BRF: Plants suspension by Saudi's SFDA in connection with investigations into production of feed, premix
Brazil’s BRF said on Monday (Feb 17) the Saudi Food and Drug Authority has temporarily suspended two of its plants for poultry exports to the Kingdom in connection with alleged violations in feed and premix production.
“The SFDA informs that the measure is temporary and requests from the Brazilian authorities, among other measures, more details about the investigations carried out between 2014 and 2018 regarding alleged violations conducted by the Company in the production of feed and premix, a preparation containing vitamins and amino acids,” said BRF in a stock exchange filing.
Salaam Gateway reported on Monday that SFDA on Feb 10 suspended the two BRF plants from exporting poultry to the Kingdom.
BRF said in its statement that the suspension affects its Dois Vizinhos plant that has an export volume of around 6,000 tons per month to Saudi Arabia. The other suspended facility, in Francisco Beltrão, does not export to Saudi Arabia, according to BRF.
“The Company has already initiated the necessary adjustments to redirect the production to its other plants, until the matter is duly clarified, still possessing five plants with permissions to export to Saudi Arabia. The plants of Dois Vizinhos e Francisco Betrão will be utilized, as of now, to serve other markets,” said BRF.
BRF is one of Brazil’s biggest animal protein companies. It announced in October last year it was investing $120 million in a new chicken processing plant in Saudi Arabia.
A major halal meat exporter, BRF in August last year reported that 59% of the 505 thousand tons it sold internationally in the second-quarter of 2019 were halal.
In 2018, 40% of its supply to the halal markets were locally manufactured in the Middle East, according to its annual report.
In Islamic countries, BRF has a manufacturing plant in Abu Dhabi, UAE, and three in nearby Turkey. It also operates a plant in Malaysia.
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