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Wed 14 Aug 2019 11:35 AM

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Brazilian food giant BRF to reopen plant serving Middle East

Plant predominantly exports chicken to Middle East markets

Brazilian food giant BRF to reopen plant serving Middle East
The facility – known as Lejeado – had been exporting around 6,500 tonnes of chicken products to Saudi Arabia each month before the Saudi government significantly reduced the number of Brazilian exports allowed to ship there.

Brazilian food giant BRF SA has revealed it will reopen a plant in the southern town of Carambei in September.

Located in the Brazilian state of Parana, Carambei predominantly exports chicken to Middle East markets but its poultry processing plant was closed for five months at the end of May in an effort to balance supply and demand.

However, according to a report from news agency Reuters, chief executive Lorival Luz said the plant would reopen ahead of schedule, as an improved operating environment had boosted the company’s balance sheet and outlook.

BRF, one of the largest food companies in the world, ended the second quarter of 2019 with a profit of BRL 191 million ($48m). The robust result came from higher revenues derived in the domestic and foreign markets, combined with stronger operating and commercial performance.

In January, the firm announced that it planned to restore chicken exports to Saudi Arabia to previous levels after one of its plants lost its certification to export to the kingdom.

The facility – known as Lejeado – had been exporting around 6,500 tonnes of chicken products to Saudi Arabia each month before the Saudi government significantly reduced the number of Brazilian exports allowed to ship there.

In an interview with Bloomberg, Luz said that the company was in advanced talks with more than one party in Saudi Arabia to produce chicken in the kingdom.

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