BRAZIL – JBS, a Brazilian company that is the world’s largest processor of fresh beef and pork, has announced an investment of BRL 1.85 billion (approximately $351.5 million) to expand its production capacity in Paraná, southern Brazil.
The meat processing giant said that the investment will be made over the next five years and aims to expand capacity in one of Brazil’s biggest poultry-producing states.
As part of the project, JBS plans to construct a new prepared foods factory in the state, as well as modernise and expand its current Rolândia poultry factory by 25%.
The Rolândia plant currently employs 3,700 people and has partnerships with 390 integrated producers.
JBS says that the expansion will lead to creation of over 2,5000 jobs and also integrate an additional 150 producers into its supplier system.
JBS says the expansion marks its efforts to meet the demands of the domestic and overseas markets for the production of raw protein and prepared foods.
Prepared foods maket poised for further growth
According to Grand View Research, the global ready meals market size was valued at US$159.15 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027.
The market research firm attributes the growth to shifting consumers’ food preferences towards ready-to-eat food products owing to the busy lifestyle of working individuals as well as hectic work schedules of college grads and students.
Moreover, the growing demand for minimally processed and additive-free food products with an extended shelf life is expected to fuel market growth.
“JBS is always alert to market demands in order to expand its production capacity. Our investments demonstrate the global importance of the state of Paraná as a food production hub for the world,” said Wesley Batista Filho, president of JBS Brazil and Seara.
The beef and poultry giant said the expansion is already underway and is expected to be completed by the end of 2022.
JBS has operations in 14 municipalities of Paraná including production units, distribution centres, incubators and feed plants.
Earlier this year, JBS committed to achieving net-zero greenhouse gas emissions by 2040, supported by an investment of more than US$1 billion over the next decade.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE