The company has acquired a production plant and announced plans to expand its burger production lines, with a total investment of R$460 million.
After posting strong third-quarter results, including its first dividend payment to shareholders since 2016, BRF is advancing its internationalization strategy. The food company, controlled by Marfrig, has purchased a meat processing plant in Zhoukou, Henan province, China, for R$250 million. With this acquisition from Henan Best Foods Co. Ltd, BRF establishes its first industrial operation in China, where it already sells its products, aiming to expand its presence in Asia.
In addition to the purchase price, BRF plans to invest R$210 million in upgrades to the facility and expanding two burger production lines. Currently, the plant has a processing capacity of approximately 30,000 tons per year.
Strategic Growth
Marcos Molina, Chairman of the Board for both BRF and Marfrig, stated to Valor that the investment marks “BRF’s advance into a new phase of growth after two and a half years of redefining the company’s strategic focus.” He highlighted that during this period, the company achieved operational efficiency improvements and restructured its capital base with the support of strategic partners like Salic (Saudi Agricultural and Livestock Investment Company) and PIF (Saudi Arabia’s Public Investment Fund).
BRF estimates the investment will create around 850 new jobs and double the plant’s capacity to approximately 60,000 tons per year. The facility is expected to begin operating under BRF management in the first quarter of 2025.
The acquisition aligns with the company’s strategy to expand its global footprint, diversify geographically, and increase its offerings of higher-value products. Moreover, it provides direct access to China’s vast market.
Pioneering Brazilian Production in China
“BRF becomes the first Brazilian protein company to own a factory in China, leveraging Marfrig’s nearly nine years of experience operating in the Chinese market during our time with Keystone Foods,” Molina remarked, referring to a company Marfrig sold to Tyson Foods in 2018.
The Henan factory’s raw materials will come from both local sources and BRF and Marfrig facilities in Brazil, Argentina, and Uruguay, all of which are authorized to export to China. Initially, the plant will produce chicken-based products, but plans are underway to expand into beef and pork.
The facility is also envisioned as an export hub to supply other Asian countries, although its primary focus will remain on China’s massive consumer market. “The plant’s location enables direct access to a region with 100 million people and a rapidly growing consumer base. Initially, the operation will serve the Chinese market, but nearby markets with potential will also be evaluated,” Molina added.
Strategic Location
Henan, located in central China, is the country’s third most populous province. BRF emphasized its strategic importance as a logistics hub, connecting northern and southern regions.
The products manufactured at the facility will be sold under BRF’s brands, primarily Sadia, which has become the company’s global flagship brand. Additionally, the plant will supply China’s growing food service industry.
Expanding Global Presence
China represents BRF’s latest move to localize production. The company has already implemented similar strategies in the Middle East, focusing on the halal market. It operates factories in the United Arab Emirates, Saudi Arabia, and Turkey, and recently began producing chicken in Saudi Arabia. Through its joint venture, BRF Arabia Holding Company, it acquired 26% of Addoha Poultry Company, a leading Saudi poultry firm.
Financial Recovery and Future Plans
BRF’s recovery phase signals continued growth ambitions. During a conference call to discuss third-quarter results last week, executives highlighted plans to intensify investments in 2025.
The company reported a record net profit for the third quarter of R$1.137 billion, a significant turnaround from the R$262 million loss in the same period last year. It also reduced its leverage ratio (net debt to EBITDA) to a historic low of 0.71x.
These positive financial results bolster BRF’s vision for continued global expansion and operational growth in the years ahead.
