

12. RECOVERABLE AND INCOME AND SOCIAL CONTRIBUTION TAXES (Details 1) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
RecoverableTaxesLineItems [Line Items]
Beginning balance	R$ (164.6)	R$ (171.4)
Additions	(40.0)	(28.7)
Write-offs	34.5	33.4
Exchange rate variation	0.6	2.1
Ending balance	(169.5)	(164.6)
State ICMS ("VAT") [Member]
RecoverableTaxesLineItems [Line Items]
Beginning balance	(114.3)	(113.9)
Additions	(37.7)	(28.2)
Write-offs	29.1	27.8
Exchange rate variation
Ending balance	122.9	(114.3)
PIS and COFINS ("Federal Taxes to Social Fund Programs") [Member]
RecoverableTaxesLineItems [Line Items]
Beginning balance	(19.9)	(25.1)
Additions		(0.2)
Write-offs	0.2	5.4
Exchange rate variation
Ending balance	(19.7)	(19.9)
Income and social contribution tax [Member]
RecoverableTaxesLineItems [Line Items]
Beginning balance	(9.0)	(9.0)
Additions
Write-offs
Exchange rate variation
Ending balance	(9.0)	(9.0)
IPI ("Federal VAT") [Member]
RecoverableTaxesLineItems [Line Items]
Beginning balance	(14.7)	(14.7)
Additions
Write-offs	1.2
Exchange rate variation
Ending balance	(13.5)	(14.7)
Other [Member]
RecoverableTaxesLineItems [Line Items]
Beginning balance	(6.7)	(8.7)
Additions	(2.3)	(0.3)
Write-offs	4.0	0.2
Exchange rate variation	0.6	2.1
Ending balance	R$ (4.4)	R$ (6.7)

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Tax loss carryforwards (corporate income tax)		R$ 1,438.9	R$ 1,317.3
Negative calculation basis (social contribution tax)		401.4	376.6
Temporary differences
Total net deferred tax assets		1,369.4	1,103.1
Business combination - Sadia	[1]	(727.1)	(703.0)
Business combination - Danica and Avex		(4.5)	(6.7)
Business combination - AFC			(34.4)
Business combination - AKF		(17.8)	(19.1)
Business combination - Federal Foods			(7.6)
Business combination - Invicta		(30.9)	(39.8)
Other - exchange rate variation		(54.9)	(48.6)
Deferred income taxes		155.3	156.2
Total deferred tax		1,214.1	947.0	R$ 1,067.7
Provisions for tax, civil and labor risks [Member]
Temporary differences
Temporary differences assets		398.0	268.2
Suspended collection taxes [Member]
Temporary differences
Temporary differences assets		12.3	22.1
Allowance for doubtful accounts [Member]
Temporary differences
Temporary differences assets		116.1	107.2
Provision for property, plant and equipment losses [Member]
Temporary differences
Temporary differences assets		6.3	3.2
Provision for losses on tax credits [Member]
Temporary differences
Temporary differences assets		53.2	51.3
Provision for other obligations [Member]
Temporary differences
Temporary differences assets		92.8	67.5
Provision for inventory losses [Member]
Temporary differences
Temporary differences assets		98.6	17.6
Employees' benefits plan [Member]
Temporary differences
Temporary differences assets		127.4	112.2
Unrealized losses on derivatives financial instruments [Member]
Temporary differences
Temporary differences assets		80.4	133.3
Unrealized losses on inventories [Member]
Temporary differences
Temporary differences assets		4.4	2.4
Provision for losses - notes receivables [Member]
Temporary differences
Temporary differences assets		13.7	13.2
Business combination - Sadia [Member]
Temporary differences
Temporary differences assets		206.8	329.0
Other temporary differences [Member]
Temporary differences
Temporary differences assets		96.7	106.5
Temporary differences liabilities		(27.4)	(36.2)
Business combination - other companies [Member]
Temporary differences
Temporary differences liabilities	[2]	(35.8)	(58.2)
Difference between tax basis and accounting basis of goodwill amortization [Member]
Temporary differences
Temporary differences liabilities		(301.8)	(254.3)
Difference between tax depreciation rate and accounting depreciation rate (useful life) [Member]
Temporary differences
Temporary differences liabilities		(694.2)	(694.5)
Unrealized gains on fair value [Member]
Temporary differences
Temporary differences liabilities		R$ (38.5)	R$ (78.3)

[1] The deferred tax asset on the business combination with Sadia is mainly computed on the difference between the goodwill amortization tax basis and goodwill accounting basis identified in the purchase price allocation. Deferred tax liability on business combination with Sadia is substantially represented by the fair value of property, plant and equipment, trademarks and contingent liabilities.

[2] Deferred tax liabilities related to the business combinations with Quickfood (trademarks, customer relationship, Fair value of property, plant and equipment) and AFC (customer relationship).

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 1) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income And Social Contribution Taxes
Beginning balance	R$ 947.0	R$ 1,067.7
Deferred income taxes recognized in the income statement	230.0	104.1
Deferred income taxes - write-off dairy segment	(56.9)
Deferred income taxes recognized in other comprehensive income	15.2	(261.6)
Business combination	(15.9)	(20.8)
Deferred income and social contribution taxes on disposals of goodwill from BRF Gmbh and Invicta	44.4
Exchange rate variation over deferred income taxes related to business combination	(7.2)	44.0
Other	57.5	13.6
Ending balance	R$ 1,214.1	R$ 947.0

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 2) R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$)
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	R$ 1,840.3
2018 [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	27.9
2019 [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	74.8
2020 [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	137.8
2021 [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	155.3
2022 onwards [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	184.5
2022 [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	714.4
2026 onwards [Member]
IncomeAndSocialContributionTaxesLineItems [Line Items]
Deferred tax	R$ 545.6

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 3) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income And Social Contribution Taxes
Income before taxes from continued operations	R$ (1,345.5)	R$ (317.5)	R$ 2,558.2
Nominal tax rate	34.00%	34.00%	34.00%
Credit (expense) at nominal rate	R$ 457.5	R$ 107.9	R$ (869.8)
Reconciling itens
Income (loss) from associates and joint venture	7.6	10.0	(35.3)
Exchange rate variation on net foreign assets	71.7	(224.6)	460.2
Difference of tax rates on results of foreign subsidiaries	87.0	(105.4)	641.5
Interest on shareholders' equity	(363.8)	174.5	305.7
Taxation of foreign results		(39.5)	(54.6)
Stock options	(7.3)	(14.8)	(20.0)
Transfer pricing	(15.8)	(1.5)	(8.4)
Profit sharing		(0.8)	(10.5)
Penalties	(6.8)	(7.9)	(4.2)
Investment grant	(117.8)	41.7	44.8
Other permanent differences	49.1	10.5	(59.8)
Total income tax expense continuing operations	8.4	(49.9)	389.6
Current income tax	(16.6)	154.0	17.1
Deferred income tax	(230.0)	(104.1)	(406.6)
Income tax expense continuing operations	8.4	(49.9)	389.6
Current income tax	16.6	(154.0)	(17.1)
Deferred income tax	R$ 230.0	R$ 104.1	R$ 406.6

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Details 4) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income And Social Contribution Taxes
Taxable income (loss) from foreign subsidiaries	R$ (432.3)	R$ (1,289.8)	R$ 2,064.7
Current income tax expense reported by foreign subsidiaries	(67.1)	(58.2)	(41.0)
Deferred income tax from foreign subsidiaries	R$ (18.0)	R$ 348.1	R$ 5.8

XML

13. INCOME AND SOCIAL CONTRIBUTION TAXES (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income And Social Contribution Taxes
Undistributed earnings corresponds	R$ 3,182.4	R$ 3,317.1

XML

14. JUDICIAL DEPOSITS (Details) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
JudicialDepositsLineItems [Line Items]
Beginning balance	R$ 732.6	R$ 732.1
Additions	219.5	249.8
Business combination (1)		0.2	[1]
Reversals	(135.6)	(29.4)
Write-offs	(156.0)	(288.3)
Price index update	30.2	70.8
Exchange rate variation	(1.8)	(2.6)
Ending balance	688.9	732.6
Tax [Member]
JudicialDepositsLineItems [Line Items]
Beginning balance	312.5	376.7
Additions	23.4	82.7
Business combination (1)		0.2	[1]
Reversals	(52.5)	(4.8)
Write-offs	(9.0)	(184.4)
Price index update	18.2	42.1
Exchange rate variation	(0.1)
Ending balance	292.5	312.5
Labor [Member]
JudicialDepositsLineItems [Line Items]
Beginning balance	377.4	311.3
Additions	188.3	161.6
Business combination (1)
Reversals	(78.7)	(20.7)
Write-offs	(136.5)	(97.8)
Price index update	11.2	25.6
Exchange rate variation	(1.7)	(2.6)
Ending balance	360.0	377.4
Civil, commercial and other [Member]
JudicialDepositsLineItems [Line Items]
Beginning balance	42.7	44.1
Additions	7.8	5.5
Business combination (1)
Reversals	(4.4)	(3.9)
Write-offs	(10.5)	(6.1)
Price index update	0.8	3.1
Exchange rate variation
Ending balance	R$ 36.4	R$ 42.7

[1] Balance arising from the business combination with Eclipse Holding Cooperatief UA.

XML

15. RESTRICTED CASH (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017		Dec. 31, 2016
Disclosure of financial assets [line items]
Total restricted cash		R$ 535.6		R$ 645.9
Current		127.8		218.3
Non-current		R$ 407.8		R$ 427.6
Bank deposit certificates [Member]
Disclosure of financial assets [line items]
Maturity	[1],[2]	3 years 6 months 18 days
Average interest rate (p.a.)		8.05%	[1]
Bank deposit certificates [Member] | Brazil
Disclosure of financial assets [line items]
Total restricted cash	[1]	R$ 326.4		R$ 384.4
National treasury certificates [Member]
Disclosure of financial assets [line items]
Maturity	[2],[3]	2 years 3 months 14 days
Average interest rate (p.a.)		11.47%	[3]
National treasury certificates [Member] | Brazil
Disclosure of financial assets [line items]
Total restricted cash	[3]	R$ 190.2		R$ 171.4
Bank deposit [Member]
Disclosure of financial assets [line items]
Average interest rate (p.a.)	[4]
Bank deposit [Member] | USD
Disclosure of financial assets [line items]
Total restricted cash	[4]	R$ 19.0		R$ 90.1

[1] The deposit was pledged as collateral in the disposal of the dairy segment to Groupe Lactalis ("Parmalat") with maturity on 2021.

[2] Weighted average maturity in years.

[3] The national treasury certificates, which mature on 2020, are pledged as collateral for the loan obtained through the Special Program Asset Restructuring ("PESA") (note 19).

[4] Deposit linked to operations in the international market.

XML

16. INVESTMENTS (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of joint ventures [line items]
Investment in associates and joint ventures	R$ 54.1	R$ 51.7
Total investment in associates and joint ventures	60.2	57.3
Other investments	8.0	1.4
Total investment	68.2	58.7
SATS BRF Food PTE Ltd [Member]
Disclosure of joint ventures [line items]
Goodwill	R$ 6.1	R$ 5.6

XML

16. INVESTMENTS (Details 1) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Disclosure of joint ventures [line items]
Current assets	R$ 19,185.4	R$ 18,893.7
Non-current assets	26,043.1	24,051.2
Current liabilities	14,907.9	12,640.4
Shareholder's equity	11,712.9	12,219.4		R$ 13,836.0	R$ 15,689.9
Book value of investment	7.5	6.4
Dividends declared	25.6	26.9
Net revenues	33,469.4	33,732.9		32,196.6
Net income (loss)	(1,098.9)	(367.4)		R$ 3,130.9
Equity pick-up	25.6	29.2
K&S Alimentos S.A [Member]
Disclosure of joint ventures [line items]
Current assets
Non-current assets	6.7
Current liabilities
Non-current liabilities	R$ 6.7
Shareholder's equity
% of participation	33.33%	0.00%
Book value of investment	R$ 2.2
Dividends declared
Net revenues		24.8	[1]
Net income (loss)		4.7	[1]
Equity pick-up		2.3	[1]
PP-BIO Administracao de bem proprio S.A. [Member]
Disclosure of joint ventures [line items]
Current assets
Non-current assets		5.9
Current liabilities
Non-current liabilities
Shareholder's equity		R$ 5.9
% of participation		33.33%
PP-BIO Administracao de bem proprio S.A. [Member]
Disclosure of joint ventures [line items]
Current assets
Non-current assets	15.9
Current liabilities
Non-current liabilities	R$ 15.9
% of participation	33.33%
Book value of investment	R$ 5.3	R$ 2.0
Dividends declared
Net revenues
Net income (loss)
Equity pick-up
PR-SAD Administracao de bem proprio S.A. [Member]
Disclosure of joint ventures [line items]
Current assets
Non-current assets		13.1
Current liabilities
Non-current liabilities
Shareholder's equity		R$ 13.1
% of participation		33.33%
PR-SAD Administracao de bem proprio S.A. [Member]
Disclosure of joint ventures [line items]
Current assets	49.4
Non-current assets	0.2
Current liabilities	(49.5)
Non-current liabilities	R$ 0.1
% of participation	50.00%
Book value of investment	R$ 4.4	R$ 5.3
Dividends declared
Net revenues
Net income (loss)
Equity pick-up
UP Alimentos Ltda. [Member]
Disclosure of joint ventures [line items]
Current assets	49.4	51.0
Non-current assets	0.2	0.2
Current liabilities	(49.5)	(51.2)
Non-current liabilities	0.1
Shareholder's equity
% of participation	50.00%	50.00%
Book value of investment
Dividends declared	25.6	26.9
Net revenues	174.9	191.3
Net income (loss)	51.1	53.8
Equity pick-up	R$ 25.6	R$ 26.9

[1] On March 18, 2016, the Company acquired control and total shares, being treated as wholly-owned subsidiary from this date and on June 21, 2017 the name and corporate purpose was changed of K&S Alimentos S.A. to BRF Pet S.A.

