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Riyadh: The Saudi Agricultural and Livestock Investment Company (SALIC), fully owned by the Public Investment Fund, announced today that it has acquired 180 million equity shares of the Brazilian company BRF, a global leader in the poultry sector, representing 10.7% of the company's outstanding shares, at a value of SAR1.27 billion.
SALIC said that this investment is another step on its ongoing expansion drive, whose goal is to help it achieve global and local food security, and that it stems from the Kingdom's 2030 vision, part of which is support for long-term national development and sustainable supply of essential food commodities.
Through global alliances and partnerships, SALIC aims to access the source of strategic commodities and leverage the competitive advantages of such investments.
According to SALIC, poultry is a key commodity in the Kingdom, particularly in view of the rapid population growth and the relatively high consumption, which averages 43 kg per capita annually, and the country's target is to continue increasing poultry self-sufficiency.
SALIC added that the investment in BRF bolsters one of the company's key strategic pillars, which is enabling local agri-food sector by tackling current challenges across the value chain benefiting from leading international expertise to advance local operational efficiency and reduce supply and price fluctuations in the local market, which aligns with the National Agriculture Strategy.
Furthermore, SALIC said that investment in the poultry sector contributes to further expanding its collaboration with global players to gain access to the source of animal protein, and helps it deliver on its food security mandate.
SALIC's strategic journey started in 2016 with an important, and unique, partnership with "Minerva Foods", a Brazilian company and one of the leading global producers of red meat; it was followed by the recent acquisition of 42.4% of Naqua, a globally leading player in aquaculture.
BRF, which started its operations 85 years ago, is the world's third-largest poultry producer, second-largest halal products company globally, and Brazil's leading brand for poultry products. It has an annual production capacity of over five million tons of diversified products and a workforce of 90,000 in 130 countries.