GLOBAL protein giant JBS will sell a 25 percent stake in its Australian and New Zealand operations to an Indonesian sovereign fund for the equivalent of A$3.57 billion, the company has announced.

The partnership aims to invest up to A$7.1 billion across Indonesia, Australia, New Zealand and other Southeast Asian markets.

Under a joint venture, JBS has formed a strategic partnership with Danantara Investment Management, the investment arm of Indonesia’s sovereign wealth fund.

In addition to the equity contribution, the joint venture is expected to provide incremental investment capacity of A$3.57b, bringing total available capital to up to A$7.1b to fund acquisitions, greenfield investments and other growth opportunities across Indonesia, Australia, New Zealand and Southeast Asia, a JBS statement said.

The region combines population scale, rising incomes, urbanisation and increasing protein consumption, it said.

Data from the Association of South East Asian Nations Secretariat shows that the region reached about 745 million people in 2024.

“The initiative is designed to expand JBS’s investment capacity, accelerate regional growth and leverage its Australian operations as a platform to scale in markets considered strategic for global protein consumption,” the statement said.

“Australia remains a core pillar of JBS’s geographic diversification, with strong export positioning and a key role in balancing JBS’s global results.”

JBS’s Australia is a diversified animal protein producer employing about 14,000 staff across 50 sites. The company is the nation’s largest beef and sheepmeat producer, with Northern Division operations including five strategically placed processing facilities as well as five feedlots across Queensland and New South Wales with access to an extensive network of quality cattle.

Southern Division operations include four beef and lamb processing facilities and a feedlot across New South Wales, Victoria, Tasmania and South Australia. JBS Pork Australia is one of the nation’s largest pork producers and processors. In 2021, the business expanded its operations into the breeding, growing fattening, and finishing of pigs through its acquisition of Rivalea, a leading vertically integrated pork producer and processor.

Other businesses in the Australian division include Primo Foods, Australia’s largest smallgoods manufacturer, salmon farming venture Huon Aquaculture, the Andrews Meat Industries value-added and meat cutting facility and JBS Carriers livestock freight division.

JBS global chief executive Gilberto Tomazoni said the company’s partnership with Danantara Indonesia marked an important step in its long-term growth strategy in Southeast Asia.

“As a cornerstone of the broader JBS global platform, our Australian and New Zealand footprint provides strong operations, world-class standards, and significant growth potential. Together with Danantara, we are well positioned to expand our presence across Indonesia and Southeast Asia, strengthen regional protein supply chains, broaden market access, and accelerate the development of Indonesia’s protein sector,” Mr Tomazoni said.

He said the move was aligned with JBS’s long-term strategy, focused on geographic diversification, branded and value-added products, sustainable growth and shareholder returns.

JBS Australia chief executive Brent Eastwood said the investment was a strong endorsement of JBS Australia’s proven track record in establishing and growing food businesses throughout Australia, NZ and around the world.

“Under the structure of the partnership, JBS Australia’s operations remain unchanged — existing management retains day-to-day control, and nothing changes for our 17,000 team members, customers and producer partners,” he said.

The transaction comes amid structural growth in global protein demand.

Projections from the OECD and the Food and Agriculture Organisation indicate that global meat consumption is expected to increase through 2034, with estimated growth of 21pc for poultry, 16pc for sheepmeat, 13pc for beef and 5pc for pork. The report also highlights population-growth countries such as Indonesia, the Philippines and Vietnam among those expected to drive demand.

Indonesia is also a key market in the global Halal food segment, which has become increasingly relevant for the protein industry.

“We are building a stronger platform to capture long-term growth in global protein consumption,” Gilberto Tomazoni said. “At the same time, we are creating the conditions to expand our presence in Asia, one of the industry’s most dynamic regions.”

Dantara said the investment would provide exposure to an established business with an experienced management team that had demonstrated sustained growth and resilience across industry cycles.

“This strategic partnership reflects Dantara Indonesia’s commitment to building collaborations with global partners that are aligned with our investment mandate,” Danantara chief investment officer Pandu Patria Sjahrir said in a statement.

The investment would leverage JBS’s operational expertise and global distribution network to support the long-term development of Indonesia’s protein industry.

The transaction is subject to required Australian regulatory approvals and customary conditions for transactions of this nature. The proposed sale is likely to be of little concern the the Foreign Investment Review board, being one foreign owner to another.

Indonesian investors have for some decades taken positions in the Australian beef supply chain, primarily through northern cattle production and live export. The JBS deal is the nation’s first investment in Australia’s processing sector. Prominent Indonesian investors in Australian cattle production in the past have included JAPFA/Santori’s ownership of Riveren and Inverway Stations in the Northern Territory; Bakrie Brothers extensive cattle investments in the NT; and Oceanic’s ownership of Kiana on the Barkly Tableland.

Senior JBS management has visited Indonesia a number of times in recent years, Beef Central has learned.

Strong financial performance

JBS’s Australian division has been a strong financial performer for the parent company over the past two years, as the US beef business faces extreme challenges from record high cattle prices due to herd contraction.

The Australian business has benefitted from strong global demand for red meat, despite rising livestock costs. In fiscal year 2025, the division reported record net sales of US$8.08 billion, up 21pc from a year earlier, while adjusted pre-tax earnings rose 38pc to $916 million. The division posted a pre-tax earnings margin of 11.3pc, supported by robust export and domestic demand that offset a 20pc increase in livestock costs.

Danantara Indonesia’s website says the investment arm was created to strengthen Indonesia’s economy by managing state-owned assets and investments more effectively. By consolidating the once fragmented assets, Danantara Indonesia transforms them into a unified, professionally managed investment platform, it says.

Main investment targets are infrastructure and utilities, real estate, financial services, food and agriculture, renewables and energy, minerals, digital infrastructure and healthcare.