October 7, 2010

Saudi agribusiness firm eyes Brazilian poultry and grain market

A Saudi agricultural investment company is looking to invest up to US$500 million in poultry and grain enterprises in Brazil with the view to exporting the products to the Middle East.

Representatives of Saudi group Agro invest, a public-private agricultural investment company, are now in Brazil seeking partnerships for producing and exporting grain and poultry, according to reports.

The group's capital for investing abroad is US$500 million.

Agro invest, also known as the International Agriculture and Food Investment Company, was established last year as part of a Saudi government project to ensure food security and help stabilise prices on the local market, according to reports.

According to Mohamed Abdullah Al-Rasheed, the president of Saudi Greenhouses, one of the companies in the Agro invest group, activities should begin in 2011, and for such, we must get to know the agricultural opportunities that Brazil has to offer.

Aside from Brazil, the group's companies are eyeing African, Asian and European countries.

Agro invest's main fields of interest are poultry, wheat, corn and soy. The group intends to establish several production-orientated partnerships both in Brazil and the Arab country.

As negotiations move forward, Rasheed claimed that the second step is sending a technical team to Brazil to assess the conditions for production and exporting.

Reports state that the Saudi businessman met this week with Brazilian companies in a meeting organised by the Ministry of Agriculture, Livestock and Supply.