São Paulo – Brazilian food processor BRF said on Monday (24) it has agreed to form a joint venture with Saudi Arabia’s Halal Products Development Company (HPDC) in a bid to develop the halal meat industry in the Middle East country. HPDC is a subsidiary of the Public Investment Fund (PIF) that aims to support the development of the halal industry in Saudi Arabia by fostering innovation and driving growth across the halal ecosystem.
The joint venture foresees the creation of Halal Headquarters, a Halal Food Innovation Center and a Center of Excellence in Saudi Arabia. HPDC is a consultancy company which deals with commercial development of top-quality products in Gulf and South-East Asia markets.
According to BRF, the entity will operate in the entire chicken production chain in Saudi Arabia and promote the sale of fresh, frozen and processed products
BRF, which will own up to 70% of the joint venture, said the new company will have a combined investment of USD 500 million, of which USD 125 million will be contributed by BRF GmbH (a holding of the Brazilian firm in Austria) and by the Saudi company upon the incorporation of the joint venture company. The announcement says the remainder will be contributed pursuant to the investment plan to be prepared by the parties.
Translated by Guilherme Miranda
