BRF Expands Middle East Footprint with Strategic Saudi Poultry Investment

BRF, Brazil’s leading food company, has finalized a strategic acquisition that significantly bolsters its presence in the Middle East’s halal food market.

On January 14, 2025, BRF announced the completion of its purchase of a 26% stake in Saudi Arabia’s Addoha Poultry Company for $84.3 million. This deal marks BRF’s entry into local halal chicken production in Saudi Arabia.

The company has been operating in the Saudi market for five decades. The investment comes through BRF Arabia, a joint venture between BRF (70%) and Saudi Arabia‘s Halal Products Development Company (30%).

The transaction includes a direct investment of $57.6 million into Addoha to enhance its production capacity and operational efficiency. This move aligns with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and strengthen food security.

BRF’s expansion strategy focuses on becoming a global food company with a strong local presence. By producing halal chicken locally, BRF can potentially increase its market share and reduce transportation costs in the region.

The global halal food market is experiencing significant growth, with projections indicating a 6.6% annual increase from 2022 to 2027. This acquisition positions BRF to capitalize on this trend, particularly in the Middle East and Africa region.

BRF’s Chairman, Marcos Molina, described the deal as “a significant step in a highly strategic market for the company.” The investment is expected to bring several benefits, including increased market share, cost efficiency, and potential new product development.

However, this acquisition reflects a broader trend of international food companies investing in local production. The goal is to meet the growing demand for halal-certified foods.

It also demonstrates BRF’s commitment to supporting Saudi Arabia’s food security initiatives while expanding its global reach.

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