RIYADH: The Kingdom is all set to make a mark in the global food industry space with Saudi Agricultural and Livestock Investment Co., or SALIC, acquiring 180 million shares of BRF, Brazil’s largest poultry producer.
According to the Saudi Press Agency, the Public Investment Fund-owned company acquired a 10.7 percent stake in BRF for SR1.27 billion ($340 million), demonstrating its commitment to the food security of the Kingdom.
The SPA report stated that this investment is part of the company’s plans to widen its footprint globally and locally. It also emanates from the Saudi Vision 2030 to support long-term national development to ensure the sustainability of targeted basic food commodities.
As poultry is one of the essential commodities in the Saudi market, SALIC sought to access the strategic food supply directly using its network of global investments and partnerships.
However, Saudi Arabia has been planning to raise the percentage of its annual self-sufficiency in poultry, compared to the current rate, estimated at 43 kilograms per capita.
The food company added that its investment in the BRF will also support its strategic directions to empower the local agri-food sector by bridging gaps along the value chain and benefiting from global expertise to raise the efficiency of local production.
SALIC stressed that the investment in the poultry sector is an extension of its assets in major international companies to access animal protein sources to achieve food security goals in this sector at the local and global levels.
The company added that it began a strategic investment and a qualitative partnership in 2016 with the Brazilian company Minerva Foods, one of the largest international companies in red meat, in addition to its acquisition of a 42.4 percent stake in the Saudi company Naqua, the world leader in aquaculture.
BRF started its business 85 years ago and is the world’s third-largest poultry producer and the second-largest company in selling halal products worldwide. It is also the No. 1 brand of poultry products in Brazil, with an annual production capacity of over five million tons and over 90,000 workers in 130 countries.