XML

17. PROPERTY, PLANT AND EQUIPMENT, NET (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017		Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		R$ 11,746.2		R$ 10,915.8
Additions		(8.2)		979.3
Business combinations	[1]	770.7		317.0
Disposals		113.1		(196.3)
Reversals				37.0
Transfers		(195.7)	[2]	(19.5)	[3]
Exchange rate variation		(9.5)		(287.0)
Ending balance		12,190.6		11,746.2
Cost [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		17,359.4		15,871.0
Additions		850.9		1,723.9
Business combinations	[1]	805.9		594.8
Disposals		(258.6)		(381.3)
Reversals
Transfers		(201.2)	[2]	(28.9)	[3]
Exchange rate variation		(23.6)		(420.1)
Ending balance		18,532.9		17,359.4
Cost [Member] | Land [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		575.9		584.7
Additions		6.2		0.5
Business combinations	[1]	123.5		33.2
Disposals		(2.0)		(37.5)
Reversals
Transfers		6.1	[2]	12.4	[3]
Exchange rate variation		(3.5)		(17.4)
Ending balance		706.2		575.9
Cost [Member] | Buildings and improvements [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		5,648.6		5,437.9
Additions		60.2		18.7
Business combinations	[1]	258.8		175.3
Disposals		(36.7)		(127.3)
Reversals
Transfers		183.6	[2]	285.3	[3]
Exchange rate variation		(11.8)		(141.3)
Ending balance		6,102.8		5,648.6
Cost [Member] | Machinery and equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		7,994.1		7,027.1
Additions		57.9		142.2
Business combinations	[1]	389.1		304.9
Disposals		(175.4)		(182.9)
Reversals
Transfers		569.8	[2]	864.8	[3]
Exchange rate variation		45.7		(162.0)
Ending balance		8,881.2		7,994.1
Cost [Member] | Facilities [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		2,047.9		1,854.5
Additions		14.8		1.9
Business combinations	[1]			53.2
Disposals		(25.8)		(13.2)
Reversals
Transfers		137.3	[2]	210.6	[3]
Exchange rate variation		0.8		(59.1)
Ending balance		2,175.0		2,047.9
Cost [Member] | Furniture [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		163.5		137.9
Additions		2.1		3.1
Business combinations	[1]	16.1		12.6
Disposals		(4.2)		(15.4)
Reversals
Transfers		5.8	[2]	14.9	[3]
Exchange rate variation		(11.8)		10.4
Ending balance		171.5		163.5
Cost [Member] | Vehicles [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		27.3		20.3
Additions		0.3		0.1
Business combinations	[1]	4.8		10.7
Disposals		(8.9)		(5.0)
Reversals
Transfers		4.8	[2]	2.6	[3]
Exchange rate variation		0.3		(1.4)
Ending balance		28.6		27.3
Cost [Member] | Construction in progress [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		886.0		789.8
Additions		693.6		1,517.0
Business combinations	[1]	13.6		4.7
Disposals		(5.6)
Reversals
Transfers		(1,091.0)	[2]	(1,376.3)	[3]
Exchange rate variation		(42.7)		(49.2)
Ending balance		453.9		886.0
Cost [Member] | Advances to suppliers [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance		16.1		18.8
Additions		15.8		40.4
Business combinations	[1]			0.2
Disposals
Reversals
Transfers		(17.6)	[2]	(43.2)	[3]
Exchange rate variation		(0.6)		(0.1)
Ending balance		13.7		R$ 16.1
Amortization/Depreciation [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)				(493550.00%)
Beginning balance		(5,613.2)		R$ (727.4)
Additions		(859.1)		(277.8)
Business combinations	[1]	(35.2)		185.0
Disposals		145.5
Reversals				9.4
Transfers		5.5	[2]	133.1	[3]
Exchange rate variation		14.1		(5,613.2)
Ending balance		R$ (6,342.3)		R$ (5,613.2)
Amortization/Depreciation [Member] | Buildings and improvements [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)		3.02%		3.03%
Beginning balance		R$ (1,694.4)		R$ (1,525.9)
Additions		(184.0)		(163.8)
Business combinations	[1]	(11.4)		(76.0)
Disposals		17.0		35.3
Reversals
Transfers		3.7	[2]	6.4	[3]
Exchange rate variation		(3.4)		29.6
Ending balance		R$ (1,872.4)		R$ (1,694.4)
Amortization/Depreciation [Member] | Machinery and equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)		5.93%		5.89%
Beginning balance		R$ (3,193.9)		R$ (2,786.0)
Additions		(567.2)		(464.0)
Business combinations	[1]	(21.0)		(155.6)
Disposals		107.4		128.7
Reversals
Transfers		3.5	[2]	0.4	[3]
Exchange rate variation		14.7		82.6
Ending balance		R$ (3,656.5)		R$ (3,193.9)
Amortization/Depreciation [Member] | Facilities [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)		3.78%		3.79%
Beginning balance		R$ (646.3)		R$ (549.9)
Additions		(91.3)		(85.1)
Business combinations	[1]			(29.3)
Disposals		10.8		6.9
Reversals
Transfers		0.5	[2]		[3]
Exchange rate variation		1.8		11.1
Ending balance		R$ (724.5)		R$ (646.3)
Amortization/Depreciation [Member] | Furniture [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)		8.05%		8.02%
Beginning balance		R$ (66.5)		R$ (64.7)
Additions		(13.4)		(11.8)
Business combinations	[1]			(8.3)
Disposals		3.1		9.7
Reversals
Transfers		(0.9)	[2]	0.1	[3]
Exchange rate variation				8.5
Ending balance		R$ (77.7)		R$ (66.5)
Amortization/Depreciation [Member] | Vehicles [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)		19.99%		20.06%
Beginning balance		R$ (12.1)		R$ (9.0)
Additions		(3.2)		(2.7)
Business combinations	[1]	(2.8)		(8.6)
Disposals		7.2		4.4
Reversals
Transfers		(1.3)	[2]	2.5	[3]
Exchange rate variation		1.0		1.3
Ending balance		R$ (11.2)		R$ (12.1)
Provision for losses [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Weighted average depreciation rate (p.a.)				(1980.00%)
Beginning balance				R$ (17.2)
Additions
Business combinations	[1]
Disposals				37.0
Reversals
Transfers	[3]
Exchange rate variation

[1] Balance arising from business combination with FFM Further in the amount of R$26.4, Banvit Bandirma Vitaminli of R$547.7, Eclipse of R$145.3 and CalchaquI of R$51.3.

[2] Refers to the transfer of R$146.3 to intangible assets, R$35.3 to biological assets and R$13.9 to held for sale.

[3] Refers to the transfer of R$53.3 to intangible assets, R$37.5 to biological assets and R$28.3 to assets held for sale.

XML

17. PROPERTY, PLANT AND EQUIPMENT, NET (Details 1) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	R$ 1,000.2	R$ 945.5
Buildings and improvements [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	138.2	122.2
Machinery and equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	700.0	674.3
Facilities [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	74.0	74.4
Furniture [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	22.7	20.1
Vehicles [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	5.3	5.0
Other [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Total amount of fully depreciated items still operating	R$ 60.0	R$ 49.5

XML

17. PROPERTY, PLANT AND EQUIPMENT, NET (Details 2) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 4,503.8	R$ 4,189.8
Land [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 330.0	R$ 258.9
Type of collateral	Financial/Tax	Financial/Tax
Buildings and improvements [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 1,290.4	R$ 1,253.6
Type of collateral	Financial/Tax	Financial/Tax
Machinery and equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 2,318.7	R$ 2,129.4
Type of collateral	Financial/Labor/Tax/Civil	Financial/Labor/Tax/Civil
Facilities [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 540.9	R$ 523.3
Type of collateral	Financial/Tax	Financial/Tax
Furniture [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 21.9	R$ 23.6
Type of collateral	Financial/Tax	Financial/Tax
Vehicles [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 1.5	R$ 1.0
Type of collateral	Financial/Tax	Financial/Tax
Other [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Book value of the collateral	R$ 0.4	R$ 0.0
Type of collateral	Financial/Tax	Financial/Tax

XML

17. PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017		Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment transfers to assets	R$ (195.7)	[1]	R$ (19.5)	[2]
Amount of capitalized interest	R$ 35.4		R$ 59.1
Percentage of weighted average interest rate utilized	14.73%		10.56%
Intangible assets [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment transfers to assets	R$ 146.3		R$ 53.3
Biological assets [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment transfers to assets	35.3		37.5
Assets held for sale [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property plant and equipment transfers to assets	R$ 13.9		R$ 28.3

[1] Refers to the transfer of R$146.3 to intangible assets, R$35.3 to biological assets and R$13.9 to held for sale.

[2] Refers to the transfer of R$53.3 to intangible assets, R$37.5 to biological assets and R$28.3 to assets held for sale.

XML

18. INTANGIBLE ASSETS (Details) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about intangible assets [line items]
Beginning balance	R$ 6,672.6	R$ 5,010.9
Additions	(247.8)	(130.9)
Disposals	(1.4)	(2.2)
Business combination	632.3	2,560.4
Transfers	146.3	56.2
Exchange rate variation	(4.4)	(821.8)
Ending balance	7,197.6	6,672.6
Cost [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	7,121.6	5,340.4
Additions	52.1	62.7
Disposals	(178.9)	(50.1)
Business combination	632.1	2,564.2
Transfers	146.3	59.0
Exchange rate variation	3.7	(854.6)
Ending balance	7,776.9	7,121.6
Cost [Member] | Al Khan Foodstuff LLC ("AKF") [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	129.5
Additions
Disposals
Business combination	(2.1)	136.5
Transfers		11.0
Exchange rate variation	4.1	(18.0)
Ending balance	131.5	129.5
Cost [Member] | Alimentos Calchaqui Productos 7 S.A. [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	342.0
Additions
Disposals
Business combination	(152.3)	397.8
Transfers
Exchange rate variation	(31.8)	(55.8)
Ending balance	157.9	342.0
Cost [Member] | Avex S.A. [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	49.4	49.4
Additions
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	49.4	49.4
Cost [Member] | Avex [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	18.8	27.6
Additions
Disposals
Business combination
Transfers
Exchange rate variation	(2.7)	(8.8)
Ending balance	16.1	18.8
Cost [Member] | BRF Al Yasra Food K.S.C.C. ("BRF AFC") [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	162.7	162.7
Additions
Disposals
Business combination	(33.4)
Transfers
Exchange rate variation	2.6	(33.4)
Ending balance	131.9	162.7
Cost [Member] | BRF Holland B.V. [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	22.5	27.8
Additions
Disposals
Business combination
Transfers
Exchange rate variation	3.5	(5.3)
Ending balance	26.0	22.5
Cost [Member] | BRF Invicta Ltd [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	119.0	170.7
Additions
Disposals
Business combination
Transfers
Exchange rate variation	12.9	(51.7)
Ending balance	131.9	119.0
Cost [Member] | Danica [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	4.8	7.0
Additions
Disposals
Business combination
Transfers
Exchange rate variation	(0.7)	(2.2)
Ending balance	4.1	4.8
Cost [Member] | Eclipse Holding Cooperatief U.A. [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	209.9
Additions
Disposals
Business combination	(202.1)	230.5
Transfers		0.3
Exchange rate variation	(6.4)	(20.9)
Ending balance	1.4	209.9
Cost [Member] | Eleva Alimentos [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	808.1	808.1
Additions
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	808.1	808.1
Cost [Member] | Federal Foods LLC [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	70.5	84.4
Additions
Disposals
Business combination	(7.3)
Transfers
Exchange rate variation	0.7	(13.9)
Ending balance	63.9	70.5
Cost [Member] | Federal Foods Qatar [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	308.4
Additions
Disposals
Business combination		564.2
Transfers		(182.9)
Exchange rate variation	4.8	(72.9)
Ending balance	313.2	308.4
Cost [Member] | Golden Foods Sales Limited [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	684.5
Additions
Disposals
Business combination		1,079.4
Transfers		(199.1)
Exchange rate variation	87.1	(195.8)
Ending balance	771.6	684.5
Cost [Member] | GQFE Golden Quality Foods Europe [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	2.4
Additions
Disposals
Business combination		3.1
Transfers
Exchange rate variation	0.4	(0.7)
Ending balance	2.8	2.4
Cost [Member] | Incubatorio Paraiso [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	0.7	0.7
Additions
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	0.7	0.7
Cost [Member] | Invicta Food Group [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	0.6	0.9
Additions
Disposals
Business combination
Transfers
Exchange rate variation	0.1	(0.3)
Ending balance	0.7	0.6
Cost [Member] | Paraiso Agroindustrial [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	16.8	16.8
Additions
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	16.8	16.8
Cost [Member] | Perdigao Mato Grosso [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	7.6	7.6
Additions
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	7.6	7.6
Cost [Member] | Quickfood S.A. [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	113.8	167.0
Additions
Disposals
Business combination
Transfers
Exchange rate variation	(16.7)	(53.2)
Ending balance	97.1	113.8
Cost [Member] | Sadia [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	1,214.0	1,214.0
Additions
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	1,214.0	1,214.0
Cost [Member] | Universal Meats Ltd. [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	57.6
Additions
Disposals
Business combination	(10.2)	146.4
Transfers		(61.4)
Exchange rate variation	4.6	(27.4)
Ending balance	52.0	57.6
Cost [Member] | Banvit Bandirma Vitaminli [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance
Additions
Disposals
Business combination	203.8
Transfers
Exchange rate variation	(10.0)
Ending balance	193.8
Cost [Member] | Non-Compete Agreement [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	51.0	15.6
Additions	11.5	18.6
Disposals		(0.3)
Business combination	0.5
Transfers		27.4
Exchange rate variation	(1.0)	(10.3)
Ending balance	62.0	51.0
Cost [Member] | Goodwill [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	4,343.5	2,778.1
Additions
Disposals
Business combination	(203.7)	2,557.9
Transfers		(432.1)
Exchange rate variation	52.4	(560.4)
Ending balance	4,192.2	4,343.5
Cost [Member] | Import Quotas [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	58.2	62.3
Additions
Disposals
Business combination	42.2
Transfers		17.5
Exchange rate variation	11.4	(21.6)
Ending balance	111.8	58.2
Cost [Member] | Outgrowers Relationship [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	14.7	14.2
Additions	0.3	0.5
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	15.0	14.7
Cost [Member] | Trademarks [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	1,313.2	1,372.0
Additions
Disposals
Business combination	386.9
Transfers		5.9
Exchange rate variation	(50.2)	(64.7)
Ending balance	1,649.9	1,313.2
Cost [Member] | Patents [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	6.9	4.8
Additions		2.4
Disposals
Business combination		0.6
Transfers
Exchange rate variation	(0.1)	(0.9)
Ending balance	6.8	6.9
Cost [Member] | Customer Relationship [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	815.2	620.8
Additions
Disposals
Business combination	403.5
Transfers	10.6	370.6
Exchange rate variation	(8.5)	(176.2)
Ending balance	1,220.8	815.2
Cost [Member] | Supplier Relationship [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	14.6	9.7
Additions
Disposals	(2.0)	(6.5)
Business combination
Transfers	(10.6)	16.2
Exchange rate variation	0.1	(4.8)
Ending balance	2.1	14.6
Cost [Member] | Software [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	504.3	462.9
Additions	40.3	41.2
Disposals	(176.9)	(43.3)
Business combination	2.7	5.7
Transfers	146.3	53.5
Exchange rate variation	(0.4)	(15.7)
Ending balance	516.3	504.3
Amortization/Depreciation [Member]
Disclosure of detailed information about intangible assets [line items]
Beginning balance	(449.0)	(329.5)
Additions	(299.9)	(193.6)
Disposals	177.5	47.9
Business combination	0.2	(3.8)
Transfers		(2.8)
Exchange rate variation	(8.1)	32.8
Ending balance	R$ (579.3)	R$ (449.0)
Amortization/Depreciation [Member] | Non-Compete Agreement [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	27.59%	30.07%
Beginning balance	R$ (7.6)	R$ (0.7)
Additions	(16.1)	(7.8)
Disposals		0.3
Business combination
Transfers
Exchange rate variation	0.3	0.6
Ending balance	R$ (23.4)	R$ (7.6)
Amortization/Depreciation [Member] | Import Quotas [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	73.63%	50.00%
Beginning balance	R$ (21.7)
Additions	(63.5)	(25.6)
Disposals
Business combination
Transfers
Exchange rate variation	(7.9)	3.9
Ending balance	R$ (93.1)	R$ (21.7)
Amortization/Depreciation [Member] | Outgrowers Relationship [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	13.15%	12.50%
Beginning balance	R$ (7.7)	R$ (5.8)
Additions	(1.9)	(1.9)
Disposals
Business combination
Transfers
Exchange rate variation
Ending balance	R$ (9.6)	R$ (7.7)
Amortization/Depreciation [Member] | Patents [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	27.42%	24.07%
Beginning balance	R$ (3.9)	R$ (3.0)
Additions	(1.1)	(1.1)
Disposals
Business combination		(0.6)
Transfers
Exchange rate variation	0.1	0.8
Ending balance	R$ (4.9)	R$ (3.9)
Amortization/Depreciation [Member] | Customer Relationship [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	7.59%	7.71%
Beginning balance	R$ (81.3)	R$ (49.8)
Additions	(72.2)	(47.3)
Disposals
Business combination	0.2
Transfers		(2.7)
Exchange rate variation	(1.2)	18.5
Ending balance	R$ (154.5)	R$ (81.3)
Amortization/Depreciation [Member] | Supplier Relationship [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	5.00%	42.00%
Beginning balance	R$ (2.0)	R$ (9.7)
Additions	(0.1)
Disposals	2.0	6.5
Business combination
Transfers
Exchange rate variation		1.2
Ending balance	R$ (0.1)	R$ (2.0)
Amortization/Depreciation [Member] | Software [Member]
Disclosure of detailed information about intangible assets [line items]
Weighted average amortization rate (p.a.)	19.93%	20.00%
Beginning balance	R$ (324.8)	R$ (260.5)
Additions	(145.0)	(109.9)
Disposals	175.5	41.1
Business combination		(3.2)
Transfers		(0.1)
Exchange rate variation	0.6	7.8
Ending balance	R$ (293.7)	R$ (324.8)

