Saudi Minister Of Environment Sponsors $150 Million Investment In Poultry Production With Brazil

Minister of Environment, Water and Agriculture Abdulrahman Alfadley recently oversaw the signing of a significant partnership agreement at the ministry's headquarters. This event was attended by Amr Al-Dabbagh, Chairman of the Board of Tanmiah Food Company. The agreement was established between Tanmiah Food Company, a prominent Saudi food enterprise, and Vibra Agroindustrial S/A from Brazil, known for its expertise in poultry production.

The collaboration is designed to boost self-sufficiency in poultry meat and products within Saudi Arabia. It aligns with the objectives of Saudi Vision 2030 to enhance food security. The agreement involves an investment exceeding $150 million, with Vibra contributing to Tanmiah’s further processing operations. This investment will expand production capacity using locally raised poultry.

In the first phase of this strategic partnership, Vibra will focus on Tanmiah’s further processing business. They plan to construct a specialized facility dedicated to expanding poultry production and processing with locally sourced chickens. This initiative aims to increase operational efficiency and strengthen their global position in the poultry supply chain.

The second phase involves both companies exploring potential acquisitions in Brazil's poultry processing sector. This step aims to broaden their processing capabilities for both poultry and beef, thereby improving supply chain efficiency. Such expansion efforts are crucial for enhancing international partnerships in the agri-food sector.

The Ministry highlighted that this agreement seeks to bolster food security efforts while increasing self-sufficiency in poultry meat and products within Saudi Arabia. By investing jointly in primary poultry processing operations in Brazil, both companies aim to enhance operational efficiency and strengthen their global supply chain presence.

This strategic move is part of a broader effort to improve the food supply chain and support food security initiatives. By expanding processing capabilities, the partnership aims to ensure a steady supply of high-quality poultry products, contributing significantly to Saudi Arabia's food security goals.

This collaboration represents a significant step towards achieving greater self-reliance in food production within the Kingdom. It underscores the commitment of both companies to contribute positively to Saudi Arabia's agricultural sector while fostering international cooperation.

With inputs from SPA