Logos of SALIC and BRF
Saudi Agricultural and Livestock Investment Co. (SALIC), owned by the Public Investment Fund, announced today, July 19, acquiring 180 million shares, or a 10.7% stake, of Brazilian firm, BRF SA, for SAR 1.27 billion.
The move reflects SALIC’s ongoing expansion to achieve its global and local food security strategic mandates, which stems from the Vision 2030 to support long-term national development and sustain the supply of the targeted essential food commodities.
Through global alliances and partnerships, SALIC aims to access the source origin of these strategic commodities and leverage the competitive advantages of these investments. Poultry is a key commodity in the Kingdom considering the rapid population growth and relatively high local consumption rate of this commodity which averaged 43 kilograms per capita annually, along with the country’s target to continue increasing the self-sufficiency rate of poultry, SALIC added.
The investment in BRF also anchors one of its key strategic pillars pertaining to the enablement of the Saudi agricultural sector by addressing the current challenges across the value chain, leveraging leading international expertise to advance local operational efficiencies in line with the national agriculture strategy.
Further, SALIC affirmed that the investment in poultry further expands its collaboration with global players to gain access to the source origin of animal protein and delivers on its food security mandate in this segment on both local and international levels.
This strategic journey started in the year 2016 with a strategic and unique partnership with Brazil’s Minerva Foods followed by the recent acquisition of 42.4% of National Aquaculture Group (NAQUA), a globally leading player in aquaculture.
BRF commenced operations 85 years ago. It is the world’s third-largest poultry producer, the 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 employees in 130 countries.
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