XML

18. INTANGIBLE ASSETS (Details 1) - Discounted cash flow [Member]	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
PIB Brazil [Member]
Disclosure of detailed information about intangible assets [line items]
Percentage of discounted rate	2.83%	3.11%	2.56%	0.70%
Inflation Brazil [Member]
Disclosure of detailed information about intangible assets [line items]
Percentage of discounted rate	3.84%	3.95%	4.20%	3.03%

XML

18. INTANGIBLE ASSETS (Details 2)	Dec. 31, 2017 R$ / shares
Disclosure of detailed information about intangible assets [line items]
Apreciation (devaluation) before	1.00%
Apreciation (devaluation) variations	0.00%
Apreciation (devaluation) after	(1.00%)
ONE FOODS [Member]
Disclosure of detailed information about intangible assets [line items]
WACC,before	11.94%
WACC, variations	10.94%
WACC, after	9.94%
EBIT MARGIN, before	14.00%
EBIT MARGIN, variation	R$ 13.00
EBIT MARGIN,after	R$ 12.00
BRAZIL [Member]
Disclosure of detailed information about intangible assets [line items]
WACC,before	12.99%
WACC, variations	11.99%
WACC, after	10.99%
EBIT MARGIN, before	15.82%
EBIT MARGIN, variation	R$ 14.82
EBIT MARGIN,after	R$ 13.82
INTERNATIONAL [Member]
Disclosure of detailed information about intangible assets [line items]
WACC,before	10.51%
WACC, variations	9.51%
WACC, after	8.51%
EBIT MARGIN, before	8.98%
EBIT MARGIN, variation	R$ 7.98
EBIT MARGIN,after	R$ 6.98
SOUTHERN CONE [Member]
Disclosure of detailed information about intangible assets [line items]
WACC,before	14.25%
WACC, variations	13.25%
WACC, after	12.25%
EBIT MARGIN, before	7.86%
EBIT MARGIN, variation	R$ 6.86
EBIT MARGIN,after	R$ 5.86

XML

18. INTANGIBLE ASSETS (Details Narrative)	Dec. 31, 2017	Dec. 31, 2016
Top of range [Member] | Discounted cash flow [Member]
Disclosure of detailed information about intangible assets [line items]
Percentage of discounted rate	9.74%	13.25%

XML

19. LOANS AND FINANCING (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
LoansAndFinancingLineItems [Line Items]
Current			R$ 1,987.9
Non-current			6,655.8
Local currency Debt			8,643.7
Current			1,257.1
Non-current			9,061.6
Foreign currency Debt			10,318.7
Short term Borrowings			3,245.0
Long term Borrowings		R$ 15,413.0	15,717.4
Borrowings		R$ 20,444.4	18,962.4
Working Capital [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		7.79% (8.90% on 12.31.16)
Weighted average interest rate (p.a.)		7.79% (8.90% on 12.31.16)
WAMT	[1]	9 months 18 days
Current		R$ 1,631.5	1,326.1
Non-current		923.9
Local currency Debt		R$ 2,555.4	1,326.1
Charges (p.a.)		23.10% (14.28% on 12.31.16) + e.r. ARS / + e.r US$
Weighted average interest rate (p.a.)		23.10% (14.28% on 12.31.16) + e.r. ARS / + e.r US$
WAMT	[1]	1 year 6 months
Current		R$ 128.1	236.9
Non-current		39.7	55.8
Foreign currency Debt		R$ 167.9	292.7
Certificate Of Agribusiness Receivables [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		96.51% of CDI / IPCA + 5,90% (96.50% of CDI /IPCA + 5.90 on 12.31.16)
Weighted average interest rate (p.a.)		7.41% (13.43% on 12.31.16)
WAMT	[1]	2 years 4 months 24 days
Current		R$ 1,097.9
Non-current		2,473.8
Local currency Debt		R$ 3,571.7
Development Bank Credit Lines [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		Fixed rate / Selic / TJLP + 1.48% (Fixed rate/Selic / TJLP + 0.75% on 12.31.16)
Weighted average interest rate (p.a.)		6.78% (7.93% on 12.31.16)
WAMT	[1]	1 year 8 months 12 days
Current		R$ 313.3	381.3
Non-current		256.8	499.7
Local currency Debt		R$ 570.1	881.0
Charges (p.a.)		UMBNDES + 1.73% (UMBNDES + 2.10% on 12.31.16) + e.r. US$ and other currencies
Weighted average interest rate (p.a.)		6.22% (6.24% on 12.31.16) + e.r. US$ and other currencies
WAMT	[1]	1 year
Current		R$ 2.6	5.9
Non-current		1.0	3.0
Foreign currency Debt		R$ 3.6	8.9
Bonds [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		7.75% (7.75% on 12.31.16)
Weighted average interest rate (p.a.)		7.75% (7.75% on 12.31.16)
WAMT		4 months 24 days
Current		R$ 503.8	4.1
Non-current			498.8
Local currency Debt		R$ 503.8	502.9
Charges (p.a.)		4.08% (4.71% on 12.31.16) + e.r. US$, EUR and ARS
Weighted average interest rate (p.a.)		4.08% (4.71% on 12.31.16) + e.r. US$, EUR and ARS
WAMT		6 years
Current			212.9
Non-current
Foreign currency Debt			212.9
Export Credit Facility [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		100.35% (13.68% on 12.31.16)
Weighted average interest rate (p.a.)		6.91% (13.68% on 12.31.16)
WAMT	[1]	1 year 2 months 12 days
Current		R$ 39.2	72.3
Non-current		1,850.0	1,850.0
Local currency Debt		R$ 1,889.2	1,922.3
Charges (p.a.)		LIBOR + 1.85% (LIBOR + 2.71% on 12.31.16) + e.r. US$
Weighted average interest rate (p.a.)		3.35% (3.85% on 12.31.16) + e.r. US$
WAMT	[1]	2 years 2 months 12 days
Current		R$ 2.6	5.9
Non-current		1.0	3.0
Foreign currency Debt		R$ 3.6	8.9
Special Program Asset Restructuring [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		Fixed rate / IGPM + 4.90% (Fixed rate / IGPM + 4.90% on 12.31.16)
Weighted average interest rate (p.a.)		4.36% (12.09% on 12.31.16)
WAMT	[1]	2 years 2 months 12 days
Current		R$ 3.5	3.5
Non-current		245.8	248.0
Local currency Debt		R$ 249.4	251.6
Other Secured Debts [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		(8.50% on 12.31.16)
Weighted average interest rate (p.a.)		(8.50% on 12.31.16)
Current			32.3
Non-current			97.3
Local currency Debt			129.6
Current			0.8
Non-current
Foreign currency Debt			0.8
Fiscal Incentives [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)		2.40% (2.40% on 12.31.16)
Weighted average interest rate (p.a.)		2.40% (2.40% on 12.31.16)
WAMT	[1]	6 months
Current		R$ 3.6	0.1
Non-current
Local currency Debt		R$ 3.6	0.1
Current			1,438.6
Non-current			9,662.8
Foreign currency Debt			11,101.3
Short term Borrowings			5,031.4
Long term Borrowings			15,413.0
Borrowings			R$ 20,444.4
Advances For Foreign Exchange Rate Contracts [Member]
LoansAndFinancingLineItems [Line Items]
Charges (p.a.)			2.39% (1.76% on 12.31.15) + e.r. US$
Weighted average interest rate (p.a.)			2.39% (1.76% on 12.31.15) + e.r. US$
WAMT	[1]		9 months 18 days
Securitization Of Agribusiness Receivables [Member]
LoansAndFinancingLineItems [Line Items]
Current			R$ 168.1
Non-current			3,462.0
Local currency Debt			R$ 3,630.1

[1] (1) Weighted average maturity in years.

