Saudi Food Development Co. to Invest 4.5 Billion Riyals

The Saudi Minister of Environment, Water and Agriculture, Eng. Abdul Rahman bin Abdul Mohsen Al-Fadhli, inaugurated new projects for the Food Development Company, one of the national poultry companies, through which he announced his plan of estimated investment in 4.5 billion riyals by 2030.

He did so during a ceremony held at the ministry headquarters in Riyadh, in the presence of the chairman of the board of directors of the Food Development Company, Amr Abdullah Al-Dabbagh, and the chairman of the board of directors of the “MHP” company, Dr By 2025 AD, and contribute to the achievement of food security and its sustainability in the Kingdom.

The Food Development Company has announced the signing of a Memorandum of Understanding with MHP, Europe’s leading poultry producer.

The agreement is the first step towards the creation of a joint venture venture between the wholly owned development company, Desert Hills Veterinary Services Ltd., and MHP SE, the parent company of the leading global food and agricultural technology group headquartered in Ukraine.

The main objectives of the joint venture are the development and operation of poultry farming facilities, including the establishment of a new hatchery in the Kingdom to hatch 108 million hatching eggs annually.

The forage milling plants will be invested with the aim of producing 137,000 tonnes of forage per year. These initiatives will be financed mainly by the Agricultural Development Fund in Saudi Arabia.

MHP is expected to bring a broad range of industry expertise throughout the value chain to capture long-term opportunities and design world-class facilities, which are fully in in line with local market conditions.

The constitution of the joint venture remains subject to necessary regulatory approvals, including approval by the General Competition Authority in the Kingdom of Saudi Arabia and other applicable licenses.

The memorandum period extends to 12 months from the date of signature of the agreement or until the signature of the partnership agreement.