Saudi Arabia's Dairy Industry
The Kingdom of Saudi Arabia's dairy industry is a crucial part of the national economy, aligning with the strategic objectives outlined in Saudi Vision 2030. With significant investments and the adoption of advanced technologies, the industry is poised for sustainable growth and increased self-sufficiency.
Dairy Cattle and Milk Production
Saudi Arabia boasts a dairy cattle population of approximately 600,000, supporting its goals of self-sufficiency in dairy production. The nation produces around 2 million tonnes of milk annually, reflecting its modern farming practices and strong governmental backing.
Milk Processing and Dairy Production
Annually, Saudi Arabia processes about 1.8 million tonnes of milk to cater to both domestic and international demand. The country's cheese production stands at approximately 200,000 tonnes, while milk powder and whey production reach about 100,000 tonnes, meeting diverse consumer preferences.
Key Enterprises
Leading companies in the Saudi dairy market include Almarai, Al Safi Danone, and Nadec. These enterprises offer a wide range of dairy products, with Almarai and Al Safi Dairy Farms recognized for their advanced agricultural techniques and high milk yields.
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 nation imports about 300,000 tonnes of dairy products, focusing on those less commonly produced domestically.
Significant Events and Developments
The dairy sector has seen improvements in yield and quality due to 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 bolstered by strategic agreements with China and exploratory ventures into Asian and African markets. Arla Foods' introduction of Protein Pudding in Saudi Arabia has captured significant consumer interest.
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 rise to 2.9 million tonnes by 2024, underscoring Saudi Arabia's expanding influence as a global dairy powerhouse. Almarai leads the sector with a focus on food security, sustainability, and digital transformation.
Increased Barley Consumption
There has been an increase in barley consumption in Saudi Arabia, though it remains below the previous season's level. This trend may impact the feed sector and the broader agricultural landscape. Saudi Arabia is also a major importer of Russian veterinary vaccines, underscoring its commitment to high standards in animal health management.
International Collaboration
The Kingdom is a focal point for the expansion of French companies, with programs aimed at fostering consultations and commercial growth. These initiatives include sustainable development efforts aligned with Saudi Arabia's Vision 2030. The implementation of measures similar to the sugar tax has prompted producers to reformulate products and reduce sugar content to maintain competitiveness. Tetra Pak demonstrates its commitment to sustainability through regional partnerships in the UAE and Saudi Arabia.
Feed and Water Resource Management
Saudi Arabia relies heavily on imported feed for dairy production, with over 80% of the feed base, including alfalfa, grains, and protein concentrates, being imported from countries such as the U.S., Argentina, and Australia. To preserve water resources, the government has banned commercial cultivation of alfalfa.
Saudi Arabia is exploring a $1 billion investment partnership with Ukraine across five sectors, including agriculture and dairy. Saudi Arabia's initiative aims to enhance food security and increase dairy production in Ukraine. Projects discussed include localizing food and pharmaceutical production in Saudi Arabia.
Modified: 2026/01/22