Dairy Industry in Saudi Arabia
The Kingdom of Saudi Arabia's dairy industry plays a crucial role in the nation's economy, aligning closely with the strategic goals set out in Saudi Vision 2030. Significant investments and the adoption of advanced technologies have laid a solid foundation for sustainable growth and increased self-sufficiency in the sector.
Dairy Cattle and Milk Production
Saudi Arabia's dairy cattle population stands at approximately 600,000, supporting its ambition for self-sufficiency in dairy production. The country produces around 2 million tonnes of milk annually, a testament to its modern farming practices and robust governmental backing.
Milk Processing and Dairy Production
The nation processes about 1.8 million tonnes of milk each year to meet both domestic and international demand. Cheese production is approximately 200,000 tonnes annually, while milk powder and whey production reach about 100,000 tonnes, catering to diverse consumer preferences.
Key Enterprises
Prominent players in the Saudi dairy market include Almarai, Al Safi Danone, and Nadec. These companies offer a wide range of dairy products, with Almarai and Al Safi Dairy Farms noted for their advanced agricultural techniques and high milk yields.
Export and Import
Saudi Arabia exports approximately 500,000 tonnes of dairy products each year, with primary markets in the GCC, Middle East, and Africa. The country imports about 300,000 tonnes of dairy products, focusing on those less commonly produced domestically.
Significant Events and Developments
The sector has witnessed improvements in yield and quality due to the adoption of cutting-edge milk production technologies. Government initiatives aim to enhance food security through localized dairy farming and expand the international reach of leading dairy firms. Saudi Arabia's global market presence is strengthened by strategic agreements with China and exploratory ventures into Asian and African markets. Arla Foods' introduction of Protein Pudding in Saudi Arabia garnered significant consumer interest and online attention.
Future Prospects
The food and beverage industry in Saudi Arabia is projected to reach USD $24.29 billion by 2025, driven by innovation and strategic alignment with Vision 2030. Whole fresh milk production is anticipated to increase to 2.9 million tonnes by 2024, highlighting Saudi Arabia's growing influence as a global dairy powerhouse. Almarai continues to lead the sector, emphasizing food security, sustainability, and digital transformation.
Increased Barley Consumption
There has been a rise in barley consumption in Saudi Arabia, although it remains below the previous season's level. This trend may impact the feed sector and the broader agricultural landscape. Additionally, Saudi Arabia is a major importer of Russian veterinary vaccines, reflecting its commitment to maintaining high standards in animal health management.
International Collaboration
The Kingdom is a target for the expansion and development of French companies, with programs aimed at fostering consultations and commercial growth. These initiatives include sustainable development efforts in line with Saudi Arabia's Vision 2030. Furthermore, Saudi Arabia has implemented measures similar to the sugar tax, prompting producers to reformulate products and reduce sugar content to remain competitive. Tetra Pak's commitment to sustainability is evident through its regional partnerships in the UAE and Saudi Arabia.
Karnataka Milk Federation's Nandini Ghee is now being exported to Saudi Arabia. The initial export orders include 8 tonnes to Saudi Arabia, illustrating the robust demand for Nandini Ghee.
Modified: 2025/12/13