XML

19. LOANS AND FINANCING (Details 1) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
LoansAndFinancingLineItems [Line Items]
Borrowings	R$ 20,444.4	R$ 18,962.4
2018 [Member]
LoansAndFinancingLineItems [Line Items]
Borrowings	5,031.4
2019 [Member]
LoansAndFinancingLineItems [Line Items]
Borrowings	3,983.4
2020 [Member]
LoansAndFinancingLineItems [Line Items]
Borrowings	1,684.7
2021 [Member]
LoansAndFinancingLineItems [Line Items]
Borrowings	125.4
2022 onwards [Member]
LoansAndFinancingLineItems [Line Items]
Borrowings	3,106.2
2022 [Member]
LoansAndFinancingLineItems [Line Items]
Borrowings	R$ 6,512.8

XML

19. LOANS AND FINANCING (Details 2) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
LoansAndFinancingLineItems [Line Items]
Total of loans and financing	R$ 20,444.4	R$ 18,962.4
Mortgage guarantees Related to FINEM-BNDES, FNE-BNB, & tax incentives and other	577.2	1,019.6
Related to FINEM-BNDES [Member]
LoansAndFinancingLineItems [Line Items]
Mortgage guarantees Related to FINEM-BNDES, FNE-BNB, & tax incentives and other	462.8	771.3
Related to FNE-BNB [Member]
LoansAndFinancingLineItems [Line Items]
Mortgage guarantees Related to FINEM-BNDES, FNE-BNB, & tax incentives and other		129.6
Related to tax incentives and other [Member]
LoansAndFinancingLineItems [Line Items]
Mortgage guarantees Related to FINEM-BNDES, FNE-BNB, & tax incentives and other	R$ 114.4	R$ 118.7

XML

19. LOANS AND FINANCING (Details 3) R$ in Millions	Dec. 31, 2017 BRL (R$)
LoansAndFinancingLineItems [Line Items]
Commitments	R$ 6,564.4
2018 [Member]
LoansAndFinancingLineItems [Line Items]
Commitments	4,862.1
2019 [Member]
LoansAndFinancingLineItems [Line Items]
Commitments	922.9
2020 [Member]
LoansAndFinancingLineItems [Line Items]
Commitments	346.9
2021 [Member]
LoansAndFinancingLineItems [Line Items]
Commitments	208.7
2022 onwards [Member]
LoansAndFinancingLineItems [Line Items]
Commitments	100.8
2023 onwards [Member]
LoansAndFinancingLineItems [Line Items]
Commitments	R$ 123.0

XML

19. LOANS AND FINANCING (Detail Narratives) - BRL (R$) R$ / shares in Units, R$ in Millions	Sep. 14, 2016	May 28, 2015	May 15, 2014	Jan. 28, 2010	Dec. 16, 2016	Sep. 29, 2016	Apr. 19, 2016	Jan. 12, 2016	Sep. 29, 2015	Jun. 20, 2013	May 15, 2013	Jun. 26, 2012	Jun. 06, 2012	May 31, 2007
Disclosure of continuing involvement in derecognised financial assets [line items]
Securitization of receivables					R$ 1,500.0
USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Line of credit, revolving credit facility								R$ 1,000.0
Instrument Due on October 01, 2018 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Securitization of receivables									R$ 1,000.0
Interest rate									96.90%
Instrument Due on April 19, 2019 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Securitization of receivables							R$ 1,000.0
Interest rate							96.50%
Instrument Due on December 16, 2020 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate					96.00%
Instrument Due on December 18, 2023 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate					5.897%
Instrument Due on May 24, 2017 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Premium paid, net of interest		R$ 14.6
Instrument Due on May 24, 2017 [Member] | USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate														6.88%
Bonds issued														R$ 250.0
Amount of senior notes exchanged										R$ 29.3
Repurchase of senior notes		47.0	R$ 61.0
Outstanding balance of notes		112.8
Premium paid, net of interest		4.7
Instrument Due on May 22, 2018 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate											7.75%
Bonds issued											R$ 500.0
Percentage of yield to maturity											R$ 7.75
Instrument Due on January 28, 2020 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Amount of senior notes exchanged		120.7
Repurchase of senior notes	R$ 104.9	101.4
Outstanding balance of notes		118.3
Premium paid, net of interest	13.4	52.0
Senior notes issued		750.0
Instrument Due on January 28, 2020 [Member] | USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate				7.25%
Amount of senior notes exchanged				R$ 29.3						R$ 120.7
Repurchase of senior notes	32.2	101.4	R$ 409.6	47.0
Outstanding balance of notes		118.3		112.8
Premium paid, net of interest	4.1	16.0		14.6
Senior notes issued				R$ 750.0
Percentage of effective interest rate				7.54%
Instrument Due on June 6, 2022 [Member]
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate												5.88%
Repurchase of senior notes	176.7
Outstanding balance of notes		258.6
Premium paid, net of interest	18.6
Senior notes issued												R$ 250.0
Percentage of effective interest rate												5.50%
Instrument Due on June 6, 2022 [Member] | USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate													5.88%
Repurchase of senior notes	54.2	577.1
Outstanding balance of notes		172.9
Premium paid, net of interest	R$ 5.7	R$ 79.4
Senior notes issued													R$ 500.0
Percentage of effective interest rate													6.00%
Instrument Due on May 03, 2022 [Member] | Euro Member Countries, Euro
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate		2.75%
Senior notes issued		R$ 500.0
Percentage of yield to maturity		R$ 2.822
Instrument Due on May 22, 2023 [Member] | USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate											3.95%
Bonds issued											R$ 500.0
Percentage of yield to maturity											R$ 4.135
Instrument Due on May 22, 2024 [Member] | USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate			4.75%
Bonds issued			R$ 750.0
Percentage of yield to maturity			R$ 4.952
Instrument Due on September 29, 2026 [Member] | USD
Disclosure of continuing involvement in derecognised financial assets [line items]
Interest rate						4.35%
Senior notes issued						R$ 500.0
Percentage of yield to maturity						R$ 4.625

XML

20. TRADE ACCOUNTS PAYABLE (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
TradeAccountsPayableLineItems [Line Items]
Adjustment to present value	R$ (52.8)	R$ (48.9)
Trade and accounts payable	6,445.5	5,839.8
Domestic [Member]
TradeAccountsPayableLineItems [Line Items]
Third parties	4,451.1	4,148.1
Related parties	16.6	13.1
Total	4,467.7	4,161.2
Foregin [Member]
TradeAccountsPayableLineItems [Line Items]
Third parties	2,030.6	1,727.5
Related parties
Total	R$ 2,030.6	R$ 1,727.5

XML

20. TRADE ACCOUNTS PAYABLE (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Trade Accounts Payable Details Narrative
Average payment period	97 days	99 days
Trade accounts payable related to supply chain financing	R$ 1,787.7	R$ 1,556.5

XML

21. SUPPLY CHAIN FINANCE (Details) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
SupplyChainFinanceLineItems [Line Items]
Suppliers	R$ 715.2	R$ 1,335.6
Domestic suppliers [Member]
SupplyChainFinanceLineItems [Line Items]
Suppliers	518.4	1,007.1
Foreign suppliers [Member]
SupplyChainFinanceLineItems [Line Items]
Suppliers	R$ 196.8	R$ 328.5

XML

21. SUPPLY CHAIN FINANCE (Details Narratives)	Dec. 31, 2017	Dec. 31, 2016
Domestic suppliers [Member] | Bottom of range [Member]
SupplyChainFinanceLineItems [Line Items]
Discount rates applied on transactions	0.57%	1.08%
Domestic suppliers [Member] | Top of range [Member]
SupplyChainFinanceLineItems [Line Items]
Discount rates applied on transactions	0.84%	1.33%
Foreign suppliers [Member] | Bottom of range [Member]
SupplyChainFinanceLineItems [Line Items]
Discount rates applied on transactions	0.19%	0.17%
Foreign suppliers [Member] | Top of range [Member]
SupplyChainFinanceLineItems [Line Items]
Discount rates applied on transactions	0.29%	0.25%

XML

22. DERIVATIVE FINANCIAL INSTRUMENTS (Details) - BRL (R$) R$ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Current assets	R$ 90,500	R$ 198,000
Current liabilities	(299,500)	529,600
Designated as Cash Flow Hedge [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	27,500	197,400
Liabilities	(208,800)	(222,900)
Designated as Cash Flow Hedge [Member] | Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(6,800)	(1,800)
Designated as Cash Flow Hedge [Member] | Commodities (Soy Meal) Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(3,000)	(900)
Designated as Cash Flow Hedge [Member] | Currency Option Contracts [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(25,900)	(35,100)
Designated as Cash Flow Hedge [Member] | Deliverable Forwards Contracts [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets		(300)	R$ (33,800)
Designated as Cash Flow Hedge [Member] | Commodities (Corn) Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(4,600)	(600)
Designated as Cash Flow Hedge [Member] | Exchange Rate Contracts Currency (Swap) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(166,300)	(184,200)
Designated as Cash Flow Hedge [Member] | Commodities Soybean Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(100)
Designated as Cash Flow Hedge [Member] | Com option contract [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(600)
Designated as Cash Flow Hedge [Member] | Soybean option contract [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(1,500)
Designated as Cash Flow Hedge [Member] | Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	1,100	76,300
Designated as Cash Flow Hedge [Member] | Currency Option Contracts [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	23,600	118,700
Designated as Cash Flow Hedge [Member] | Non-Deliverable Forward of Commodities (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	800	2,400
Designated as Cash Flow Hedge [Member] | Commodities Soy Non-Deliverable Forward of Commodities (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	1,100
Designated as Cash Flow Hedge [Member] | Com option contract [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	800
Designated as Cash Flow Hedge [Member] | Commodities Soybean Oil Non Deliverable Forward [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	100
Non Derivatives Designated as Cash Flow Hedges [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	63,000	400
Liabilities	(10,600)	(306,700)
Non Derivatives Designated as Cash Flow Hedges [Member] | Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(2,000)	(83,000)
Non Derivatives Designated as Cash Flow Hedges [Member] | Exchange Rate Contracts Currency (Swap) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(86,500)	(218,500)
Non Derivatives Designated as Cash Flow Hedges [Member] | Dollar future contracts - BM&FBovespa
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	(200)	(5,200)
Non Derivatives Designated as Cash Flow Hedges [Member] | Non-Deliverable Forward (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets			10,700
Non Derivatives Designated as Cash Flow Hedges [Member] | Non-Deliverable Forward of Commodities (NDF) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets			R$ 2,200
Non Derivatives Designated as Cash Flow Hedges [Member] | Exchange Rate Contracts Currency (Swap) [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	25,100	400
Non Derivatives Designated as Cash Flow Hedges [Member] | Dollar Future Contracts - BM&FBOVESPA [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets
Non Derivatives Designated as Cash Flow Hedges [Member] | Non deliverable forward of currency [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	36,400
Non Derivatives Designated as Cash Flow Hedges [Member] | Currency Option Contracts [Member]
OtherFinancialAssetsAndLiabilitiesLineItems [Line Items]
Assets	R$ 1,500

XML

23. LEASES (Details) R$ in Millions	Dec. 31, 2017 BRL (R$)
Disclosure of finance lease and operating lease by lessee [line items]
Total	R$ 655.5
2018 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	374.9
2019 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	76.8
2020 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	44.6
2021 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	34.5
2022 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	31.7
2023 onwards [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	R$ 93.0

XML

23. LEASES (Details 1) - BRL (R$) R$ in Millions		Dec. 31, 2017	Dec. 31, 2016
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		R$ 240.5	R$ 194.8
Cost [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		430.4	341.1
Cost [Member] | Software [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		97.1	78.7
Cost [Member] | Machinery and equipment [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		98.1	115.8
Cost [Member] | Vehicles [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		0.3	0.5
Cost [Member] | Land [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		1.4	1.7
Cost [Member] | Buildings and improvements [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		218.8	144.4
Cost [Member] | Facilities [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		14.7
Accumulated Depreciation [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		(189.9)	(146.3)
Accumulated Depreciation [Member] | Software [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		R$ (84.6)	R$ (63.5)
Weighted average interest rate	[1]	80.00%	80.00%
Accumulated Depreciation [Member] | Machinery and equipment [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		R$ (45.3)	R$ (38.4)
Weighted average interest rate	[1]	44.88%	44.88%
Accumulated Depreciation [Member] | Vehicles [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		R$ (0.2)	R$ (0.3)
Weighted average interest rate	[1]	20.00%	20.00%
Accumulated Depreciation [Member] | Buildings and improvements [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		R$ (59.1)	R$ (44.1)
Weighted average interest rate	[1]	8.33%	8.33%
Accumulated Depreciation [Member] | Facilities [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Finance leases mainly for the acquisitions		R$ (0.7)
Weighted average interest rate	[1]	6.67%	6.67%

[1] The period of depreciation of leased assets corresponds to the lowest of term of the contract and the useful life of the asset, as determined by IAS 17.

XML

23. LEASES (Details 2) R$ in Millions	Dec. 31, 2017 BRL (R$)
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	R$ 232.6
Interest	120.2
Minimum future payments	352.8
2018 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	51.7
Interest	20.9
Minimum future payments	72.5
2019 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	43.3
Interest	20.2
Minimum future payments	63.5
2020 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	30.4
Interest	15.0
Minimum future payments	45.4
2021 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	20.4
Interest	9.0
Minimum future payments	29.4
2022 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	16.1
Interest	8.3
Minimum future payments	24.4
2023 onwards [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Present value of minimum payments	70.7
Interest	46.8
Minimum future payments	R$ 117.6

XML

23. LEASES (Details 3) R$ in Millions	Dec. 31, 2017 BRL (R$)
Disclosure of finance lease and operating lease by lessee [line items]
Total	R$ 122.5
2018 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total
2019 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	9.4
2020 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	9.4
2021 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	9.4
2022 [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	9.4
2023 onwards [Member]
Disclosure of finance lease and operating lease by lessee [line items]
Total	R$ 84.9

XML

23. LEASES (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Leases Details Narrative
Operating lease agreements recognized as expense	R$ 306.7	R$ 308.3

XML

24. SHARE BASED PAYMENT (Details)	12 Months Ended
	Dec. 31, 2017
Plan I [Member] | Period 1 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	1/3
Deadline	1 year
Plan I [Member] | Period 2 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	2/3
Deadline	2 years
Plan I [Member] | Period 3 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	3/3
Deadline	3 years
Plan II [Member] | Period 1 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	1/4
Deadline	1 year
Plan II [Member] | Period 2 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	2/4
Deadline	2 years
Plan II [Member] | Period 3 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	3/4
Deadline	3 years
Plan II [Member] | Period 4 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Quantity	4/4
Deadline	4 years

