Saudi and Ukrainian
companies to invest in poultry products
Tanmiah Food Company
and Ukraine's MHP are set to co-invest over SAR 200 million in farming
operations with a parent stock capacity exceeding one million, marking a
significant move to enhance Saudi Arabia's poultry value chain.
In this venture,
Tanmiah's subsidiary, Desert Hills Veterinary Services Company (DHV), will hold
a 55 percent stake, while MHP will own the remaining 45 percent. The parent
stock is anticipated to produce approximately 175 million hatching eggs
annually.
Red
Sea Global to enhance Saudi agriculture economy
The partnership aims
to bolster food security and self-sufficiency in poultry products within Saudi
Arabia, aligning with the broader goals of Vision 2030, according to Zulfiqar
Hamadani, CEO of Tanmiah Food Company. Dr. John Rich, Executive Chairman of MHP,
emphasized that the collaboration would drive transformative advancements in
the poultry sector, promoting innovation and setting new standards for
excellence.
The agreement follows
regulatory approvals, including clearance from the General Authority for
Competition of Saudi Arabia, marking a decisive step in establishing the
venture company.
Tanmiah reported SAR
983.1 million in half-year revenues, representing a 26.6 percent YoY increase.
Fresh poultry sales, constituting 84 percent of total revenues, grew by 22.2
percent YoY in H1 2023 to SAR 825.7 million. Saudi Arabia has plans to invest
$20 billion by 2035 to strengthen the domestic food sector and ensure food
security.
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To support food
security goals and agricultural sector development, the Agricultural
Development Fund in Saudi Arabia approved numerous credit facilities worth over
SAR 4.2 billion in H1 2023.
Tanmiah's business
model positions it for growth at the local, regional, and global levels,
benefiting from favorable market trends.
In the previous year,
US meat company Tyson Foods agreed to invest $70 million in Tanmiah in exchange
for stakes in subsidiaries operating chicken hatcheries, feed mills, and
poultry-processing plants serving several countries, including Saudi Arabia,
Kuwait, Bahrain, the UAE, Oman, Lebanon, and Jordan. Tanmiah also partnered
with the Public Investment Fund's Halal Products Development Company to boost
and localize the halal products industry in Saudi Arabia and the Middle East
region.
Source: https://gulfbusiness.com/
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