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Brazilian meat giant JBS has acquired “certain assets” from US-based pork supplier TriOak Foods, strengthening its control over the supply chain.
In a brief market notice today (2 December), JBS said TriOak Foods would “ensure access to a consistent supply of premium pork” through its Iowa and Illinois-based factories.
The deal for the pork producer and grain marketer was closed for an undisclosed sum.
The firm’s US investment comes after JBS pulled out of a bid to take full control of US-based poultry business Pilgrim’s Pride in February, of which it owns 80%.
JBS’s US arm has been the sole buyer of TriOak Foods’ pigs for the past five years, and the company said the two companies had a “strong and long-standing business relationship”.
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TriOak Foods’ facilities include three feed mills, four grain elevators and sow operations in Iowa, Illinois, Colorado and Oklahoma. Agricultural real estate assets in Iowa are not included in the deal.
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By GlobalDataIt adds to JBS USA’s operations in the US, which include five pork production facilities in Illinois, Kentucky, Iowa and Minnesota. It also has a value-added meat processing facility in Minnesota, sow production facilities in Arkansas and Texas, as well as contract sow production facilities in Arkansas, Oklahoma and Missouri.
JBS USA pork president Marty Dooley said: “With a focus on meeting customer and consumer expectations, this announcement means that JBS USA will continue expanding our premium pork product mix, including open pen gestation and Proposition 12-compliant hogs.
“We are grateful for the opportunity to ensure consistent supply to our Ottumwa, Iowa, and Beardstown, Illinois, pork production facilities, which will strengthen our ability to reliably provide high-quality protein to American families.”
The company added in a statement today the deal would “allow JBS USA to ensure consistent supply and increased efficiencies, resulting in affordable, quality products for American consumers and new opportunities for both TriOak and JBS team members”.
Randy Pflum, TriOak Foods president and CEO, said: “I am very proud of all that TriOak has accomplished and am excited to strengthen our relationship with a trusted partner.”
JBS recently expanded its presence in the Middle East with the purchases of factories in factories are in Saudi Arabia and in the United Arab Emirates. The meat processing firm said the two sites are part of its strategy to expand its presence in the manufacturing and distribution of prepared foods, with the intention of “becoming a leader” in the Halal market.
And at the beginning of the year, it bolstered its presence in Australia, acquiring pork processor Rivalea. JBS said the deal made it “the leader in pork processing in the country”.