Saudi Arabia's Dairy Industry Overview

The Kingdom of Saudi Arabia has embraced significant growth in its dairy sector, driven by strategic investments, cutting-edge technologies, and an increasing domestic demand. With forward-looking government policies, the industry has continued its expansion, contributing significantly to the nation's economy and aligning with Saudi Vision 2030.

Dairy Cattle and Milk Production

As of the latest data, Saudi Arabia holds a dairy cattle population of approximately 600,000 heads, efficiently supporting a self-sufficient dairy industry. Annually, the Kingdom produces around 2 million tonnes of milk. This impressive output results from advanced farming methodologies and substantial government support.

Milk Processing and Dairy Production

The milk processing volume in Saudi Arabia stands at about 1.8 million tonnes per year, catering to both home markets and international needs. Out of this, cheese production is around 200,000 tonnes annually, including various traditional and modern selections. Additionally, around 100,000 tonnes of milk powder and whey are produced each year, which strengthens local consumption and enhances export opportunities.

Key Enterprises

• Almarai: A leading entity renowned for its comprehensive dairy product line.
• Al Safi Danone: A pivotal industry figure, offering diverse dairy products for domestic and global markets.
• Nadec: A significant player with an extensive dairy portfolio including milk, cheese, and yogurt.

Dairy Farms

• Almarai Dairy Farms: Known for its advanced agricultural practices and high milk yield.
• Al Safi Dairy Farms: Recognized for large-scale operations and proficient livestock management.
• Al Rabie Dairy Farm: Focused on delivering premium quality milk for a variety of dairy offerings.

Export and Import

Saudi Arabia exports about 500,000 tonnes of dairy products annually, primarily targeting the GCC, Middle East, and African markets. The country imports roughly 300,000 tonnes of dairy products every year, mainly items less commonly produced domestically.

Significant Events

• Integration of state-of-the-art milk production technologies to enhance yield and quality.
• Government initiatives aimed at bolstering food security through localized dairy farming.
• Strategic expansion by leading dairy companies into the international marketplace.
• Collaborative ventures with global dairy giants to institute best practices.
• Inauguration of an ice cream plant in partnership with Shin-Line and Al-alameya groups.

Prominent players like Almarai are actively pursuing substantial acquisitions and diversification efforts, venturing into segments such as seafood and red meat. These efforts are part of a broader strategy aligning with Vision 2030. The Ministry of Environment, Water, and Agriculture stays committed to advocating for local consumption, ensuring a sustainable and thriving dairy sector.

By 2024, whole fresh milk production was expected to increase to 2.9 million tonnes, with an estimated import of 14,000 tonnes, further establishing Saudi Arabia as a significant force in the global dairy marketplace.

Industry Market Mood

Reflecting on the broader economic context, Saudi Arabia's Benchmark Index recently closed in red at 11,096. The Saudi Tadawul All Share Index marked a noticeable decline of 206.11 points or 1.82 percent, concluding at 11,096.65 points. This constitutes part of the overarching financial landscape impacting investor sentiment and market performance.

Saudia Dairy & Foodstuff Company (SADAFCO) reported impressive financial results for 2024, showcasing significant growth in sales and profits, coupled with strategic advancements in product innovation and brand development. Saudi Arabia has inaugurated a massive dairy industrial cluster in Al-Kharj, positioning itself to lead in regional dairy production.

Modified: 2025/05/05

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