RIYADH — Saudi Agricultural and Livestock Investment Company (SALIC), which is owned by the Public Investment Fund, has signed a memorandum of understanding with the Brazilian Company Minerva Foods to establish a joint venture in Australia for processing and export of red meat.

The MoU is within the framework of SALIC’s role and contribution to the food security system in the Kingdom by creating a series of sustainable agricultural investments in multiple geographic regions.

The move comes as part of SALIC's strategy to focus on two basic commodities which are grains and red meat in Australia, the company said. SALIC also pointed out that its fully owned subsidiary Australian Meridian Farms complements Minerva Foods’ intention to expand its investments also by increasing its sales opportunities and reducing risks to its operations in the field of red meat.

Australia is one of the largest countries in the world in terms of the volume of livestock and the largest exporter of processed meat to the Middle East and Saudi Arabia.

"Minerva Foods" is considered to be one of the largest companies for producing meat in South America and the second-largest exporter in Brazil, as it produces more than a million tons of livestock to more than 100 countries around the world.

Last September, SALIC announced an increase in its shares in Minerva Foods to 34 percent, as red meat presents one of the most important basic food commodities targeted by SALIC, as the Kingdom's import of red meat amounts to about 400,000 tons annually. — SG