Almarai Expands into Seafood and Red Meat, Boosting Food Security Ambitions

The company has unveiled expansion plans worth 18 billion riyals ($4.8 billion) to scale its operations. This includes establishing new facilities for domestic seafood production and beef and lamb processing, expected to become operational within two years, according to Chief Executive Officer Abdullah Albader.

Strengthening Poultry Production

Almarai has allocated $1.8 billion of the investment budget to increase poultry production by 50% to 70% by 2026. This expansion aims to raise annual processing capacity from 250 million birds to 450 million birds. The plan involves building new farms and upgrading existing ones to meet growing demand.

Supporting National Food Security

These initiatives align with Saudi Arabia’s broader efforts to reduce reliance on food imports, which currently account for approximately 80% of the country’s needs. Food security has become a pressing concern following global supply chain disruptions caused by the Covid-19 pandemic and Russia’s war in Ukraine. The strategy supports the Crown Prince Mohammed bin Salman’s Vision 2030, which seeks to diversify the economy beyond oil dependence.

“Our presence in dairy is important. However, we also believe that there are different categories that we can get into and serve our consumers,” said Albader in an interview. “Part of our strategy is to expand internationally.”

A Regional Dairy Leader

Founded in 1977, Almarai is valued at $15 billion and produces 4 million liters of milk daily, with an average yield of 40 liters per cow per day. Its products are distributed across seven countries in the Middle East region.

This expansion marks a significant step in Almarai’s evolution, leveraging its market leadership to venture into new sectors and contribute to Saudi Arabia’s long-term food security goals.