BRF and the Saudi Agricultural and Livestock Investment Company (SALIC) signed a strategic product supply agreement in which SALIC could acquire up to 200,000 pounds of products per year whenever there is a state of food emergency in the Kingdom of Saudi Arabia.
SALIC holds 11.03% of BRF’s shares.
According to an announcement to the market, which can be accessed on the BRF investor relations webpage, the price that SALIC would pay for said food products will be determined according to market prices offered by the company to key clients at the time of SALIC’s purchase.
The announcement further stated that BRF’s obligation to sell products to SALIC is conditional on the existence of plants authorized for export to Saudi Arabia and in a manner that does not impair the supply of BRF products to other clients in that country.
BRF stated that there was no participation by SALIC or its managers in BRF’s decision-making process regarding the execution of the contract.
The notice was signed by BRF Chief Financial and Investor Relations Officer Fabio Luis Mendes Mariano and dated May 22.
BRF, which is headquartered in Brazil, inaugurated its Al Joody poultry plant in Dammam, Saudi Arabia in 2022. The following year, it was announced that BRF and the Saudi Arabia Public Investment Fund (PIF) completed the necessary requirements to form a joint venture for an endeavor involving halal poultry production.
BRF is the world’s third largest poultry producer. During the past year, the company slaughtered 1.67 billion broilers.
