SAO PAULO: Global food producer JBS announced on Sunday that it will acquire an 80% stake in a new food holding company in Oman, expanding its footprint in a fast-growing market that has historically relied heavily on food imports.
main context
* The world’s largest meat company is investing $150 million to produce chicken, lamb and beef at two facilities in Oman.
* JBS CEO Gilberto Tomasoni told reporters the company needs to build a supply chain in the Middle East, adding that it plans to raise its own chickens and buy cows and lambs from farmers in Oman and North Africa.
* JBS’s Oman beef and lamb facilities already exist but have not been operational for about a year, Tomazoni said.
Look at the numbers
* Production is expected to begin within six months for beef and lamb, and within a year for chicken.
* JBS partner Oman Food Capital (OFC) will hold a 20% stake in the joint venture.
* The companies expect the two plants to reach a production capacity of approximately 300,000 tons per year.
* JBS’s Oman plant processes around 1,000 cows, 5,000 lambs and 600,000 chickens every day.
additional context
– Brazil’s leading food companies are expanding into the Middle East, where food security has become a central issue after the COVID-19 pandemic disrupted global supply chains.
* JBS already processes meat in Saudi Arabia and the United Arab Emirates, and rival MBRF is strengthening its partnerships in the region as it plans to list its shares in Riyadh.
* JBS’s move also eases the potential impact of global trade tensions by expanding production into new regions while building integrated facilities in areas with high incomes and birth rates. (Reporting by Ana Mano; Editing by Gabriel Araujo)
