Brazilian meat company BRF has announced a significant investment, allocating around $160 million for a new factory in Jeddah, Saudi Arabia.
According to a recent statement from BRF, this investment will occur through BRF Arabia Holding Company, a joint venture with the Halal Products Development Company (HPDC).
This joint venture was first announced in 2022. BRF commands a 70% stake, while HPDC, a wholly-owned subsidiary of the Kingdom’s Public Investment Fund (PIF), retains the remaining 30%.
Marcos Molina, controlling shareholder and chairman of the boards of directors at BRF and Marfrig, emphasized that this deal “strengthens our operations in a highly strategic market” and “consolidates our partnership with the Kingdom of Saudi Arabia in its food safety agenda.”
Marfrig currently holds a majority share in BRF. This increase in their holding occurred after Marfrig’s initial investment in 2021.
The forthcoming BRF factory is projected to produce approximately 40,000 tons per year of processed poultry and beef products, elevating the company’s local production capacity from 17,000 to 57,000 tons annually.
Targeted to commence operations by mid-2026, the Jeddah facility is designed to accommodate future scalability, with potential to double its production capacity over time.
This new factory will mark BRF’s third production facility in Saudi Arabia and its seventh across the Middle East.
As part of this investment, BRF plans to allocate $63 million in 2025 and an additional $98 million in 2026.
HPDC CEO Fahad Alnuhait commented, “This new facility represents a major step forward in our strategy to build integrated halal manufacturing ecosystems. In partnership with BRF, this investment reflects our continued efforts to advance Saudi Arabia’s position in the global halal economy.”
This announcement follows BRF Arabia’s entry into halal chicken production in Saudi Arabia, marked by the acquisition of a 26% stake in Addoha Poultry Company.
BRF currently exports to over 14 countries within the region and operates a processed food factory in Dammam.
In its 2024 financial report, BRF announced net sales of 61.37 billion reais ($1.06 billion), reflecting a robust 14% increase from 2023.
Furthermore, the company reported a net income of 3.69 billion reais, a substantial turnaround from a loss of 1.87 billion reais in 2023.
Operating income saw an impressive rise to 6.77 billion reais, significantly exceeding the 589 million reais recorded in 2023.
