Dairy Industry in Saudi Arabia

The Kingdom of Saudi Arabia has seen remarkable progress in its dairy industry, fueled by substantial investments and the adoption of cutting-edge technologies. This industry is a crucial component of the nation's economic strategy, aligning with the objectives of Saudi Vision 2030.

Dairy Cattle and Milk Production

Saudi Arabia boasts a robust dairy cattle population of approximately 600,000, supporting its goal of self-sufficiency. The country annually produces around 2 million tonnes of milk, a testament to its effective farming techniques and strong government support.

Milk Processing and Dairy Production

The country processes about 1.8 million tonnes of milk each year to satisfy both domestic and international market demands. Cheese production stands at approximately 200,000 tonnes annually, while milk powder and whey production is around 100,000 tonnes, catering to a diverse range of consumer needs.

Key Enterprises

Almarai: A leading company offering a wide range of dairy products.
Al Safi Danone: A major player in both domestic and global dairy markets.
Nadec: Known for a comprehensive dairy portfolio, including milk, cheese, and yogurt.

Dairy Farms

Almarai Dairy Farms: Known for advanced agricultural practices and high milk yield.
Al Safi Dairy Farms: Renowned for large-scale operations and skilled livestock management.
Al Rabie Dairy Farm: Focuses on delivering premium quality milk for various dairy offerings.

Export and Import

Saudi Arabia exports approximately 500,000 tonnes of dairy products annually, primarily to the GCC, Middle East, and Africa. The nation imports about 300,000 tonnes of dairy products, focusing on items less commonly produced domestically.

Significant Events and Developments

Implementation of cutting-edge milk production technologies to enhance yield and quality.
Government initiatives to bolster food security through localized dairy farming.
Expansion of leading dairy firms into international markets.
Collaborations with global dairy leaders for adopting best practices.
Launch of an ice cream plant in partnership with Shin-Line and Al-alameya groups.

Prominent companies like Almarai are actively pursuing acquisitions and diversifying into sectors such as seafood and red meat, aligning with Vision 2030. By 2024, whole fresh milk production is expected to rise to 2.9 million tonnes with an estimated import of 14,000 tonnes, reinforcing Saudi Arabia's status as a global dairy powerhouse.

Industry Market Mood

The Saudi Benchmark Index recently closed negatively at 11,096 points, with the Saudi Tadawul All Share Index showing a decline of 206.11 points or 1.82 percent. This reflects broader economic conditions impacting investor sentiment and market performance. The Saudia Dairy & Foodstuff Company (SADAFCO) reported impressive financial results for 2024, marking significant growth in sales and profits, alongside strategic innovations in product offerings and brand-building strategies.

Saudi Arabia is spearheading a major dairy industrial cluster in Al-Kharj, aiming to achieve regional leadership in dairy production. GEA has also inaugurated a new training center in Saudi Arabia, marking a strategic move toward localizing expertise in dairy technology.

Future Prospects

The Kingdom's F&B industry is projected to be worth USD $24.29 billion by the end of 2025, driven by innovation and strategic alignment with Vision 2030. A pioneering project in the Kingdom aims to create a scalable model for sustainable agriculture, capturing global attention as the world watches developments in this transformative industry.

Saudi Arabia is poised to expand its dairy exports globally, with a focus on entering new markets following a significant agreement with China. This move underscores aims to develop international markets for Saudi dairy products, enhancing their competitive presence worldwide. The Saudi dairy industry is not only eyeing China but also exploring opportunities in various Asian and African markets, seeking to establish a sustainable presence.

The Saudi Food and Drug Authority (SFDA) has taken action against food facilities, closing a frozen food factory and suspending production at other sites due to severe health violations.

Modified: 2025/08/10