Saudi poultry company Tanmiah Food has signed an MoU with Brazilian counterpart Vibra Agroindustrial to assess “potential investment and strategic collaboration”.
The MoU has a tenure of two months, with a provision for extension “if mutually agreed”, Tanmiah said in a statement to the Saudi stock exchange.
The investment will be directed towards Tanmiah’s processing capacity and improving operational efficiency.
Additionally, it seeks to establish a Saudi-based “global” Halal brand, using the country’s Halal standards and Vibra’s “cost-efficient” production expertise in Brazil.
Tanmiah said the potential initiatives form part of its “strategic vision” for global food sector “leadership” and “sustainable growth”.
The latest partnership comes on the heels of Tanmiah’s financial results for 2024, which showed increases in revenue and profit.
The company generated revenue of approximately SR2.56bn (around $682.7m), a 22.5% growth from the prior year, benefitting from higher sales volumes, channel expansion and wider geographical coverage.
Net profit attributable to the shareholders stood at SR95.8m in FY24, 26.2% higher than the previous year, supported by “cost optimisation”.
In December, Tanmiah’s Agricultural Development Company subsidiary struck a deal with Dajin Poultry Company to acquire a poultry processing facility in Saudi Arabia.
In September, Saudi Arabia acquired a minority share in Ukraine poultry processor and agri-food group MHP.
State vehicle The Saudi Agricultural and Livestock Investment Company (Salic) has bought 12.6% of London-listed MHP after purchasing from the market more than 13.5m of the group’s global depositary receipts (GDR).
Saudi Arabia’s Vision 2030 strategy involves having more food produced locally as a food security measure.
