JBS is investing $2.5bn to establish six meat-processing facilities in Nigeria.
The Brazil-headquartered protein giant, which generated almost $73bn in global revenue last year, has signed a memorandum of understanding with the government in Nigeria.
Of the six plants, three will be for poultry, two for beef and one for pork, JBS said in a statement, adding the projects are geared toward “sustainable production chains for food production” in the African country.
Citing data from the World Food Programme, JBS said Nigeria has “one of the highest rates of food insecurity in the world, with 24.8 million people going hungry”. The company also pointed to figures from the World Bank, which it said showed that in sub-Saharan Africa “76% of the population in extreme poverty lives from agriculture”.
JBS’s CEO Gilberto Tomazoni said: “Our goal is to establish a strong partnership and support Nigeria in tackling food insecurity. The experience in the regions where we operate around the world shows that the development of a sustainable food production chain generates a virtuous cycle of socio-economic progress for the population, especially in vulnerable groups.”
Under a five-year investment plan, JBS said it will conduct “feasibility studies, preliminary designs of the facilities, budget estimates and an action plan for supply chain development”.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
In turn, the company added, Nigeria’s government will “ensure the economic, sanitary and regulatory conditions necessary for the feasibility and success of the project”.
Tomazoni added: “Our goal is to collaborate with the Government of Nigeria to support the implementation of the National Food Security Plan, sharing our expertise in developing a sustainable agro-industrial chain and best practices, with the aim of increasing the country’s efficiency, productivity and productive capacity.”
JBS noted that “protein production” in Nigeria accounts for 10% of its GDP and only serves 40% of the domestic demand.
Within its plans to develop local production chains, JBS said it will support “small producers” and help foster “sustainable agricultural practices”.
Nigeria is JBS’s latest expansion project. During the summer it announced the business would quadruple production in Saudi Arabia with a new chicken facility in Jeddah. The company also has a processing unit in the city of Dammam.
Elsewhere this year, JBS revealed it was channelling investment into its Huon Aquaculture salmon-farming business in Australia.
It also said it planned an additional production line for beef patties in Canada for its Brooks, Alberta, facility.
