November 29, 2022
Saudi poultry firm looks to expand poultry business to double market share
Abdullah Nasser Al Bader, chief executive officer of Saudi Arabian food and beverages manufacturing firm Almarai Co, said the company is planning to expand its poultry business to double its market share in the country, Arab News reported.
He said the poultry segment was one of those crucial investments the company made over the past 13 years, and Almarai's strategy has always been to expand its current businesses into new segments.
The CEO also said that Almarai's poultry operation has been profitable despite facing difficulties in the sector, such as bird deaths.
Almarai, one of Saudi Arabia's largest dairy firms, entered the poultry industry in 2009 after purchasing Hail Agricultural Development Co.
Al Bader confirmed Almarai's solid financial stability and added that the company's investments are based on continuity and sustainability.
On November 26, Almarai announced plans to invest SAR 5 billion (~US$1.3 billion; SAR 1 = US$0.27) to increase poultry production in Al-Shamli Governorate, Hail Region.
This is part of Almarai's plan to develop its core business lines to their full potential throughout the Gulf Cooperation Council.
The company's new investments include building a new plant and farms in Hail with the intention of increasing poultry production by more than 150 million birds annually.
With these investments, Almarai hopes to surpass its current 225 million bird production rate and take the lead among poultry producers in the region.
Al Bader added that these investments will also help to create jobs for 4,000 people and will support the creation of regional content.
In a bourse filing from earlier in June, the company stated that it intended to make an initial investment of SAR 252 million (~US$67 million) to signal its entry into the seafood industry. This investment plan will broaden Almarai's product line and advance the cause of food security.
- Arab News
