JBS to invest US$2.5B in six meat-processing plants in Nigeria

NIGERIA – Brazil-based meat producer JBS is allocating US$2.5 billion to establish six meat-processing facilities in Nigeria as part of a partnership with the Nigerian government.

The company, which reported global revenues of nearly US$73 billion last year, formalized the agreement through a memorandum of understanding.

According to the signed memorandum, JBS will implement a five-year investment plan, which includes conducting feasibility studies, preparing budget estimates, and developing an action plan to enhance the local supply chain.

In return, the Nigerian government will ensure that the necessary economic, sanitary, and regulatory conditions are in place to ensure the project’s success, JBS added.

The company emphasized that the initiative is aimed at creating sustainable food production systems in the country.

JBS intends to also collaborate with the Nigerian government in implementing the National Food Security Plan by sharing expertise in agro-industrial development and sustainable practices.

Citing data from the World Food Programme, JBS mentioned Nigeria’s severe food insecurity, with approximately 24.8 million people experiencing hunger. 

It also referred to World Bank statistics indicating that 76% of those living in extreme poverty in sub-Saharan Africa depend on agriculture for their livelihood.

Currently, protein production in Nigeria accounts for 10% of the country’s GDP but meets only 40% of domestic demand, according to JBS.

With a population exceeding 220 million, Nigeria’s meat market is one of the largest in Africa, with an estimated annual consumption of over 1.5 million metric tonnes of various types of meat, including beef, poultry, fish, goat, and sheep.

According to Agripeller.ng, per capita meat consumption in Nigeria is approximately 7.3 kg per year. Although this figure is lower than the global average, consumption is steadily increasing due to rising incomes and urbanization.

Beef and poultry are the most consumed meats in Nigeria, with the country consuming around 360,000 metric tonnes of beef and 400,000 metric tonnes of poultry annually.

The growing population, increasing incomes, and urbanization are expected to continue driving demand for meat, even as the country undergoes significant demographic growth and changing food habits.

A report from ReportLinker suggests that Nigerian meat production is expected to grow, reaching nearly 1.6 million metric tonnes by 2028, up from around 1.6 million metric tonnes in 2023. This reflects an average annual growth rate of 0.8%. 

This move is the latest in JBS’s global expansion efforts. Earlier this year, the company announced plans to increase chicken production in Saudi Arabia through a new facility in Jeddah. 

Investments have also been directed toward its Huon Aquaculture salmon operations in Australia and a beef patty production line in Alberta, Canada.

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