By Brazil Stock Guide – JBS (B3: JBSS3; NYSE: JBSAY) has inaugurated a processed foods factory in Jeddah, strengthening its local manufacturing presence in the Middle East. The company said it plans to double the plant’s capacity by the end of 2026, underscoring a strategic pivot from exporting to producing inside one of its most important overseas markets.
JBS said total investments in Saudi Arabia now amount to $85 million, covering the Jeddah facility, a second industrial unit in Dammam, and distribution infrastructure across the country. The plants focus on processed and value-added food products designed for the local market, rather than raw meat exports.
Saudi Arabia has historically been a major buyer of Brazilian chicken. In recent years, however, the kingdom has promoted policies aimed at increasing domestic food production to reduce dependence on imports and improve supply security. JBS’s decision to expand local capacity aligns with that policy shift and allows the company to stay close to consumers while complying with local regulations and standards.
Producing locally also reduces exposure to shipping costs, exchange-rate volatility and potential trade disruptions, while opening room for higher margins typically associated with processed foods. Company executives have described the Saudi operations as part of a broader regional platform, combining manufacturing, logistics and product customization for Middle Eastern consumers.
By committing to double capacity in Jeddah by 2026, JBS signals that the Middle East is no longer just an export destination but a strategic production base. The move reflects how global food companies are adapting to changing trade patterns and government-led food-security strategies around the world.