Brazil’s BRF to enter Indonesia via joint venture
Agreement with Indofood will cover poultry and processed food.
BRF is to establish a joint venture company in Indonesia with the country’s PT Indofood Sukses Makmur Tbk. The new company, which will operate in the fields of poultry and processed food, sees BRF enter the Indonesian market for the first time.
Indofood is one of Indonesia’s largest companies, with operations in all stages of food manufacturing, from production of raw materials and their processing, through to consumer products. Its business operations included consumer branded products, flour milling, agribusiness, distribution, and vegetable cultivation and processing.
BRF has said that it will contribute its knowledge of the protein-based food processing industry to the joint venture, while Indofood will bring its market access and extensive distribution network.
The two companies will each hold 50 percent in the joint venture and, subject to certain conditions, will jointly invest US$200 million over the next three years.