New Oman-Brazil Joint Venture: Implications for the Meat Production Industry and Investors in Oman
MUSCAT: Brazilian meat giant JBS, recognized as the world’s largest protein producer, has revealed a significant investment of $150 million in Oman. This strategic move establishes the Sultanate as a production hub for poultry, beef, and lamb.
The investment involves acquiring an 80% stake in a new joint venture food entity, formed in collaboration with Oman Food Capital (OFC)—the food and agribusiness division of the Oman Investment Authority (OIA). Following the merger of Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman (FDO), OFC retains a 20% share in the venture.
The joint venture combines two key food industry assets within Oman: a poultry facility in Ibri, anticipated to be operational within approximately 12 months, and a beef and lamb processing plant in Thamrait, which is expected to resume production in about six months.
Once fully operational, the combined facilities are projected to have an annual processing capacity of over 300,000 tonnes, capable of handling up to 600,000 chickens, 1,000 cattle, and 5,000 lambs each day.
JBS CEO Gilberto Tomazoni noted that this investment is part of a larger strategy to diversify geographically and enhance local supply chains in markets with high consumption potential, particularly in the Middle East. This project further extends JBS’s presence in the Gulf region, complementing its existing operations in Saudi Arabia and the United Arab Emirates.
Established in 1953, JBS operates production facilities and distribution networks across the Americas, Europe, Asia, and the Middle East. The company provides fresh and processed protein products to retail, foodservice, and industrial clients in over 100 countries. Additionally, JBS is involved in value-added foods, leather, and by-products. For the fiscal year 2024, JBS reported total net revenue of $77.2 billion.
Special Analysis by Omanet | Navigate Oman’s Market
The recent $150 million investment by JBS positions Oman as a key player in the regional food production sector, creating opportunities for local businesses to engage in enhanced supply chains. However, this also raises risks of increased competition for smaller Omani enterprises. Smart investors should now consider strategic partnerships with established entities like JBS to capitalize on this emerging market trend and bolster their competitive edge.
