Saudi Arabia outlines next phase of flour mills privatization

SAUDI ARABIA – Saudi Grains Organization (SAGO), the state grain buyer has stated that it will begin the next phase of the sale of its flour mills within days in a privatization move. According to Reuters, privatization of the flour mills is part of Saudi Arabia’s government plans to overhaul its economy through diversification. Pre-qualified bidders are expected to begin the process of performing due diligence and present financial offers. Some of suitors for the deal include some of the world’s largest agribusiness firms, including Archer Daniels Midland Co and…

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GEA secures deal with NADEC to build new olive oil mill in Saudi Arabia

ASIA – GEA Group, leading supplier of technology for the food processing industry has secured a contract deal with the National Agricultural Development Company (NADEC) to build and supply the industrial equipment for a large olive oil mill in Saudi Arabia. GEA said the contract, valued at more than US$3.41 million (3 million euros) follows on from the successful completion of the first phase, as well as a collaboration with NADEC in the dairy products sector. The project is expected to enlarge the existing olive oil plant, built in 2016…

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Mars, Nestle and Unilever pledge to join Saudi Arabia’s Healthy Food Strategy

SAUDI ARABIA – Leading global food and beverage manufacturers; Mars, Nestle and Unilever, as well as importers have signed a voluntary pledge with the SFDA that includes reducing sugar, salt and fat content The Saudi Food and Drug Authority (SFDA) launched its Healthy Food Strategy at a ceremony last week, held under the patronage of His Excellency the Minister of Health and SFDA Chairman Dr. Tawfiq Bin Fawzan Al Rabiah. The Healthy Food Strategy is in line with the Kingdom’s Vision 2030, which aims to reduce sugar, salt, saturated and…

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GEA partners with Almarai Company to build a modern dairy factory in Saudi Arabia

SAUDI ARABIA – GEA, one of the largest suppliers of technology for the food processing industry, has worked with Almarai Company in Saudi Arabia to build the nation’s largest and most modern dairy processing facility. Almarai Company is the the largest dairy company in Saudi Arabia by market value. The new plant at Al Kharj includes multiple production lines for a wide range of milk and yoghurt products. GEA added that it has the capacity to process two million liters of milk a day, and that the project has already…

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Danone sells its Saudi Arabian joint venture to Saudi agric firm for US$143m

SAUDI ARABIA – Danone has agreed to sell its Al Safi-Danone Co. Ltd, the Saudi Arabian joint venture formed between Danone and Al Faisaliah in 2000 to Saudi Arabia’s National Agricultural Development Company (NADEC) for US$143m. According to the terms of the agreement, board members of Al Safi Danone (ASD) will hold approximately a 38.75% stake in NADEC. Talks that Saudi food firms NADEC and Al Safi Danone were in discussions for a possible merger emerged in October last year. The two signed a memorandum of understanding (MoU) under which NADEC…

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Saudi Arabia barley imports to decrease, says USDA

SAUDI ARABIA – According to USDA’s report based on Saudi Arabia Grains Organization’s (SAGO) past barley purchasing contracts, Saudi Arabia’s barley imports are likely to come down from 8.5 (official USDA estimate) to 8.0 million tonnes. The reduction in SAGO’s barley imports was mainly due to efficiency in managing storage and distribution of barely and an increase in the consumption of processed livestock feed. USDA reported that SAGO had purchased a total of 5.325 million tonnes of feed barley to cover consumption demand and strategic reserves until the end of…

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Cargill opens Saudi Arabia JV corn milling facility with Arasco

SAUDI ARABIA – American food and agriculture giant Cargill has opened its joint venture corn milling facility with Saudi Arabia’s Arasco, as it aims to meet the growing demand of the region’s food and beverage industry. The Middle East Food Solutions Company (MEFSCO Corn Milling Facility), which has been inaugurated in Al-Kharj, is Cargill’s first investment in Saudi Arabia. The two companies signed the MEFSCO deal in 2013. The MEFSCO facility was built to serve the Gulf Cooperation Countries (GCC), which include Saudi Arabia, the UAE, Kuwait, Oman, Bahrain and…

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Saudi dairy producer, Danone to hold merger talks

SAUDI ARABIA – The National Agricultural Development Company (NADEC) and Al Safi Danone Company (ASD) have made plans in a non-binding agreement to explore a possible merger. The shareholders of the privately held Al Safi Danone are expected to own 38.75% of NADEC at the end of the proposed transaction, according to a statement to the Saudi stock exchange. “The term of the MOU [Memorandum of Understanding] is for a period of six months. The parties have agreed on an exclusivity period during which they will conduct financial, commercial and…

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Ethiopia’s meat industry attracting new investors

ETHIOPIA – The Ethiopian meat sector has been steadily growing and domestic and foreign investors are showing interest, according to reports by the Ethiopian Meat and Dairy Industry Development Institute. Companies from China, Morocco, South Africa and India are currently interested in the meat-processing sector in the country. Frigorifico Allana, which is part of the largest agribusiness group in India, are some of the interested parties that are operating in Ethiopia, among others like Luna, Organic, Aksheker and Mojo Morden Export. The country received US$207 million from the planned US$266…

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