September 13, 2023

Tanmiah Food Company forms joint venture with MHP SE to boost Saudi poultry production

Tanmiah Food Company, through its subsidiary Desert Hills Veterinary Services Company (DHV), has entered into a partnership with London-listed agro-tech firm MHP SE, which aims to enhance Saudi Arabia's food security and self-sufficiency in poultry products. Zawya reported.

The joint venture will see an investment exceeding SAR 200 million (~US$53.32 million: SAR 1 = US$0.27) directed towards farming operations. The project will encompass the capacity to rear over one million parent stock, expected to yield 175 million hatching eggs annually. Additionally, a state-of-the-art hatchery and a poultry feed mill will be established as part of the venture.

DHV will retain a majority share of 55%, while MHP will hold the remaining 45% stake in this mutually beneficial endeavour.

The successful formation of the new company hinges upon obtaining the requisite regulatory approvals, including the nod from the General Authority for Competition, along with other necessary regulatory clearances.

This strategic partnership aligns with Tanmiah's commitment to invest SAR 4.5 billion (~US$1.19 billion) by 2030, following the signing of four memorandums of understanding earlier this year.

-      Zawya