Saudi Arabian companies invest in poultry to enhance food security

Tanmiah Food Company and MHP SE will join forces
calendar icon 14 September 2023
clock icon 2 minute read

In a recent press release, Tanmiah Food Company announced the signing of the shareholder agreement between its fully owned subsidiary, Desert Hills Veterinary Services Company (DHV), and MHP SE (MHP), the leading international food and agro-tech group. This partnership is set to significantly boost food security and self-sufficiency in poultry products in Saudi Arabia.

Building on the foundation laid by a memorandum of understanding signed earlier this year, the partnership will see DHV and MHP SE join forces to invest more than SAR 200 million ($53.32 million) in farming operations with the capacity of more than 1 million parent stock expected to produce approximately 175 million hatching eggs annually, a state-of-the-art hatchery and a poultry feed mill. DHV will hold a 55% stake, while MHP will have a 45% stake in the joint venture.

"Our collaboration with MHP signifies more than just a partnership; it represents our commitment to strengthen Saudi Arabia's food security framework," said Zulfiqar Hamadani, CEO of Tanmiah Food Company. "Utilising our local knowledge combined with global best practices, our portfolio of best-in-class products, services, and solutions demonstrates our commitment to our customers, partners, and the broader objectives of Vision 2030."

"Deepening our alliance with Tanmiah is a strategic pivot in MHP's global outreach," said John Rich, executive chairman of MHP SE. "This partnership is emblematic of our shared vision to integrate international expertise with local insights, ensuring that Saudi Arabia's food security targets are met. Our collective strengths will catalyze transformative advancements in the poultry sector, fostering innovation and setting new benchmarks for excellence. The formation of this joint venture is an important first step. We are committed to a long-term, fruitful relationship that will benefit our organizations, the entire Kingdom of Saudi Arabia and the region. We will continue pursuing strategic opportunities in the region, seeking to capitalise on our expertise." 

"Our partnership with MHP is a strategic step to delivering sustainable value to our stakeholders and making significant strides towards Vision 2030," added Ahmed Bin Sharaf Osilan, executive board member and managing director of Tanmiah Food Company. "As we are working towards boosting food security and self-reliance in Saudi Arabia, we are building facilities that are critical in the entire poultry ecosystem in Saudi Arabia, increasing non-oil GDP private sector contribution, local employment opportunities, and knowledge transfer."

The signing of the shareholder agreement is a decisive step in establishing the joint venture company after the necessary approvals, including clearance from the General Authority for Competition of Saudi Arabia and other relevant jurisdictions, are secured, the press release concluded. 

($1 = 3.75 Saudi Riyal)

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