Investing

JBS to boost chicken processing capacity in Jeddah through 2026

Pinterest LinkedIn Tumblr

JBS, the world’s largest meat processor, will expand production capacity at its chicken processing plant in Jeddah in two phases through the end of 2026, the company said in a statement on Thursday.

The move forms part of the second phase of expansion at the facility, which was built from the ground up by the Brazilian company and has been in operation since last year.

The Jeddah plant has played a central role in JBS’s expansion in Saudi Arabia, enabling the company to quadruple its total production capacity in the kingdom since the facility began operations.

From this base, JBS produces and sells beef and chicken under its Seara brand, supporting its strategy to become a major local supplier in one of the region’s largest food markets.

Supporting Saudi Arabia’s food strategy

JBS’s investment aligns with Saudi Arabia’s broader push to expand domestic food production as the kingdom seeks to reduce its dependence on imports.

By increasing local processing capacity, JBS is positioning its growth strategy alongside Riyadh’s stated objective of strengthening food security through domestic production.

The approach is not unique to JBS. Rival Brazilian food producer MBRF has also outlined plans to expand in the Saudi market, underscoring growing competition among global meat companies seeking long-term footholds in the country.

Together, these investments underscore Saudi Arabia’s rising appeal as a regional centre for food manufacturing and distribution.

Competitive moves from Brazilian rivals

MBRF has signed an investment agreement with Saudi Arabia’s Halal Products Development Company to strengthen its local joint venture.

The agreement is intended to support the expansion of domestic operations and could allow the partners to prepare for a potential initial public offering of the venture on the Riyadh stock exchange by 2027.

Separately, MBRF is developing a food manufacturing facility in Jeddah, Saudi Arabia’s second-largest city.

The plant is expected to process about 40,000 tonnes of beef products annually from mid-2026.

Taken together, the parallel expansion plans point to intensifying competition in Saudi Arabia’s meat and poultry sector, particularly in chicken processing and value-added products.

Development of the Seara brand

JBS has steadily expanded the presence of its Seara brand since entering the Saudi market in 2021.

The company says Seara now ranks among the top three brands in the country by market share, a rise it attributes to increased local production and broader distribution.

In addition to the Jeddah facility, JBS operates a plant in Dammam that produces beef burgers and other chicken products.

Together, these operations form the core of JBS’s manufacturing footprint in Saudi Arabia, supporting both domestic demand and regional exports.

Partnerships and investment scale

A further step in expanding JBS’s presence in Saudi Arabia is its partnership with the Arabian Company for Agricultural and Industrial Investment, under which products will be manufactured locally for the Seara brand.

The agreement brings a domestic industrial partner into JBS’s strategy and underscores the company’s focus on increasing in-country manufacturing capacity rather than relying solely on imports.

Since 2021, JBS has invested $85 million in Saudi Arabia, funding construction, operational ramp-up, and the development of supply chains linking Saudi-based operations with neighbouring markets.

The post JBS to boost chicken processing capacity in Jeddah through 2026 appeared first on Invezz