June 1, 2023

Saudi Arabia invests in BRF SA, Brazil's largest poultry producer

Saudi Arabia continues its rapid expansion into the global food industry through a significant agreement to acquire shares of BRF SA, Brazil's largest poultry producer, Gulf News reported.

Under the deal, state-owned Saudi Agricultural and Livestock Investment Co., also known as Salic, and Brazil's Marfrig Global Foods SA have agreed to purchase up to US$890 million worth of new BRF shares. This transaction will provide Salic with a stake ranging between 10% and 15% in the company.

Leandro Fontanesi, an analyst at Bradesco BBI, said that Saudi Arabia has been a major importer of chicken from BRF in recent years, accounting for approximately 7% of the company's total sales.

Having heavily relied on food imports, Saudi Arabia has actively pursued agricultural investments in recent years. In 2015, Salic acquired a majority stake in the former Canadian Wheat Board, marking the beginning of the kingdom's agricultural deal spree.

The country has intensified its focus on agriculture in the aftermath of the pandemic and disruptions in global trade caused by Russia's attack on Ukraine, which has led to soaring food prices and exposed vulnerabilities in the world's supply chains.

-      Gulf News