Overview of the Dairy Industry in Saudi Arabia

The Kingdom of Saudi Arabia has witnessed significant advancements in its dairy industry, primarily due to substantial investments, the adoption of cutting-edge technologies, and increasing domestic demand. This sector plays a critical role in the nation's economic development and aligns with the strategic goals of Saudi Vision 2030.

Dairy Cattle and Milk Production

Saudi Arabia maintains a robust dairy cattle population of approximately 600,000, underpinning its objectives of self-sufficiency. The country's annual milk production is around 2 million tonnes, reflecting effective farming techniques and robust government support.

Milk Processing and Dairy Production

Annually, Saudi Arabia processes about 1.8 million tonnes of milk to meet both local and international market demands. Cheese production amounts to approximately 200,000 tonnes per year, while milk powder and whey production is around 100,000 tonnes, catering to diverse consumer needs.

Key Enterprises

Almarai: A leading company offering a wide range of dairy products.
Al Safi Danone: A major player in the domestic and global dairy markets.
Nadec: A significant entity with 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 markets in the GCC, Middle East, and Africa. The country 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 dip 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.

Modified: 2025/05/18