Brazil and Saudi Arabia establish billion-dollar partnership to boost Brazil’s agricultural industry

Last Saturday, led by Agriculture Minister Carlos Fávaro, a delegation from Brazil’s Ministry of Agriculture and Livestock arrived in Saudi Arabia after a mission in Japan.

The following day, Fávaro met with Saudi Minister of Environment, Water and Agriculture, Abdulrahman Abdulmohsen A. AlFadley, in Riyadh.

The ministers emphasized the complementary aspects between Brazil and Saudi Arabia, suggesting a working group to form a joint partnership in the agricultural sector.

They discussed a sustainable food production program led by Brazil’s Ministry of Agriculture and Livestock, aiming to double the country’s food production area without deforestation.

As part of the strategy for controlling climate change and ensuring food security, the Saudi Minister stated that his department would facilitate the participation of the Saudi Agricultural and Livestock Investment Company (SALIC) and other private sector companies in the initiative.

In this context, SALIC recently acquired 500 million shares in BRF from Marfrig, in a deal worth R$5.4 (US$1.1) billion.

Moreover, SALIC holds a 31% stake in Minerva.

SALIC’s CEO, Mohammed bin Mansour Al-Mousa, confirmed their interest in the global sustainable food production program.

Apart from joining the agreed-upon governmental working group, the company plans to create and coordinate a second group to identify Saudi companies interested in the initiative.

The project aims to rehabilitate and convert up to 40 million hectares of pastures, which could potentially double Brazil’s food production area without deforestation.

This contributes to global food security and climate change control by reducing carbon emissions.

Further partnerships might emerge in grain trading and agricultural input, as part of the low-productivity pasture recovery efforts.

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