JBS expands Middle East operations investing $150 million in Oman

By Ana Mano

SAO PAULO, Feb 8 (Reuters) - Global food producer JBS JBS.N has acquired an 80% stake in a new food holding company in Oman, it said on Sunday, expanding its footprint in a fast-growing market that has historically relied heavily on food imports.

KEY CONTEXT

• The world's largest meat firm is investing $150 million to produce poultry, lamb and beef at two Oman facilities.

• JBS CEO Gilberto Tomazoni told reporters the company needs to develop a supply chain in the Middle East, adding it will raise chickens itself and plans to buy cattle and lamb from farmers in Oman and North Africa.

• JBS's Oman beef and lamb facility already exists but has been idle for about a year, Tomazoni said.

BY THE NUMBERS

• Production is expected to begin within six months for beef and lamb, and in a year for poultry.

• JBS partner Oman Food Capital (OFC) will retain a 20% stake in the joint venture.

• The companies expect to reach an annual production capacity of about 300,000 metric tons at the two plants.

• JBS's Oman factories will process approximately 1,000 head of cattle, 5,000 lambs, and 600,000 chickens daily.

ADDITIONAL CONTEXT

• Major Brazilian food firms have been expanding in the Middle East, where food security became a central issue after the COVID-19 pandemic disrupted global supply chains.

• JBS already processes meat in Saudi Arabia and the United Arab Emirates, while rival MBRF MBRF3.SA has strengthened partnerships in the region while planning a Riyadh stock listing.

• JBS's move also mitigates potential fallout from global trade tensions by expanding production into new geographies while building integrated facilities in a region with high income and birth rates.