0
JBS, one of the world's largest food companies, signed a memorandum of understanding (MoU) with the Government of Nigeria on Thursday (November 21) to invest in developing sustainable supply chains for food production in the African country.
As Africa's largest economy and most populous nation, Nigeria also has one of the world's highest population growth rates. According to United Nations projections, Nigeria's population is expected to reach 400 million by 2050, up from its current 250 million. The country's GDP, currently at $363.82 billion, could more than double to $1 trillion by 2050. Simultaneously, Nigeria faces one of the highest rates of food insecurity globally, with 24.8 million people suffering from hunger (WFP). In Sub-Saharan Africa, 76% of the population living in extreme poverty depends on agriculture (WB).
"Our goal is to establish a strong partnership and support Nigeria in addressing food insecurity. Our experience in regions where we operate worldwide shows that developing a sustainable food production chain creates a virtuous cycle of socio-economic progress, particularly for vulnerable populations," said Gilberto Tomazoni, Global CEO of JBS.
Under the MoU, JBS will develop a five-year investment plan, including feasibility studies, preliminary project designs, budget estimates, and an action plan for supply chain development. The Nigerian Government, in turn, will ensure the necessary economic, sanitary, and regulatory conditions for the project's success. The agreement outlines the construction of six plants—three for poultry, two for beef, and one for pork—with an investment of $2.5 billion.
Protein production in Nigeria accounts for 10% of GDP and supplies 40% of domestic demand. Expanding local production has the potential not only to improve food security but also to significantly reduce imports, generate local jobs, and support millions of small-scale farmers.
JBS's investment plan in Nigeria will include extensive efforts to develop local supply chains, providing support to small producers and promoting sustainable agricultural practices, similar to the company's initiatives with thousands of partners in other regions worldwide. One example is the Green Offices program, which offers free technical assistance to Brazilian farmers to increase production efficiency while meeting the highest socio-environmental standards.
According to a report by the B20 Food Systems Task Force, the business arm of the G20 during Brazil's presidency, stimulating productivity growth through the adoption of innovative technologies and technical assistance for farmers, especially smallholders, is essential to increase agricultural output while preserving natural resources and ensuring vulnerable populations have access to quality food. This recommendation was adopted in the G20 leaders' final declaration.
"Our goal is to collaborate with the Nigerian Government to support the implementation of the National Food Security Plan, sharing our expertise in developing sustainable agro-industrial supply chains and best practices to enhance the country's efficiency, productivity, and production capacity," Tomazoni concluded.
November 22, 2024 - JBS