XML

24. SHARE BASED PAYMENT (Details 1)	1 Months Ended			12 Months Ended
	Nov. 30, 2017 Number	Aug. 31, 2017 Number	Mar. 31, 2017 Number	Dec. 31, 2017 shares R$ / shares	Dec. 31, 2016 Number
Disclosure of terms and conditions of share-based payment arrangement [line items]
Options granted	290,771	716,846	863,528
Outstanding options				12,872,189	16,506,807
Plan I [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Options granted | shares				12,355,929
Outstanding options | shares				4,560,896
Plan I [Member] | Period 1 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				May 02, 2013
Beginning of the year				May 01, 2014
End of the year				May 01, 2018
Options granted | shares				3,490,201
Outstanding options | shares				304,968
Fair value of the option				R$ 11.88
Price of converted share Grant date				46.86
Price of converted share Updated IPCA				R$ 62.12
Plan I [Member] | Period 2 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Apr. 04, 2014
Beginning of the year				Apr. 03, 2015
End of the year				Apr. 03, 2019
Options granted | shares				1,552,564
Outstanding options | shares				483,201
Fair value of the option				R$ 12.56
Price of converted share Grant date				44.48
Price of converted share Updated IPCA				R$ 55.85
Plan I [Member] | Period 3 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				May 02, 2014
Beginning of the year				May 01, 2015
End of the year				May 01, 2019
Options granted | shares				1,610,450
Outstanding options | shares				670,107
Fair value of the option				R$ 14.11
Price of converted share Grant date				47.98
Price of converted share Updated IPCA				R$ 59.84
Plan I [Member] | Period 4 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Dec. 18, 2014
Beginning of the year				Dec. 17, 2015
End of the year				Dec. 17, 2019
Options granted | shares				5,702,714
Outstanding options | shares				3,102,620
Fair value of the option				R$ 14.58
Price of converted share Grant date				63.49
Price of converted share Updated IPCA				R$ 77.15
Plan II [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Options granted | shares				13,230,252
Outstanding options | shares				7,604,473
Plan II [Member] | Period 1 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Oct. 01, 2015
Beginning of the year				Oct. 01, 2016
End of the year				Oct. 01, 2021
Options granted | shares
Outstanding options | shares
Fair value of the option				R$ 20.64
Price of converted share Grant date				70.09
Price of converted share Updated IPCA				R$ 75.97
Plan II [Member] | Period 2 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Dec. 07, 2015
Beginning of the year				Dec. 06, 2016
End of the year				Dec. 06, 2021
Options granted | shares
Outstanding options | shares
Fair value of the option				R$ 17.31
Price of converted share Grant date				56.00
Price of converted share Updated IPCA
Plan II [Member] | Period 3 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Apr. 26, 2016
Beginning of the year				Apr. 30, 2017
End of the year				Dec. 30, 2022
Options granted | shares				8,724,733
Outstanding options | shares				4,375,000
Fair value of the option				R$ 9.21
Price of converted share Grant date				56.00
Price of converted share Updated IPCA				R$ 59.09
Plan II [Member] | Period 4 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				May 31, 2016
Beginning of the year				May 31, 2017
End of the year				Dec. 30, 2022
Options granted | shares				3,351,220
Outstanding options | shares				2,303,260
Fair value of the option				R$ 10.97
Price of converted share Grant date				46.68
Price of converted share Updated IPCA				R$ 48.87
Plan II [Member] | Period 5 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Mar. 30, 2017
Beginning of the year				Mar. 30, 2018
End of the year				Dec. 29, 2023
Options granted | shares				863,528
Outstanding options | shares				635,442
Fair value of the option				R$ 9.45
Price of converted share Grant date				38.43
Price of converted share Updated IPCA				R$ 39.01
Plan II [Member] | Period 6 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date				Dec. 01, 2017
Beginning of the year				Dec. 01, 2018
End of the year				Dec. 29, 2023
Options granted | shares				290,771
Outstanding options | shares				290,771
Fair value of the option				R$ 7.91
Price of converted share Grant date				41.69
Price of converted share Updated IPCA				R$ 41.69

XML

24. SHARE BASED PAYMENT (Details 2) R$ in Thousands	12 Months Ended
	Dec. 31, 2017 BRL (R$) shares
Restricted Stock Plan Due August 31, 2019 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Grant date	08.31.17
Shares granted	716,846
Outstanding shares	706,820
Fair value of the shares | R$	R$ 41,850
Restricted Stock Plan [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Shares granted	716,846
Outstanding shares	706,820

XML

24. SHARE BASED PAYMENT (Details 3)	1 Months Ended			12 Months Ended
	Nov. 30, 2017 Number	Aug. 31, 2017 Number	Mar. 31, 2017 Number	Dec. 31, 2017 shares Number
Disclosure of defined benefit plans [line items]
Outstanding options as of (Begninning)				16,506,807
Issued - grant of 2017	290,771	716,846	863,528
Exercised:
Outstanding options as of (Ending) | shares				12,872,189
Grant of 2017
Disclosure of defined benefit plans [line items]
Forfeited:				(228,086)
Grant of 2017 (Restricted stock)
Disclosure of defined benefit plans [line items]
Forfeited:				(10,026)
Grant of 2016
Disclosure of defined benefit plans [line items]
Forfeited:				(2,681,350)
Grant of 2014
Disclosure of defined benefit plans [line items]
Forfeited:				(1,725,218)
Grant 4 [Member]
Disclosure of defined benefit plans [line items]
Forfeited:				(152,145)
Grant of 2013
Disclosure of defined benefit plans [line items]
Forfeited:				(415,017)
Grant of 2012
Disclosure of defined benefit plans [line items]
Forfeited:				(293,921)

XML

24. SHARE BASED PAYMENT (Details 4)	12 Months Ended
	Dec. 31, 2016 R$ / shares
Plan I [Member]
Expected maturity of the option:
Exercise in the 1st year	3 years
Exercise in the 2nd year	3 years 6 months
Exercise in the 3rd year	4 years
Risk-free interest rate	5.09%
Volatility	26.05%
Expected dividends over shares	1.236%
Expected inflation rate	R$ 3.71
Plan II [Member]
Expected maturity of the option:
Exercise in the 1st year	3 years 6 months
Exercise in the 2nd year	4 years
Exercise in the 3rd year	4 years
Exercise in the 4th year	5 years
Risk-free interest rate	6.25%
Volatility	27.07%
Expected dividends over shares	2.40%
Expected inflation rate	R$ 3.79

XML

24. SHARE BASED PAYMENT (Details Narrative) R$ / shares in Units, R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$) Number R$ / shares	Dec. 31, 2016 BRL (R$) R$ / shares	Dec. 31, 2015 BRL (R$)
Share Based Payment Details Narrative
Weighted average exercise prices of the outstanding options	R$ 60.29
Weighted average of the remaining contractual term	34 months
Capital reserve | R$	R$ 115.1	R$ 41.0	R$ 7.0
Expense from share-based payment transactions with employees | R$		R$ 43.5
Number of share exercised | Number
Average price per share (in dollars per share)	R$ 53.60
Weighted average fair value of options outstanding	R$ 11.36	R$ 11.54

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details)	12 Months Ended
	Dec. 31, 2017
Plan I [Member]
Disclosure of defined benefit plans [line items]
Modality	Defined Benefit
Adhesions	Closed
Plan II [Member]
Disclosure of defined benefit plans [line items]
Modality	Defined Benefit
Adhesions	Closed
Plan III [Member]
Disclosure of defined benefit plans [line items]
Modality	Defined Contribution
Adhesions	Open
FAF [Member]
Disclosure of defined benefit plans [line items]
Modality	Defined Benefit
Adhesions	Closed

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 1) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
FAF [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance
Ending balance
Changes in actuarial obligation [Roll Forward]
Beginning balance
Ending balance
Rollforward of assets fair value [Roll Forward]
Beginning balance
Ending balance
Rollforward of comprehensive income [Roll Forward]
Beginning balance	23.4	27.4
Reversion to statement of income	(23.3)	(27.4)
Ending balance	26.8	23.4
Costs recognized in statement of income [Roll Forward]
Costs recognized in statement of income	(26.8)	(23.4)
Estimated costs for the next period
Costs of defined benefit	(28.0)	(26.8)
Estimated costs for the next period	(28.0)	(26.8)
FAF [Member] | Present value of defined benefit obligation [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	2,275.9	2,000.5
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	2,000.5	1,675.5
Interest income	217.3	197.1
Ending balance	2,275.9	2,000.5
Changes in actuarial obligation [Roll Forward]
Beginning balance	2,000.5	1,675.5
Interest income	217.3	197.1
Current service cost	26.8	23.4
Benefit paid	(117.5)	(105.0)
Contributions of the sponsor		0.3
Actuarial gains - experience	(48.7)	27.5
Actuarial gains (losses) - hypothesis	197.6	153.5
Actuarial gains - demographic hypothesis		28.3
Ending balance	2,275.9	2,000.5
Rollforward of assets fair value [Roll Forward]
Beginning balance	2,000.5	1,675.5
Interest income	217.3	197.1
Benefit paid	(117.5)	(105.0)
Contributions paid by the employee		0.3
Ending balance	2,275.9	2,000.5
Rollforward of comprehensive income [Roll Forward]
Actuarial gains (losses)	(148.9)	(209.2)
Costs recognized in statement of income [Roll Forward]
Current service costs	(26.8)	(23.4)
Interest income in statement of income	(217.3)	(197.1)
Interest income	(217.3)	(197.1)
FAF [Member] | Plan assets [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	(3,077.4)	(2,838.8)
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	(2,838.8)	(2,419.0)
Interest income	(311.2)	(287.4)
Ending balance	(3,077.4)	(2,838.8)
Changes in actuarial obligation [Roll Forward]
Beginning balance	(2,838.8)	(2,419.0)
Interest income	(311.2)	(287.4)
Benefit paid	117.5	105.0
Contributions of the sponsor		(0.3)
Ending balance	(3,077.4)	(2,838.8)
Rollforward of assets fair value [Roll Forward]
Beginning balance	(2,838.8)	(2,419.0)
Interest income	(311.2)	(287.4)
Transfers		(38.0)
Benefit paid	117.5	105.0
Contributions paid by the Company		(0.1)
Contributions paid by the employee		(0.3)
Return on assets higher (lower) than projection	(45.0)	(237.0)
Early elimination of obligations		38.0
Ending balance	(3,077.4)	(2,838.8)
Rollforward of comprehensive income [Roll Forward]
Return on assets higher (lower) than projection	(45.0)	(237.0)
Costs recognized in statement of income [Roll Forward]
Interest income in statement of income	311.2	287.4
Projected return on assets	311.2	287.4
Interest income	311.2	287.4
FAF [Member] | Surplus [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	(801.5)	(838.3)
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	(838.3)
Ending balance	(801.5)	(838.3)
Changes in actuarial obligation [Roll Forward]
Beginning balance	(838.3)
Ending balance	(801.5)	(838.3)
Rollforward of assets fair value [Roll Forward]
Beginning balance	(838.3)
Ending balance	(801.5)	(838.3)
FAF [Member] | Effect of asset ceiling [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	801.5	838.3
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	838.3	743.6
Interest income	93.9	90.3
Changes in surplus of asset ceiling	(130.7)	4.4
Ending balance	801.5	838.3
Changes in actuarial obligation [Roll Forward]
Beginning balance	838.3	743.6
Interest income	93.9	90.3
Ending balance	801.5	838.3
Rollforward of assets fair value [Roll Forward]
Beginning balance	838.3	743.6
Interest income	93.9	90.3
Ending balance	801.5	838.3
Rollforward of comprehensive income [Roll Forward]
Changes on irrecoverable surplus	(130.7)	4.4
Costs recognized in statement of income [Roll Forward]
Interest income in statement of income	(93.9)	(90.3)
Interest income	(93.9)	(90.3)
Plans I and II [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	(2.2)	(3.2)
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	(3.2)
Ending balance	(2.2)	(3.2)
Changes in actuarial obligation [Roll Forward]
Beginning balance	(3.2)
Ending balance	(2.2)	(3.2)
Rollforward of assets fair value [Roll Forward]
Beginning balance	(3.2)
Ending balance	(2.2)	(3.2)
Rollforward of comprehensive income [Roll Forward]
Beginning balance	(2.1)	(1.5)
Reversion to statement of income	2.1	1.5
Ending balance	(1.3)	(2.1)
Costs recognized in statement of income [Roll Forward]
Costs recognized in statement of income	0.4	0.6
Estimated costs for the next period
Costs of defined benefit	0.2	0.4
Estimated costs for the next period	0.2	0.4
Plans I and II [Member] | Present value of defined benefit obligation [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	16.0	15.2
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	15.2	12.9
Interest income	1.6	1.5
Ending balance	16.0	15.2
Changes in actuarial obligation [Roll Forward]
Beginning balance	15.2	12.9
Interest income	1.6	1.5
Current service cost
Benefit paid	(1.5)	(1.2)
Contributions of the sponsor
Actuarial gains - experience	(0.6)	1.0
Actuarial gains (losses) - hypothesis	1.2	1.0
Actuarial gains - demographic hypothesis
Ending balance	16.0	15.2
Rollforward of assets fair value [Roll Forward]
Beginning balance	15.2	12.9
Interest income	1.6	1.5
Benefit paid	(1.5)	(1.2)
Contributions paid by the employee
Ending balance	16.0	15.2
Rollforward of comprehensive income [Roll Forward]
Actuarial gains (losses)	(0.6)	(2.1)
Costs recognized in statement of income [Roll Forward]
Current service costs
Interest income in statement of income	(1.6)	(1.5)
Interest income	(1.6)	(1.5)
Plans I and II [Member] | Plan assets [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	(26.7)	(26.4)
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	(26.4)	(21.9)
Interest income	(2.9)	(2.6)
Ending balance	(26.7)	(26.4)
Changes in actuarial obligation [Roll Forward]
Beginning balance	(26.4)	(21.9)
Interest income	(2.9)	(2.6)
Benefit paid	1.5	1.2
Contributions of the sponsor
Ending balance	(26.7)	(26.4)
Rollforward of assets fair value [Roll Forward]
Beginning balance	(26.4)	(21.9)
Interest income	(2.9)	(2.6)
Transfers
Benefit paid	1.5	1.2
Contributions paid by the Company
Contributions paid by the employee
Return on assets higher (lower) than projection	1.2	(3.1)
Early elimination of obligations
Ending balance	(26.7)	(26.4)
Rollforward of comprehensive income [Roll Forward]
Return on assets higher (lower) than projection	1.2	(3.1)
Costs recognized in statement of income [Roll Forward]
Interest income in statement of income	2.9	2.6
Projected return on assets	2.9	2.6
Interest income	2.9	2.6
Plans I and II [Member] | Surplus [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	(10.7)	(11.3)
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	(11.3)
Ending balance	(10.7)	(11.3)
Changes in actuarial obligation [Roll Forward]
Beginning balance	(11.3)
Ending balance	(10.7)	(11.3)
Rollforward of assets fair value [Roll Forward]
Beginning balance	(11.3)
Ending balance	(10.7)	(11.3)
Plans I and II [Member] | Effect of asset ceiling [Member]
Disclosure of defined benefit plans [line items]
Net acturial asset	8.5	8.0
Rollforward of surplus of asset ceiling [Roll Forward]
Beginning balance	8.0	4.4
Interest income	0.9	0.5
Changes in surplus of asset ceiling	(0.5)	3.1
Ending balance	8.5	8.0
Changes in actuarial obligation [Roll Forward]
Beginning balance	8.0	4.4
Interest income	0.9	0.5
Ending balance	8.5	8.0
Rollforward of assets fair value [Roll Forward]
Beginning balance	8.0	4.4
Interest income	0.9	0.5
Ending balance	8.5	8.0
Rollforward of comprehensive income [Roll Forward]
Changes on irrecoverable surplus	(0.5)	3.1
Costs recognized in statement of income [Roll Forward]
Interest income in statement of income	(0.9)	(0.5)
Interest income	R$ (0.9)	R$ (0.5)

