Brazilian protein giant JBS has announced a groundbreaking $2.5 billion investment plan to establish six meat-processing facilities in Nigeria, underscoring its commitment to tackling food insecurity in the region. This initiative marks a significant step in JBS’s global expansion strategy and its ongoing efforts to foster sustainable food production.
Details of the Investment
The memorandum of understanding between JBS and the Nigerian government outlines the construction of three poultry facilities, two beef plants, and one pork processing unit, with a total investment of $2.5 billion.. Over the next five years, JBS will carry out feasibility studies, preliminary designs, budget estimations, and develop an action plan to support local supply chains. In return, the Nigerian government has pledged to create the economic, sanitary, and regulatory conditions necessary for the project’s success.
Addressing Food Insecurity
Nigeria faces a dire food security challenge, with 24.8 million people experiencing hunger, according to the World Food Programme. JBS’s CEO, Gilberto Tomazoni, emphasized the company’s dedication to addressing these issues: “Our goal is to establish a strong partnership and support Nigeria in tackling food insecurity. A sustainable food production chain can generate socio-economic progress, particularly for vulnerable groups.”
The investment aligns with Nigeria’s National Food Security Plan, aiming to increase efficiency and productivity in its protein production sector. Notably, protein production in Nigeria accounts for 10% of its GDP but meets only 40% of domestic demand. JBS’s plans include supporting small producers and promoting sustainable agricultural practices to bridge this gap.
JBS’s investment strategy in Nigeria will focus on fostering robust local supply chains by supporting small-scale producers and promoting sustainable agricultural practices. These efforts align with the company’s global initiatives, such as the Green Offices program in Brazil, which provides farmers with free technical support to enhance production efficiency while adhering to high socio-environmental standards. Through similar initiatives, JBS aims to combine increased productivity with responsible environmental stewardship in Nigeria.
Socio-Economic Impact
JBS believes the new facilities will create a “virtuous cycle” of development in Nigeria, improving food access and boosting economic opportunities. By sharing its expertise in agro-industrial best practices, the company aims to enhance Nigeria’s productive capacity and establish a robust, sustainable production chain.
“Our goal is to collaborate with the Nigerian Government to support the implementation of the National Food Security Plan, sharing our expertise in developing sustainable agro-industrial supply chains and best practices to enhance the country’s efficiency, productivity, and production capacity,” Tomazoni stated.
A Broader Expansion Strategy
This move is part of JBS’s broader strategy to expand its global footprint. Earlier this year, the company announced plans to quadruple chicken production in Saudi Arabia and invest in salmon farming in Australia. In Canada, JBS is also adding a new beef patty production line to its Brooks, Alberta facility.
