BRAZIL – Brazilian meatpacking giant JBS has signed a memorandum of understanding with Nigeria’s government to launch a US$2.5 billion investment initiative aimed at bolstering food production in the West African country.
The agreement includes plans to establish six new meat-processing facilities over the next five years.
According to JBS, three of the plants will specialize in poultry, two in beef, and one in pork. The company has committed to conducting feasibility studies, preliminary designs, budget estimates, and supply chain development as part of the investment plan.
Partnership to address food insecurity
This investment aligns with Nigeria’s National Food Security Plan. The Nigerian government has pledged to create the economic, sanitary, and regulatory conditions necessary for the project’s success.
“Our goal is to establish a strong partnership and support Nigeria in tackling food insecurity. The development of a sustainable food production chain generates a virtuous cycle of socio-economic progress for the population, especially in vulnerable groups,” JBS CEO Gilberto Tomazoni highlighted the significance of the partnership in addressing food insecurity.
Citing World Food Programme data, JBS noted that Nigeria has one of the world’s highest rates of food insecurity, with 24.8 million people experiencing hunger.
The World Bank estimates that 76% of sub-Saharan Africa’s extremely poor population relies on agriculture for their livelihoods, underscoring the need for strengthened local supply chains.
Focus on sustainability and local development
JBS’s investment will focus on developing sustainable production chains, supporting small-scale producers, and encouraging environmentally responsible agricultural practices.
The company stated that protein production currently contributes 10% to Nigeria’s GDP but only meets 40% of domestic demand, highlighting the need for expansion to meet local consumption needs.
Global expansion strategy
This project in Nigeria marks JBS’s latest move in its global expansion strategy. Earlier this year, the company announced plans to quadruple chicken production in Saudi Arabia with a new facility in Jeddah and expand beef patty production in Canada at its Brooks, Alberta, plant.
JBS is also investing in its Huon Aquaculture salmon-farming operations in Australia.