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 2) - Number	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
FAF [Member]
Disclosure of defined benefit plans [line items]
Discount rate	9.74%	11.20%
Inflation rate	4.25%	4.85%
Wage growth rate	4.93%	5.53%
Number of active participants	7,924	8,384
Number of participants in direct proportional benefit	10	41
Number of assisted beneficiary participants	6,233	5,984
FAF [Member] | Schedule of mortality [Member]
Disclosure of defined benefit plans [line items]
Schedule of mortality & disabled mortality	AT-2000	AT-2000
FAF [Member] | Schedule of disabled mortality [Member]
Disclosure of defined benefit plans [line items]
Schedule of mortality & disabled mortality	RRB-1983	RRB-1983
Plans I and II [Member]
Disclosure of defined benefit plans [line items]
Discount rate	9.72%	11.25%
Inflation rate	4.25%	4.85%
Wage growth rate
Number of active participants
Number of participants in direct proportional benefit
Number of assisted beneficiary participants	51	54
Plans I and II [Member] | Schedule of mortality [Member]
Disclosure of defined benefit plans [line items]
Schedule of mortality & disabled mortality	AT-2000	AT-2000
Plans I and II [Member] | Schedule of disabled mortality [Member]
Disclosure of defined benefit plans [line items]
Schedule of mortality & disabled mortality	RRB-1983	RRB-1983

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 3) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
FAF [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 3,077.4	R$ 2,838.6
Percentage of plan assets at fair value	100.00%	100.00%
% of nominal return on assets	10.90%	14.90%
FAF [Member] | Fixed income [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 2,238.1	R$ 2,110.8
Percentage of plan assets at fair value	72.70%	74.40%
FAF [Member] | Variable income [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 363.6	R$ 339.8
Percentage of plan assets at fair value	11.80%	12.00%
FAF [Member] | Real estate [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 197.7	R$ 227.9
Percentage of plan assets at fair value	6.40%	8.00%
FAF [Member] | Structured investments [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 257.5	R$ 141.6
Percentage of plan assets at fair value	8.40%	5.00%
FAF [Member] | Transactions with participants [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 20.4	R$ 18.5
Percentage of plan assets at fair value	0.70%	0.60%
Plans I and II [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 26.7	R$ 26.5
Percentage of plan assets at fair value	100.00%	100.00%
% of nominal return on assets	8.92%	13.19%
Plans I and II [Member] | Fixed income [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 23.1	R$ 23.0
Percentage of plan assets at fair value	86.40%	87.10%
Plans I and II [Member] | Variable income [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 2.5	R$ 2.9
Percentage of plan assets at fair value	9.30%	10.80%
Plans I and II [Member] | Real estate [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value
Percentage of plan assets at fair value	0.00%
Plans I and II [Member] | Structured investments [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value	R$ 1.1	R$ 0.5
Percentage of plan assets at fair value	4.10%	1.90%
Plans I and II [Member] | Transactions with participants [Member]
Disclosure of defined benefit plans [line items]
Plan assets at fair value		R$ 0.1
Percentage of plan assets at fair value	0.20%	0.20%

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 4) R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$) Number
Disclosure of defined benefit plans [line items]
2018	R$ 76.6
2019	25.2
2020	30.2
2021	32.1
2022	31.5
2023 to 2027	R$ 164.7
Weighted average duration - in years | Number	7
FAF [Member]
Disclosure of defined benefit plans [line items]
2018	R$ 128.7
2019	137.5
2020	147.6
2021	160.1
2022	171.8
2023 to 2027	R$ 1,039.3
Weighted average duration - in years | Number	12.48
Plans I and II [Member]
Disclosure of defined benefit plans [line items]
2018	R$ 1.2
2019	1.3
2020	1.3
2021	1.4
2022	1.4
2023 to 2027	R$ 7.7
Weighted average duration - in years | Number	10.23

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 5) - FAF [Member] R$ in Millions	Dec. 31, 2017 BRL (R$)
Discount rate [Member]
Disclosure of defined benefit plans [line items]
Assumptions utilized	9.74%
Average rate	10.74%
Actuarial liabilities	R$ (252.0)	[1]
Average rate	8.74%
Actuarial liabilities	R$ 292.7	[1]
Wage growth rate [Member]
Disclosure of defined benefit plans [line items]
Assumptions utilized	4.93%
Average rate	5.93%
Actuarial liabilities	R$ 74.7	[1]
Average rate	3.93%
Actuarial liabilities	R$ (53.1)	[1]

[1] Variation of actuarial liabilities.

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 6) - BRL (R$) R$ in Millions		Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [line items]
Recognised liabilities defined benefit plan		R$ 394.8	R$ 330.1
Current		85.2	76.7
Non-current		309.6	253.4
Medical plan [Member]
Disclosure of defined benefit plans [line items]
Recognised liabilities defined benefit plan			112.3
Medical plan [Member] | Present value of defined benefit obligation [Member]
Disclosure of defined benefit plans [line items]
Recognised liabilities defined benefit plan		132.8
F.G.T.S. Penalty [Member]
Disclosure of defined benefit plans [line items]
Recognised liabilities defined benefit plan	[1]	161.3	137.2
Award for length of service [Member]
Disclosure of defined benefit plans [line items]
Recognised liabilities defined benefit plan		49.3	52.0
OtherMember
Disclosure of defined benefit plans [line items]
Recognised liabilities defined benefit plan	[2]	R$ 51.4	R$ 28.6

[1] (1) FGTS - Government Severance Indemnity Fund for Employees

[2] Post-employment benefit paid at the moment of employee's termination in the amount of R$20.1 arising from business combination with Banvit.

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 7) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Medical plan [Member]
Rollforward of comprehensive income [Roll Forward]
Beginning balance		R$ (31.2)	R$ (59.0)
Actuarial gains (losses)		(6.2)	27.8
Ending balance		(37.4)	(31.2)
Estimated costs for the next period [Roll Forward]
Current service costs		(0.2)	(0.2)
Interest on actuarial liabilities		(12.7)	(12.3)
Past service costs - changes in plan			(2.9)
Estimated costs for the next period		(12.9)	(15.4)
Medical plan [Member] | Present value of defined benefit obligation [Member]
Composition of actuarial liabilities [Roll Forward]
Present value of actuarial liabilities				R$ 132.8	R$ 112.3
Net liabilities		132.8	112.3	132.8	112.3
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance		112.3	130.0
Interest income		12.3	15.4
Early settlement of obligations			(0.1)
Current service costs		0.2	0.2
Past service costs - changes in plan		2.9	0.1
Benefits paid directly by the Company		(1.1)	(5.5)
Actuarial (gains) losses		(5.1)	(38.1)
Actuarial losses (gains) - demographic hypothesis		(2.4)	(0.4)
Actuarial (gains) losses - economic hypothesis		13.7	10.6
Ending balance		132.8	112.3
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company		(1.1)	(5.5)
Ending balance		132.8	112.3
Costs recognized in statement of income [Roll Forward]
Interest income		(12.3)	(15.4)
Current service costs		(0.2)	(0.2)
Past service costs		(2.9)	(0.1)
Gains on early settlement			0.1
Cost recognizzed in statement of income		(15.4)	(15.6)
Medical plan [Member] | Plan assets [Member]
Composition of actuarial liabilities [Roll Forward]
Net liabilities
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance
Benefits paid directly by the Company		1.1	5.5
Ending balance
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company		1.1	5.5
Contributions of the sponsor		(1.1)	(5.5)
Ending balance
F.G.T.S. Penalty [Member]
Rollforward of comprehensive income [Roll Forward]
Beginning balance		64.8	89.8
Actuarial gains (losses)		(21.6)	(25.0)
Ending balance		(86.5)	64.8
Estimated costs for the next period [Roll Forward]
Current service costs		(6.5)	(6.0)
Interest on actuarial liabilities		(12.2)	(13.2)
Past service costs - changes in plan
Estimated costs for the next period		(18.8)	(19.2)
F.G.T.S. Penalty [Member] | Present value of defined benefit obligation [Member]
Composition of actuarial liabilities [Roll Forward]
Present value of actuarial liabilities				161.3	137.2
Net liabilities		161.3	137.2	161.3	137.2
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance		137.2	105.2
Interest income		13.2	10.7
Early settlement of obligations			(13.8)
Current service costs		6.0	4.3
Past service costs - changes in plan			13.8
Benefits paid directly by the Company		(16.6)	(7.9)
Actuarial (gains) losses		14.8	7.5
Actuarial losses (gains) - demographic hypothesis		(4.3)	13.8
Actuarial (gains) losses - economic hypothesis		11.1	3.7
Ending balance		161.3	137.2
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company		(16.6)	(7.9)
Ending balance		161.3	137.2
Costs recognized in statement of income [Roll Forward]
Interest income		(13.2)	(10.7)
Current service costs		(6.0)	(4.3)
Past service costs			(13.8)
Gains on early settlement			13.8
Cost recognizzed in statement of income		(19.1)	(15.0)
F.G.T.S. Penalty [Member] | Plan assets [Member]
Composition of actuarial liabilities [Roll Forward]
Net liabilities
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance
Benefits paid directly by the Company		16.6	7.9
Ending balance
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company		16.6	7.9
Contributions of the sponsor		(16.6)	(7.9)
Ending balance
Award for length of service [Member]
Rollforward of comprehensive income [Roll Forward]
Beginning balance		(38.0)	(22.7)
Actuarial gains (losses)		0.5	(15.3)
Ending balance		(37.5)	(38.0)
Estimated costs for the next period [Roll Forward]
Current service costs		(2.1)	(2.1)
Interest on actuarial liabilities		(4.0)	(5.1)
Past service costs - changes in plan
Estimated costs for the next period		(6.1)	(7.2)
Award for length of service [Member] | Present value of defined benefit obligation [Member]
Composition of actuarial liabilities [Roll Forward]
Present value of actuarial liabilities				49.3	52.0
Net liabilities		49.3	52.0	49.3	52.0
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance		52.0	41.4
Interest income		5.1	4.2
Early settlement of obligations			(4.3)
Current service costs		2.1	1.4
Past service costs - changes in plan			4.3
Benefits paid directly by the Company		(9.5)	(10.4)
Actuarial (gains) losses			7.3
Actuarial losses (gains) - demographic hypothesis		(1.8)	7.1
Actuarial (gains) losses - economic hypothesis		1.4	0.9
Ending balance		49.3	52.0
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company		(9.5)	(10.4)
Ending balance		49.3	52.0
Costs recognized in statement of income [Roll Forward]
Interest income		(5.1)	(4.2)
Current service costs		(2.1)	(1.4)
Past service costs			(4.3)
Gains on early settlement			4.3
Cost recognizzed in statement of income		(7.2)	(5.6)
Award for length of service [Member] | Plan assets [Member]
Composition of actuarial liabilities [Roll Forward]
Net liabilities
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance
Benefits paid directly by the Company		9.5	10.4
Ending balance
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company		9.5	10.4
Contributions of the sponsor		(9.5)	(10.4)
Ending balance
OtherMember
Rollforward of comprehensive income [Roll Forward]
Beginning balance	[1]	(12.9)	(6.9)
Actuarial gains (losses)	[1]	(3.0)	(6.0)
Ending balance	[1]	(16.0)	(12.9)
Estimated costs for the next period [Roll Forward]
Current service costs	[1]	(0.8)	(0.9)
Interest on actuarial liabilities	[1]	(2.5)	(2.9)
Past service costs - changes in plan	[1]
Estimated costs for the next period	[1]	(3.3)	(3.8)
OtherMember | Present value of defined benefit obligation [Member]
Composition of actuarial liabilities [Roll Forward]
Present value of actuarial liabilities	[1]			31.2	28.6
Net liabilities	[1]	31.2	28.6	31.2	28.6
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance	[1]	28.6	22.4
Interest income	[1]	2.9	2.4
Early settlement of obligations	[1]		(2.5)
Current service costs	[1]	0.9	0.6
Past service costs - changes in plan	[1]		2.5
Benefits paid directly by the Company	[1]	(4.1)	(2.9)
Actuarial (gains) losses	[1]	2.0	2.9
Actuarial losses (gains) - demographic hypothesis	[1]	(0.8)	2.2
Actuarial (gains) losses - economic hypothesis	[1]	1.7	0.9
Ending balance	[1]	31.2	28.6
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company	[1]	(4.1)	(2.9)
Ending balance	[1]	31.2	28.6
Costs recognized in statement of income [Roll Forward]
Interest income	[1]	(2.9)	(2.4)
Current service costs	[1]	(0.9)	(0.6)
Past service costs	[1]		(2.5)
Gains on early settlement	[1]		2.5
Cost recognizzed in statement of income	[1]	(3.7)	(3.0)
OtherMember | Plan assets [Member]
Composition of actuarial liabilities [Roll Forward]
Net liabilities	[1]
Rollforward of present value of actuarial liabilities [Roll Forward]
Beginning balance	[1]
Benefits paid directly by the Company	[1]	4.1	2.9
Ending balance	[1]
Rollforward of assets plan [Roll Forward]
Benefits paid directly by the Company	[1]	4.1	2.9
Contributions of the sponsor	[1]	(4.1)	(2.9)
Ending balance	[1]

[1] Considers the sums of the retirement compensation and life insurance benefits.

