BRF formalizes halal joint venture in Saudi Arabia
The intention to set up the joint venture had been communicated in October 2022. BRF's stake in the new company will be 70% and HPDC will have 30%, the Brazilian firm said.
The joint venture's announcement underscores BRF's push to move from a purely exporter role to a local supplier of meat products in the country.
Saudi Arabia imported an annual average of 564,476 metric tons of Brazilian chicken products in the decade ended in 2022, according to data compiled by the Arab-Brazil Chamber of Commerce. Last year, however, it bought a smaller 340,000 metric tons, ranking fourth among Brazil's top chicken destinations behind the United Arab Emirates, Japan and China.
BRF said the main goal of the joint venture will be developing the halal meat industry in the region, referring to food that must be produced according to Muslim dietary requirements.
The joint venture's formalization comes days after SALIC, a wholly owned subsidiary of PIF, acquired a 10.7% stake in BRF through a follow-on share offering as part of Saudi Arabia's long-term goal to secure food security for the Kingdom.
BRF has sold products in the Middle East for over 50 years. Starting in 2009, it set up its own distribution network in Saudi Arabia, where it also acquired a food processing unit three years ago.
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