October 26, 2022

Saudi Arabian, BRF to set up joint venture which will localise production of halal poultry products

Saudi Arabia's Halal Products Development Company (HPDC) and poultry exporter BRF have signed an agreement to establish a joint venture company in the country.

The joint venture would be mandated to increase production capacity along the poultry sector value chain and contribute to localising manufacturing capabilities of halal products. It will establish operations for the whole poultry production chain in Saudi Arabia and bolster local competition.

Additionally, the joint venture will contribute to meeting Saudi Arabia's target of 80% poultry self-sufficiency by 2025, reducing reliance on imports and localising technology and knowledge within the kingdom, a statement said.

Saudi Arabia's sovereign wealth fund, Public Investment Fund, announced the launch of HPDC, which will invest in localising the country's halal production industry.

The joint venture is in line with the sovereign wealth fund's strategy, which focuses on developing and enabling the capabilities of 13 key sectors and sub-sectors, including the consumer goods and retail/food and agriculture sectors and achieving a sustainable domestic food production system.

- Gulf Business