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 8) - Number	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Medical plan [Member]
Economic hypothesis
Discount rate	9.76%	11.22%
Inflation rate	4.25%	4.85%
Medical inflation	7.38%	8.00%
Wage growth rate
F.G.T.S. balance growth
Demoraphic data
Number of active participants	1,287	1,477
Number of assisted beneficiary participants	643	638
Medical plan [Member] | Schedule of mortality [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	AT-2000	AT-2000
Medical plan [Member] | Schedule of disabled [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	RRB-1944	RRB-1944
Medical plan [Member] | Schedule of disabled mortality [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	RRB-1983	RRB-1983
Medical plan [Member] | Schedule of turnover - BRF's historical [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	2017	2016
F.G.T.S. Penalty [Member]
Economic hypothesis
Discount rate	9.30%	11.64%
Inflation rate	4.25%	4.85%
Medical inflation
Wage growth rate	4.25%	5.80%
F.G.T.S. balance growth	4.00%	4.00%
Award for length of service [Member]
Economic hypothesis
Discount rate	9.30%	11.69%
Inflation rate	4.25%	4.85%
Medical inflation
Wage growth rate	4.25%	5.80%
F.G.T.S. balance growth
Life insurance [Member]
Demoraphic data
Number of active participants	89,596	90,861
Number of assisted beneficiary participants	2,097	2,863
Life insurance [Member] | Schedule of mortality [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	AT-2000	AT-2000
Life insurance [Member] | Schedule of disabled [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	RRB-1944	RRB-1944
Life insurance [Member] | Schedule of disabled mortality [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	RRB-1983	RRB-1983
Life insurance [Member] | Schedule of turnover - BRF's historical [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	2017	2016
OtherMember
Economic hypothesis
Discount rate	9.30%	11.64%
Inflation rate	4.25%	4.85%
Medical inflation
Wage growth rate	4.25%	5.80%
F.G.T.S. balance growth
Demoraphic data
Number of active participants	86,817	86,864
Number of assisted beneficiary participants
OtherMember | Schedule of mortality [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	AT-2000	AT-2000
OtherMember | Schedule of disabled [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	RRB-1944	RRB-1944
OtherMember | Schedule of disabled mortality [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	RRB-1983	RRB-1983
OtherMember | Schedule of turnover - BRF's historical [Member]
Demographic hypothesis
Schedule of mortality, disabled, disabled mortality, turnover - BRF's historical	2017	2016

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 9) R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$) Number
Disclosure of defined benefit plans [line items]
2017	R$ 76.6
2018	25.2
2019	30.2
2020	32.1
2021	31.5
2022 to 2026	R$ 164.7
Weighted average duration - in years | Number	7
Medical plan [Member]
Disclosure of defined benefit plans [line items]
2017	R$ 5.3
2018	5.8
2019	6.4
2020	7.0
2021	7.6
2022 to 2026	R$ 49.3
Weighted average duration - in years | Number	15
F.G.T.S. Penalty [Member]
Disclosure of defined benefit plans [line items]
2017	R$ 52.8
2018	11.4
2019	13.9
2020	15.9
2021	15.1
2022 to 2026	R$ 79.2
Weighted average duration - in years | Number	4
Award for length of service [Member]
Disclosure of defined benefit plans [line items]
2017	R$ 11.0
2018	5.4
2019	7.0
2020	6.5
2021	6.3
2022 to 2026	R$ 25.7
Weighted average duration - in years | Number	5
OtherMember
Disclosure of defined benefit plans [line items]
2017	R$ 7.5
2018	2.5
2019	3.0
2020	2.7
2021	2.5
2022 to 2026	R$ 10.5
Weighted average duration - in years | Number	6

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details 10) R$ in Millions	Dec. 31, 2017 BRL (R$)
Medical plan [Member] | Discount rate [Member]
Disclosure of defined benefit plans [line items]
Assumptions utilized	9.76%
Average (%)	10.76%
Actuarial liabilities	R$ (16.4)
Average (%)	8.76%
Actuarial liabilities	R$ 20.3
Medical plan [Member] | Medical inflation [Member]
Disclosure of defined benefit plans [line items]
Assumptions utilized	7.38%
Average (%)	8.38%
Actuarial liabilities	R$ 20.0
Average (%)	6.38%
Actuarial liabilities	R$ (16.4)
Medical plan [Member] | Turnover [Member]
Disclosure of defined benefit plans [line items]
Average (%)	300.00%
Actuarial liabilities	R$ (0.5)
Average (%)	(3.00%)
Actuarial liabilities	R$ 0.8
F.G.T.S. Penalty [Member] | Discount rate [Member]
Disclosure of defined benefit plans [line items]
Assumptions utilized	9.30%
Average (%)	10.30%
Actuarial liabilities	R$ (4.9)
Average (%)	8.30%
Actuarial liabilities	R$ 5.5
F.G.T.S. Penalty [Member] | Turnover [Member]
Disclosure of defined benefit plans [line items]
Average (%)	300.00%
Actuarial liabilities	R$ (16.7)
Average (%)	(3.00%)
Actuarial liabilities	R$ 22.8
F.G.T.S. Penalty [Member] | Wage growth rate [Member]
Disclosure of defined benefit plans [line items]
Assumptions utilized	4.25%
Average (%)	5.25%
Actuarial liabilities	R$ 0.8
Average (%)	3.25%
Actuarial liabilities	R$ (0.3)

XML

25. PENSION AND OTHER POST-EMPLOYMENT PLANS (Details Narrative) R$ in Millions	12 Months Ended
	Dec. 31, 2017 BRL (R$) Number	Dec. 31, 2016 BRL (R$) Number
FAF [Member]
Disclosure of defined benefit plans [line items]
Expected contribution plans 2017	R$ 0.4
Plan III [Member]
Disclosure of defined benefit plans [line items]
Defined contributions made by company	R$ 15.9	R$ 11.6
Number of participants under plan | Number	31,850	30,678
Plan III [Member] | Bottom of range [Member]
Disclosure of defined benefit plans [line items]
Percentage of basic contributions	0.70%
Plan III [Member] | Top of range [Member]
Disclosure of defined benefit plans [line items]
Percentage of basic contributions	7.00%

XML

26. PROVISION FOR TAX, CIVIL AND LABOR RISKS (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in other provisions
Beginning balance		R$ 1,383.9	R$ 1,205.9
Additions		1,056.1	749.3
Business combination	[1]	1.8	51.0
Reversals		(536.2)	(335.4)
Payments		(509.3)	(401.1)
Price index update		397.1	129.0
Exchange rate variation		(20.2)	(14.8)
Ending balance		1,773.2	1,383.9
Current		536.1	276.2
Non-current		1,237.1	1,107.7
Tax [Member]
Reconciliation of changes in other provisions
Beginning balance		281.7	240.5
Additions		177.1	107.2
Business combination	[1]		28.7
Reversals		(50.8)	(48.0)
Payments		(127.0)	(69.4)
Price index update		26.6	26.5
Exchange rate variation		(4.2)	(3.8)
Ending balance		303.4	281.7
Labor [Member]
Reconciliation of changes in other provisions
Beginning balance			377.0
Additions		704.0	559.5
Business combination	[1]	1.8	17.8
Reversals		(270.8)	(254.3)
Payments		(338.9)	(282.0)
Price index update		128.5	70.0
Exchange rate variation		(12.6)	(8.3)
Civil, commercial and other [Member]
Reconciliation of changes in other provisions
Beginning balance		122.5	65.7
Additions		164.1	82.6
Business combination	[1]		4.5
Reversals		(75.1)	(12.2)
Payments		(43.3)	(49.7)
Price index update		242.0	32.5
Exchange rate variation		(2.7)	(0.9)
Ending balance		407.5	122.5
Contingent liabilities [Member]
Reconciliation of changes in other provisions
Beginning balance		499.9	522.6
Additions		11.0
Business combination	[1]
Reversals		(139.5)	(20.9)
Payments
Price index update
Exchange rate variation		(0.8)	(1.8)
Ending balance		R$ 370.6	R$ 499.9

[1] Balance arising from the business combination with Banvit (note 6.1.3).

XML

26. PROVISION FOR TAX, CIVIL AND LABOR RISKS (Details Narrative) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 14, 2015
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts	R$ 1,773.2	R$ 1,383.9	R$ 1,205.9
Huaine Participacoes Ltda [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	670.9	642.8
Tax Contingent Liability [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	11,469.9	11,953.1
Tax Contingent Liability For Profits Earned Abroad [Member] | Brazilian Internal Revenue Service [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	506.3	688.6
Tax Contingent Liability For Social Security Taxes [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	262.9	237.2
Tax Contingent Liability For Other Contingencies [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	190.0	29.7
Sadia, Avex &Danica Group [Member] | Tax Contingent Liability [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	370.2	490.3
State ICMS ("VAT") [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Reversal of undue tax credits		332.2		R$ 339.6
Maintenance of ICMS tax credits	789.9	716.2
Balance of export for tax credits	333.8	356.8
State ICMS ("VAT") [Member] | Tax Contingent Liability For Undue ICMS Tax Credits [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Undue tax credits	1,690.6	2,153.5
State ICMS ("VAT") [Member] | Other Claims [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	1,946.2	1,763.2
PIS and COFINS ("Federal Taxes to Social Fund Programs") [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	4,001.2	3,614.9
IPI ("Federal VAT") [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	441.7	459.2
IPI ("Federal VAT") [Member] | Tax Contingent Liability For Premium Credits [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts		440.1
Tax [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts	303.4	281.7	240.5
Tax [Member] | State ICMS ("VAT") [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts	157.0	129.1
Tax [Member] | PIS and COFINS ("Federal Taxes to Social Fund Programs") [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts	106.5	102.0
Tax [Member] | Other [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts	51.6	105.4
Contingent liabilities [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	13,278.4	13,667.9
Contingent liabilities [Member] | Tax Contingent Liability For Income Tax and Social Contribution [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	1,276.4	1,160.2
Contingent liabilities [Member] | Sadia, Avex &Danica Group [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	370.6	499.9
Labor [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts			377.0
Possible contingencies amounts	139.3	34.9
Civil, commercial and other [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Provision amounts	407.5	122.5	R$ 65.7
Civil, commercial and other [Member] | Indemnification For Material & Moral Damages [Member]
ProvisionForTaxCivilAndLaborRisksLineItems [Line Items]
Possible contingencies amounts	R$ 1,714.9	R$ 1,679.8

XML

27. SHAREHOLDERS' EQUITY (Details) - shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ShareholdersEquityLineItems [Line Items]
Outstanding shares	811,139,545	799,005,245	809,972,245	867,284,349
Paid-in capital [Member]
ShareholdersEquityLineItems [Line Items]
Outstanding shares	812,473,246	812,473,246	872,473,246
Treasury Shares [Member]
ShareholdersEquityLineItems [Line Items]
Outstanding shares	(1,333,701)	(13,468,001)	(62,501,001)

XML

27. SHAREHOLDERS' EQUITY (Details 1) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shareholders Equity Details 1
Shares at the beginning of the period	799,005,245	809,972,245	867,284,349
Purchase of treasury shares			59,247,400
Sale of treasury shares	(12,134,300)	12,134,300	1,935,296
Shares at the end of the period	811,139,545	799,005,245	809,972,245

XML

27. SHAREHOLDERS' EQUITY (Details 2) - BRL (R$) R$ / shares in Units, R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shareholders Equity Details 2
Net profit (Loss)	R$ (1,125.6)	R$ (372.4)	R$ 2,928.1
Legal reserve (5.00%)			(155.6)
Dividends calculation base	(1,125.6)	(372.4)	2,955.6
Minimum mandatory dividend (25.00%)			738.9
Remuneration of shareholders' exceeding the mandatory minimum		513.2	251.8
Total remuneration of shareholders' in the year, as interest on shareholders' equity and dividends (R$91,443 in 2015)		513.2	990.7
Withholding income tax on interest on shareholders' equity			(48.3)
Remuneration of shareholders', net of withholding income tax		R$ 436.2	R$ 901.8
Percentage of calculation base			33.52%
Earnings paid per share		R$ 0.7641	R$ 1.19979
Payment of interest on shareholders' equity, paid in the year - gross of withholding income tax of R$76,982 in 2016 (R$40,453 in 2015)		R$ (513.2)	R$ (425.9)
Paid in the previous period - interest on shareholders' equity - gross withholding income tax of R$48,318 in 2015 (R$33,934 in 2014)		(473.4)	(376.7)
Paid in the previous period - Dividends		(189.7)	(86.5)
Payments maid during in the year		(1,176.3)	(889.1)
Total remuneration of shareholders' outstanding			564.8
Total withholding income tax on interest on shareholders' equity			(48.3)
Remaining amounts outstanding	1.9	2.3	1.9
Interest on shareholders' equity outstanding	R$ 1.9	R$ 2.3	518.5
Legal reserve percenatge		5.00%
Minimum mandatory dividend percenatge		25.00%
Interest on remuneration of shareholders'			91,443.0
Withholding income tax of interest on shareholders' equity		R$ 76,982.0	4,000,453.0
Withholding income tax of previous period - interest on shareholders' equity			R$ 48,318.0

