Saudi Arabia's Dairy Industry: A Comprehensive Overview
The Kingdom of Saudi Arabia has seen remarkable progress in its dairy industry, spurred by substantial investments, the adoption of advanced technologies, and a growing domestic demand. This pivotal sector plays a crucial role in aligning with Saudi Vision 2030, significantly contributing to the country's economic development.
Dairy Cattle and Milk Production
Saudi Arabia maintains approximately 600,000 dairy cattle, supporting its goals of self-sufficiency. The annual milk production is around 2 million tonnes, reflecting effective advanced farming techniques and strong government support.
Milk Processing and Dairy Production
The Kingdom processes roughly 1.8 million tonnes of milk each year to meet both local and international demands. Cheese production stands at about 200,000 tonnes annually, while the production of milk powder and whey amounts to approximately 100,000 tonnes, catering to diverse market needs.
Key Enterprises
- Almarai: A leading company offering a broad range of dairy products.
- Al Safi Danone: A major player that offers diverse products for both domestic and global dairy markets.
- Nadec: A significant entity with an extensive 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 around 500,000 tonnes of dairy products annually, targeting markets in the GCC, Middle East, and Africa. The country imports about 300,000 tonnes of dairy products, primarily focusing on goods less commonly produced domestically.
Significant Events
- 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. The Ministry of Environment, Water, and Agriculture is committed to enhancing local consumption and ensuring a sustainable, thriving dairy sector. 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 global dairy powerhouse status.
Industry Market Mood
The Saudi Benchmark Index recently closed negatively at 11,096, with the Saudi Tadawul All Share Index showing a dip of 206.11 points or 1.82 percent, closing at 11,096.65 points. This reflects broader economic conditions and their impact on 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. Furthermore, 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.
Saudi Arabia'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 undergoing a real transformation and opening up on many levels, with the dairy sector led by Almarai, and strong contributions from Nadec and Saudia.
Modified: 2025/05/18
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