BRF to form JV with Indofood to explore Indonesian poultry market

Brazil-based BRF has agreed to form a joint venture (JV) with Indonesian PT Indofood Suskes Makmur, involving an investment of nearly $200m over the next three years.

BRF said in a statement that it has signed a binding memorandum of understanding (MoU) with Indofood to explore the poultry and processed foods businesses in Indonesia.

BRF will enter the high protein-consuming Indonesian market, which has more than 250 million people.

The two companies will each hold 50% ownership and are expected to invest $200m in the new venture.

Indofood is considered to be one of Indonesia’s largest companies and offers operations in all stages of food manufacturing including production of raw materials and their processing, to consumer products.

BRF’s business operations include consumer branded products, flour milling, agribusiness, distribution, cultivation and processed vegetables.

Following the JVC, BRF will provide its expertise in the protein-based food processing industry, while Indofood will contribute its market access in Indonesia, which will help it grant access to its extensive distribution network.

The transaction is in line with BRF’s strategic plan for globalising the company by increasing access to local markets, strengthening BRF’s brands, distributing and expanding its product portfolio around the globe.

Created in 2012 after the merger of the Brazilian companies Perdigão and Sadia, BRF is the owner of brands that include Sadia, Perdigão, Qualy, Batavo, Elegê, Chester, Perdix and Paty.

Indofood specialises in producing noodles, dairy products such as sweetened condensed, liquid and powder milk, ice cream, yoghurt drinks, and butter, as well as culinary products and syrups, snacks foods.

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Image: Indofood produces noodles, dairy products such as sweetened condensed, liquid and powder milk, ice cream, yoghurt drinks and butter. Photo: courtesy of rakratchada torsap/freedigitalphotos.net.