The investment firm of Saudi agriculture is to expand to Australia through a partnership agreement with the Brazilian livestock company.
The Saudi Agricultural and Livestock Investment Co. (SALIC), a joint venture owned by the Public Investment Fund, has entered into an agreement with Brazil's Minerva Foods to acquire assets in Australia and has established a joint venture for the processing and export of beef and lamb products.
Minerva Foods said in a statement that Australia "uniquely complements our activities in South America," optimising revenue prospects and operational synergies, eliminating costs, and contributing to the company's consolidation strategy in the animal protein export segment.
Minerva will supply its goods to SALIC for sale in the Middle East and Asia under a second arrangement.
Minerva said in a statement that the collaboration would increase its presence in those areas, noting that the Middle East and Asia accounted for about 55% of its beef exports in the first nine months of last year. SALIC can buy up to 25,000 tonnes of Minerva's products per year, according to the meat packer.
SALIC announced that it would increase its stake in Minerva from 25.5 percent to 33.83 percent. “Minerva Foods is one of the largest meat processing companies in South America and the second-largest exporter in Brazil, producing more than 1 million tonnes of meat annually,” SALIC said at the time.
Minerva Foods primarily caters to the needs of international customers, having already shipped 750,000 tonnes of red meat to more than 100 countries this year.
Minerva was established in 1992 and currently operates 25 slaughterhouses and three processing plants across South America, with annual revenues of 19 billion Brazilian reals ($3.54 billion) for the fiscal year ending June 30, 2020.
SALIC first invested in the Minerva company in 2015, purchasing a 19.95 percent stake. SALIC has been working in the agricultural and livestock investment sector since 2012, with the strategic aim of securing important food commodity imports as part of the Kingdom's food security policy.
Saudi Arabia consumes 550,000 tonnes of red meat each year, 70% of which is imported, according to SALIC.
Congratulation!