JBS acquires Rivalea

JBS will become the largest pork processor in Australia after agreeing to purchase 100 per cent of Rivalea Australia from Singapore-listed food company QAF Limited for $175 million.

As the nation’s biggest piggery operator and pig meat processor, Rivalea employs more than 1,200 people across NSW and Victoria including the abattoir outside of Corowa and is a majority shareholder in Diamond Valley Pork in Melbourne.

Last year, the company processed about 26 per cent of Australia’s pig meat, or 1.4 million pigs. In September 2020 QAF announced that it was pursuing the sale of the business.

Riverlea’s farming activities were originally established in 1971 by the US agribusiness group Bunge, it was then purchased by QAF in 2001, the business was renamed Rivalea Australia in 2009.

The vertically-integrated business operates about 7600ha of farmland including a network of 25 piggeries in the Murray Valley and near Bendigo and in the Wimmera, carrying about 40,000 breeding sows. Contractors own another 18 of the Riverlea supply farms.

In a statement, JBS Australia CEO Brent Eastwood said JBS planned to invest significantly in the Rivalea business to expand opportunities for both fresh and value-added

Australian pork products in domestic and international markets.

“Our acquisition of Rivalea will enable us to expand into the breeding, growing, fattening and finishing of pigs, an area where JBS Australia does not currently operate,” Mr Eastwood said.

“We intend to grow the use of domestic pork in JBS Australia’s operations, particularly within our Primo business, through further value-adding and processing, while unlocking new opportunities for Australian pork in international export markets.”

Mr Eastwood said the purchase of the well-known company will also “strengthen our presence with consumers and customers.”

Across Australia JBS owns and operates 10 processing facilities and six feedlots, as well as Australia’s largest smallgoods manufacturer Primo Foods. The Brazilian based company also export to more than 50 countries, while also maintaining a significant market share in the domestic beef and lamb market.

“With the acquisition of Rivalea, JBS becomes a leader in pork processing in Australia,” JBS Global chief executive officer Gilberto Tomazoni said.

“We will add important brands to our portfolio to create strong conditions to accelerate the growth of the value-added and branded businesses in the country, in addition to strengthening our export platform.”

The acquisition is subject to regulatory approvals including the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) in Australia.