Brazilian food company BRF said on Thursday that it has signed a Memorandum of Understanding with the Saudi Public Investment Fund to form a joint venture venture in the poultry market in the Kingdom.
BRF added that it will hold a 70% stake in the project, while the Saudi Fund will own the rest.
In a statement to the stock exchange, the company said the deal includes an investment of approximately $ 350 million.
Shares in the company were up 3.2% to 24.60 Brazilian riyals following the announcement of the signing of the memorandum.
The memorandum of understanding is not binding and aims to establish a company for the production and sale of fresh, frozen and processed poultry products.
This step confirms BRF’s strategy to maintain an important share of the so-called halal food market, in which foods are prepared according to Islamic regulations.
Brazil is the world’s largest supplier of halal meat and supplies chicken and meat to lucrative Muslim markets around the world.
And Saudi Arabia is the fourth largest consumer of Brazilian chicken, as trade data from the Meat Industry Group (ABPA), which represents major producers and exporters in Brazil, indicate that the Kingdom imported 353,500 tons in 2021.
However, this amount decreased by 24.4% compared to the previous year’s counterpart, as the Saudis are looking to reduce imports and increase local production of chicken products.
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