JBS expands production in Australia

Australia's largest MEAT processor, JBS-Foods Group, is currently planning to enter the pork market through a corporate acquisition.

The company said it will acquire Australia's largest pork producer Rivalea for A$175 million (€111 million) from its previous owner Singapore-based QAF Ltd. However, the deal must be approved by the Australian competition authorities. Rivelea owns a network of about two dozen fattening pigsties and several breeding operations, including a plant in Wimmer, Victoria, which has about 40,000 breeding sows. In addition to 7,600 hectares of agricultural land, the company also owns two slaughterhouses that process about 1.4 million pigs per year, as well as a national and international pork marketing network.

Previously, JBS only worked in Australia with Primo, a leading producer of mainly pork sausages, but also ham and bacon, with an annual production of around 130,000 tonnes. Together with Rivelea, the international meat giant, which is already Australia's largest producer of beef and lamb, will account for about one third of Australian pork production in the future. “We intend to increase the use of local pork in JBS Australia, especially in our Primo business, by further increasing value and processing, and developing new opportunities for Australian pork in international EXPORT markets,” said JBS Australia CEO Brent Eastwood.

Tim Kingma, president of the Victorian Pig Producers Association, said the acquisition is a significant milestone for the industry. He said he hoped more Australian pork would hit supermarket shelves as a processed product. “If JBS also increases exports, this will be another plus for our industry,” Kingma said.