The two companies are to form a poultry and processed foods business in Indonesia.

The joint venture is BRF’s first steps in the Indonesian market, which it says with more than 250 million people is experiencing significant growth in the consumption of proteins.

Indofood is one of Indonesia’s largest company with operations in all phases of food manufacturing, from production of raw materials and their processing, to consumer products.

Its business operations include consumer branded products, flour milling, agribusiness, distribution, cultivation and processed vegetables.

In the joint venture, BRF said it will contribute with its knowledge in the protein-based food processing industry and Indofood will contribute with its market access in Indonesia, granting access to its extensive distribution network.

BRF and Indofood will each hold a 50 per cent ownership in the joint venture and, subject to the satisfaction of certain conditions they jointly plan to invest approximately $200 million in the next three years.

BRF said the deal is in line with BRF’s strategic plan for globalisation of the company by accessing local markets, strengthening BRF’s brands, distributing and expanding its product portfolio around the globe.