NEWS BRF ENTERS TURKEY, WORLD’S LARGEST CONSUMER OF HALAL CHICKEN The company signs an agreement to acquire the operations of Banvit, the country’s largest poultry producer and market Leader In yet another step in its international expansion, BRF arrives in Turkey, the world’s largest consumer of halal chicken, to acquire the operations of Banvit, the country’s largest poultry producer and market leader. The transaction will be via a joint venture between BRF and Qatar Investment Authority (QIA), the sovereign fund of Qatar, which will hold 60% and 40% interests, respectively. Banvit is a fully integrated producer, with facilities ranging from feed control to final food processing. The company has five feed plants, four hatcheries and five production plants. “The units are located in the country’s West, which concentrates most consumers, and East, which positions it as the only company capable of serving both the domestic and export markets,” said Pedro Faria, Global CEO of BRF. The assets of Banvit will be incorporated into OneFoods, a BRF subsidiary led by Patricio Rohner and dedicated to the halal market. “The acquisition of Banvit is the first step on the agenda to accelerate the growth of OneFoods, which holds market share in chicken products of approximately 45% in Saudi Arabia, United Arab Emirates, Kuwait, Qatar and Oman, countries where it operates with own distribution and a broad product portfolio,” explained Rohner. Turkey, which has a population of 80 million, accounts for 10% the global consumption of halal poultry. Even so, local per-capita chicken consumption is low, at around 20 kilograms per year, and the penetration of processed food products is low, which means that the Turkish market offers excellent potential for growth. “In addition to the growth opportunities offered by the Turkish market, especially in processed products, we see important commercial and operational synergies to capture by integrating the operations of Banvit and OneFoods, which will further consolidate our strength and leadership in the halal animal protein market,” said Rohner. The consummation of the transaction, which in its first phase involves the acquisition of a 79.5% interest in Banvit, followed later by a tender offer for the remaining minority interest of 20.5%, is subject to fulfillment of the conditions precedent in the final documents, including approval by the antitrust authority. Banvit’s firm value was estimated at US$470 million. www.brf-global.com IFA RAISES BREXIT THREAT WITH MINISTER FOR AGRICULTURE IRELAND - IFA President Joe Healy emphasised the need for Government to use its strong relationships with EU and UK leaders to influence a constructive approach to Brexit negotiations with Minister for Agriculture Michael Creed at the IFA Annual General Meeting. The impact of Brexit was among a number of key farming issues under discussion with the Minister. The IFA President has said that the signal by Prime Minister Theresa May that the UK intends to exit the single market is a major cause of concern to Irish farmers with the potential to seriously damage trade with the UK. “With 40 per cent of Irish food exports going to the UK, no other member state and no other sector are as exposed in the Brexit negotiations. Already, Irish farmers have taken most of the pain resulting from the weakness of sterling as a result of Brexit. Beef farmers took a hit of €150m last year from this alone and mushroom growers saw their margins wiped out.” The IFA President warned that politics cannot be allowed to override fundamental economic interests, and farmers expect the Minister and Irish Government to use the strong relationship they have with both EU and UK leaders to influence a constructive approach. He said the retention of free trade in agriculture and food products between the EU and UK must be a priority. Mr Healy also warned against any reduction in the CAP budget as a result of Brexit, saying if EU solidarity means anything, then the budget shortfall must be made good so that farmers are not hit with CAP cuts when the UK leaves. www.thecattlesite.com 44 www.meatingpoint-mag.com | <strong>2017</strong>
26 Feb - 2 Mar <strong>2017</strong> Dubai World Trade Centre THE BIGGEST FOOD BUSINESS ...is your business. Make it bigger by visiting Gulfood. INNOVATION. TASTES. TRENDS. Register at gulfood.com ORGANISED BY OFFICIAL AIRLINE PARTNER OFFICIAL COURIER HANDLER OFFICIAL TRAVEL PARTNER
Change language