BRF to invest circa $160m in Saudi Arabia meat plant
In a statement, BRF said the investment will be made through BRF Arabia Holding Company, a joint venture between the meat giant and the Halal Products Development Company (HPDC).
The JV was announced in 2022, with BRF holding a 70% stake and HPDC, a wholly-owned subsidiary of the Kingdom's sovereign wealth fund, the Public Investment Fund (PIF), owning the remaining 30%.
Marcos Molina, controlling shareholder and chairman of the boards of directors at BRF and fellow Brazil meat business Marfrig, said the deal 'strengthens our operations in a highly strategic market' and 'consolidates our partnership with the Kingdom of Saudi Arabia in its food safety agenda'.
Marfrig holds a majority share in BRF after increasing its holding in its local peer last year having first invested in the business in 2021.
The new BRF factory is expected to produce approximately 40,000t per year of processed poultry- and beef-based products, boosting the company's local production from 17,000t to 57,000t annually, it said in a separate statement.
Scheduled to commence operations by mid-2026, the Jeddah facility is designed with future scalability in mind, potentially doubling its production capacity over time.
It will become BRF's third production unit in Saudi Arabia and its seventh in the Middle East.
BRF, which owns the Sadia, Perdigão and Qualy brands, plans to allocate $63m towards the investment in 2025, followed by $98m in 2026.
HPDC CEO Fahad Alnuhait said: 'This new facility represents a major step forward in our strategy to build integrated halal manufacturing ecosystems. In partnership with BRF, this investment reflects our continued efforts to advance Saudi Arabia's position in the global halal economy.'
The announcement follows BRF Arabia's entry into halal chicken production in Saudi Arabia, acquiring 26% of Addoha Poultry Company.
BRF exports to over 14 countries in the region and operates a processed food factory in Dammam.
In 2024, BRF reported net sales of 61.37bn reais ($1.06bn), an increase of 14% compared to 2023.
The company posted net income of 3.69bn reais versus a loss of 1.87bn reais in 2023.
Operating income rose to 6.77bn reais, more than 11 times higher than the 589m reais recorded in 2023.
"BRF to invest circa $160m in Saudi Arabia meat plant " was originally created and published by Just Food, a GlobalData owned brand.
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