Tanmiah Food Company and MHP Group join forces to boost Saudi poultry production

The joint venture will develop and operate poultry breeding facilities
calendar icon 17 February 2023
clock icon 3 minute read

Tanmiah Food Company, an established market leader in the provision of poultry and other meat products, today entered into a Memorandum of Understanding with MHP, the leading European producer of poultry. The agreement is the first step in establishing a joint venture between Tanmiah's wholly owned subsidiary, Desert Hills for Veterinary Services Company Ltd and MHP SE, the parent company of the leading international food & agrotech group headquartered in Ukraine.

The memorandum sets out the principles of establishing a joint venture with the aim of accelerating efforts to close the existing production gap in Saudi Arabia's domestic poultry sector. 

The primary focus of the joint venture will be to develop and operate poultry breeding facilities, including the establishment of a greenfield hatchery in Saudi Arabia to hatch 108 million hatching eggs per annum. It will also invest in feed milling facilities with the target of producing 137 thousand tonnes of feed per annum.

The initiatives will be primarily funded by the Agriculture Development Fund of Saudi Arabia. MHP is set to provide a wide spectrum of industry expertise across the value chain to capture the long-term opportunities and design the best-in-class facilities fully adapted to local market conditions.

"The new partnership with MHP is yet another important step, demonstrating our resolve to contribute towards KSA's poultry self-sufficiency whilst reinforcing our pioneering role in supporting the Kingdom's food security and self-sufficiency objectives," said Zulfiqar Hamadani, CEO of Tanmiah. "In addition, as Europe's largest poultry producer, MHP brings a wealth of industry expertise that will advance Tanmiah's production capabilities and efficiencies, whilst enhancing our sustainability agenda."

"This memorandum represents an important milestone in MHP's international strategy," said John Rich, MHP SE executive chairman. "I am confident that Tanmiah's excellent operational track record in combination with MHP's industry-leading poultry expertise can bring transformational results to the Kingdom on their way to achieving the food security goals of 2030 Vision. The steady deepening of the relationship between MHP and Saudi Arabia is an important part of our long-term commitment to the region, and we continue to seek opportunities to make the best use of our expertise to improve food security around the globe. The agreement also brings closer together the people of Saudi Arabia and Ukraine."

Tanmiah is on track to achieving its ambitious growth plans, which include expanding its production capacity for fresh poultry and further processed products and developing new and innovative products and services that cater to the changing demands of domestic and international consumers.

"Our feed and animal health segment has been delivering solid results over the past few quarters and we have ambitious plans to expand this business further, and generate sustainable long-term value to all our stakeholders, including our shareholders," said Ahmed Bin Sharaf Osilan, executive board member and managing director of Tanmiah. "The material investments into this joint venture, will result in an expansion of our overall capacity, whilst supporting local job creation and delivering on the Kingdom's strategic vision for our sector."

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