XML

27. SHAREHOLDERS' EQUITY (Details 3) - BRL (R$) R$ in Millions				12 Months Ended
	Jun. 30, 2016	Feb. 12, 2016	Dec. 17, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ShareholdersEquityLineItems [Line Items]
Dividends			R$ 91.4		R$ (98.2)	R$ (91.4)
Interest on shareholdes' equity	R$ 513.2	R$ 438.8
Legal reserve						(155.6)
Capital increase reserve				R$ 115.1	41.0	R$ 7.0
Limit on capital, Legal reserve				20.00%
Limit on capital, Capital increase reserve				20.00%
Income Appropriation [Member]
ShareholdersEquityLineItems [Line Items]
Actuarial loss FAF				R$ (16.8)	(19.1)
Interest on shareholdes' equity					513.2
Legal reserve				(438.8)
Capital increase reserve				(30.3)	(989.1)
Reserve for tax incentives				(639.7)	122.6
Profit distribution/Loss absorption				(1,125.6)	(372.4)
Reserve Balances [Member]
ShareholdersEquityLineItems [Line Items]
Actuarial loss FAF
Interest on shareholdes' equity
Legal reserve				101.4	540.2
Capital increase reserve					170.8
Profit distribution/Loss absorption				R$ 101.4	R$ 1,350.7

XML

27. SHAREHOLDERS' EQUITY (Details 4) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ShareholdersEquityLineItems [Line Items]
Capital reserve	R$ 115.1	R$ 41.0	R$ 7.0
Capital Reserve [Member]
ShareholdersEquityLineItems [Line Items]
Result on disposal of shares	(40.7)	(40.7)	(39.0)
Granted shares canceled	(32.4)	(32.4)
Valuation of stock exchange	166.2	166.2	174.0
Shares based payment	261.8	236.2	160.3
Goodwill on acquisition of non-controlling interest	(40.5)	(47.4)	(47.4)
Acquisition of non-controlling entities	(199.3)	(240.9)	(240.9)
Capital reserve	R$ 115.1	R$ 41.0	R$ 7.0

XML

27. SHAREHOLDERS' EQUITY (Details 5) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shareholders Equity Details 5
Shares at the beginning of the period	13,468,001	62,501,001
Cancellation of treasury shares		(60,000,000)
Purchase of treasury shares			(59,247,400)
Sale of treasury shares	12,134,300	(12,134,300)	(1,935,296)
Shares at the end of the period	1,333,701	13,468,001	62,501,001

XML

27. SHAREHOLDERS' EQUITY (Details 6) - shares	Dec. 31, 2017	Dec. 31, 2016
ShareholdersEquityLineItems [Line Items]
Quantity	812,473,246	812,473,246
%	100.00%	100.00%
Treasury Shares [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	1,333,701	13,468,001
%	0.16%	1.66%
Fundacao Petrobras de Seguridade Social - Petros [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	92,716,266	92,761,499
%	11.41%	11.42%
Caixa de Previd. dos Func. Do Banco do Brasil [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	86,605,452	86,628,752
%	10.66%	10.66%
Tarpon [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	59,014,607	95,984,835
%	7.26%	11.81%
Aberdeen [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	40,748,226	36,580,714
%	5.02%	4.50%
Board of Directors [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	41,220,470	37,348,439
%	5.07%	4.60%
Executives [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	157,546	50,252
%	0.02%	0.01%
Other [Member]
ShareholdersEquityLineItems [Line Items]
Quantity	490,676,978	449,650,754
%	60.40%	55.34%

XML

27. SHAREHOLDERS' EQUITY (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions						12 Months Ended
	Jun. 30, 2016	Feb. 26, 2016	Feb. 25, 2016	Feb. 12, 2016	Dec. 17, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ShareholdersEquityLineItems [Line Items]
Capital subscribed and paid						R$ 12,553.4
Number of shares issued						812,473,246
Public offering expenses, net						R$ 92.9
Cancellation of shares			60,000,000
Number of shares authorised						1,000,000,000
Interest on shareholdes' equity	R$ 513.2			R$ 438.8
Dividends					R$ 91.4		R$ (98.2)	R$ (91.4)
Dividend payables			R$ 98.2
Number of treasury shares						1,333,701
Par value per share (in dollars per share)						R$ 53.60
Market value of treasury shares						R$ 48.8
Shares repurchased		20,000,000
Number of sold treasury shares						140,600
Treasury Shares [Member]
ShareholdersEquityLineItems [Line Items]
Dividends
Shares repurchased						12,134,300
Shares repurchased, value						R$ 509.9

XML

28. EARNINGS PER SHARE (Details) - BRL (R$) R$ / shares in Units, R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic numerator
Net (loss) profit for the year attributable to shareholders	R$ (1,125.6)	R$ (372.4)	R$ 3,130.8
Basic denominator
Common shares	812,473,246	812,473,246	872,473,246
Weighted average number of outstanding shares - basic (except treasury shares)	803,559,763	801,903,266	842,000,012
Net (loss) earnings per share basic - R$	R$ (1.36748)	R$ (0.45808)	R$ 3.71836
Diluted numerator
Net (loss) profit for the period attributable to controlling shareholders	R$ (1,125.6)	R$ (372.4)	R$ 3,130.8
Diluted denominator
Weighted average number of outstanding shares - basic (except treasury shares)	803,559,763	801,903,266	842,000,012
Number of potential shares (stock options)			401,809
Weighted average number of outstanding shares - diluted	803,559,763	801,903,266	842,401,821
Net (loss) earnings per share diluted - R$	R$ (1.36748)	R$ (0.45808)	R$ 3.71659

XML

29. GOVERNMENT GRANTS (Details Narrative) - BRL (R$) R$ in Millions	Dec. 31, 2017	Dec. 31, 2016
Government Grants Details Narrative
Government grants	R$ 144.4	R$ 122.6

XML

30. RELATED PARTIES (Details) - BRL (R$)
R$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Corall Consultoria LTDA [Member] | Mr. Artur Paranhos Tacla [Member]

Disclosure of transactions between related parties [line items]

Type of transations

Corall provided consulting services to BRF

Corall provided consulting services to BRF

Corall provided consulting services to BRF

Amounts of revenues (expenses)

R$ (1.8)

Edavila Consultoria Empresarial Eireli [Member] | Mr. Luiz Fernando Furlan, Walter Fontana Filho and Jose Carlos Reis de Magalhaes Neto [Member]

Disclosure of transactions between related parties [line items]

Type of transations

Edavila provided consulting services to BRF

Edavila provided consulting services to BRF

Edavila provided consulting services to BRF

Amounts of revenues (expenses)

R$ (0.5)

R$ (0.3)

Hortigil Hortifruti S.A. (Hortigil) [Member] | Mr. Manoel Cordeiro Silva Filho [Member]

Disclosure of transactions between related parties [line items]

Type of transations

BRF sells products to Hortigil

BRF sells products to Hortigil

BRF sells products to Hortigil

Amounts of revenues (expenses)

R$ 3.5

R$ 15.3

Instituto de Desenvolvimento Gerencial S.A. [Member] | Mr. Vicente Falconi Campos [Member]

Disclosure of transactions between related parties [line items]

Type of transations

Instituto provided consulting services to BRF

Instituto provided consulting services to BRF

Instituto provided consulting services to BRF

Amounts of revenues (expenses)

R$ (0.9)

R$ (5.0)

R$ (11.3)

XML

31. RELATED PARTIES (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of transactions between related parties [line items]
Rental expense	R$ 15.8	R$ 14.4
Management remuneration - non-statutory	23.0	16.0	R$ 7.6
Instituto Sadia de Sustentabilidade [Member]
Disclosure of transactions between related parties [line items]
Liability related to the fair value of the guarantees	3.7	6.2
Amounts payable	R$ 13.6	22.2
Other liabilities		R$ 30.6

XML

31. RELATED PARTIES (Details 1) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Related Parties Details 1
Salary and profit sharing	R$ 32.8	R$ 27.5
Short term benefits (1)	0.4	0.3
Pension plan	0.6	0.8
Post-employment benefits	0.2	0.2
Termination benefits	5.8	5.9
Share based payment	17.0	16.8
Total remuneration and benefits paid to professionals	R$ 56.8	R$ 51.5

XML

32. RESEARCH AND DEVELOPMENT COSTS (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Research And Development Costs Details Narrative
Research and development costs	R$ 52.0	R$ 200.2	R$ 227.3

XML

33. OTHER OPERATING INCOME (EXPENSES), NET (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income
Tax amnesty program ("PERT")		R$ 147.7
Recovery of expenses	[1]	120.6	101.3	241.1
Scrap sales		14.5	14.4	12.3
Provision reversal		13.4	56.1	141.7
Gain on step business combination			59.6
Gain on disposals of property, plant and equipment			38.4
Other		69.3	30.5	45.8
Income		365.4	300.3	566.6
Expenses
Provision for civil, labor and tax risks		(332.9)	(136.9)	(44.8)
Provision for adjustment to realizable value of inventories (effect Weak Flesh Operation) (2)	[2]	(283.1)
Expenses arising from Weak Flesh Operation (2)	[2]	(80.3)
Rewards and short-term incentive		(111.3)	(11.1)	(302.8)
Disabled operations (3)	[3]	(81.4)	(106.2)	(86.1)
Business combination costs		(51.9)
Discontinued operations		(44.7)	(17.4)
Other employees benefits		(43.7)	(41.1)	(52.5)
Costs on business disposals		(36.7)
Stock options plan		(25.6)	(43.5)	(58.9)
Insurance claims costs		(24.3)	(33.1)	(15.1)
Loss on disposals of property, plant and equipment		(17.1)		(16.4)
Allowance for doubtful accounts		(13.6)	(5.5)	(196.7)
Other		(107.0)	(103.1)	(120.0)
Expenses		(1,253.6)	(497.8)	(1,011.3)
OTHER OPERATING INCOME (EXPENSES), NET		R$ (888.2)	R$ (197.5)	R$ (444.7)

[1] The accumulated balance in 2017 refers mainly to extemporaneous tax credits in the amount of R$91.9.

[2] Expenses arising from Weak Flesh Operation (note 1.5).

[3] Disable operations includes depreciation charge of R$41.4 (R$29.4 in 2016 and R$18.3 in 2015).

XML

33. OTHER OPERATING INCOME (EXPENSES), NET (Details Narrative) - BRL (R$) R$ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Operating Income Expenses Net Details Narrative
Depreciation charge of idleness cost	R$ 41.4	R$ 29.4	R$ 18.3

XML

34. FINANCIAL INCOME (EXPENSES), NET (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financial income
Exchange rate variation on other liabilities		R$ 361.9
Interest on assets		305.5	318.1	235.0
Tax amnesty program ("PERT")		147.7
Interest on cash and cash equivalents		272.8	217.5	164.2
Exchange rate variation on net assets of foreign subsidiaries (1)	[1]	213.5
Interests on financial assets classified as
Held to maturity		61.7	84.8	55.1
Held for trading		19.8	43.6	47.4
Available for sale		8.2		16.6
Exchange rate variation on marketable securities			56.2	381.3
Exchange rate variation on other assets			338.7	1,081.0
Gains from derivative transactions, net				14.8
Exchange rate variation on loans and financing			1,314.8
Exchange rate variation on net foreign assets				1,353.5
Other				6.4
Financial income		1,545.6	2,373.7	3,355.3
Financial expenses
Interest on loans and financing		(1,480.5)	(1,208.9)	(819.2)
Exchange rate variation on other assets		(574.9)
Interest on liabilities		(500.0)	(279.8)	(165.4)
Adjustment to present value		(302.5)	(353.6)	(240.1)
Exchange rate variation on loans and financing		(211.7)		(2,085.8)
Losses on derivative transactions, net		(114.4)	(1,092.2)
Exchange rate variation on marketable securities		(94.6)
Financial expenses on accounts payable		(22.4)	(76.4)	(45.5)
Exchange rate variation on other liabilities			(565.9)	(1,080.5)
Exchange rate variation on net foreign assets			(660.5)
Premium paid for the repurchase of bonds (Tender Offer)			(31.8)	(310.3)
Other		(326.3)	(237.3)	(278.7)
Financial expenses		3,627.3	4,506.4	5,025.5
Financial income (expenses)		R$ (2,081.6)	R$ (2,132.7)	R$ (1,670.2)

[1] Refers to gains and losses on translation of assets and liabilities reported by the Company's subsidiaries whose functional currency is Real.

XML

35. STATEMENT OF INCOME BY NATURE (Details) - BRL (R$) R$ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Costs of sales
Costs of goods		R$ 18,716.5	R$ 18,994.0	R$ 15,339.0
Depreciation		1,469.8	1,290.5	1,080.9
Amortization		91.9	6.0	4.5
Salaries and employees benefits		4,004.6	3,716.3	3,394.4
Others		2,282.5	2,199.6	2,288.9
Costs of sales		26,565.3	26,206.4	22,107.7
Sales expenses
Depreciation		65.5	64.7	55.3
Amortization		69.7	14.7	12.9
Salaries and employees benefits		1,291.2	1,200.0	1,081.8
Indirect and direct logistics expenses		2,188.8	2,124.9	2,211.0
Others		1,114.9	1,561.4	1,444.9
Sales expenses		4,730.1	4,965.7	4,805.9
Administrative expenses
Depreciation		41.2	24.5	20.0
Amortization		138.7	173.0	124.7
Salaries and employees benefits		269.1	265.8	301.3
Fees		31.0	28.6	26.2
Others		92.0	85.5	33.9
Administrative expenses		572.0	577.4	506.1
Other operating expenses (1)
Depreciation	[1]	41.4	29.4	18.3
Others	[1]	1,212.2	468.4	993.0
Other operating expenses (1)	[1]	R$ 1,253.6	R$ 497.8	R$ 1,011.3

[1] The composition of other operating expenses is disclosed in note 33.

XML

36. INSURANCE COVERAGE (Details)
R$ in Millions

12 Months Ended

Dec. 31, 2017

BRL (R$)

Operational risks [Member]

Disclosure of types of insurance contracts [line items]

Coverage

Coverage against damage to buildings, facilities, inventory, machinery and equipment, loss of profits

Amount of coverage

R$ 893.2

Carriage of goods [Member]

Disclosure of types of insurance contracts [line items]

Coverage

Coverage of goods in transit and in inventories

Amount of coverage

R$ 932.0

Civil responsibility [Member]

Disclosure of types of insurance contracts [line items]

Coverage

Third party complaints

Amount of coverage

R$ 264.6