Saudi Arabia's Almarai Expands Into Seafood, Meat Amid Push for Food Security
Source: DairyNews.today
Almarai Co., Saudi Arabia’s largest dairy producer, is diversifying its portfolio with significant investments in seafood and red meat production as the Kingdom intensifies efforts to achieve food self-reliance.
The company announced a strategic investment plan of 18 billion riyals ($4.8 billion) earlier this year, aimed at broadening its operations and scaling new categories. This includes constructing facilities for domestic seafood and beef and lamb production, expected to become operational within two years, CEO Abdullah Albader revealed.
Ambitious Poultry Expansion
As part of its growth strategy, Almarai has also allocated $1.8 billion to expand poultry production by 50% to 70% by 2026. The company aims to increase annual processing capacity to 450 million birds, up from 250 million currently, through new farm establishments and upgrades to existing facilities.
Food Security Prioritized
The expansion aligns with Saudi Arabia’s broader efforts to reduce its reliance on food imports, which currently constitute approximately 80% of national consumption. The Covid-19 pandemic and disruptions from Russia's invasion of Ukraine have underscored the need to enhance domestic food security. This initiative is a cornerstone of Crown Prince Mohammed bin Salman’s Vision 2030, a strategic framework to diversify the Saudi economy beyond oil.
“Our dairy business remains a key focus, but we see significant potential in other food categories to better serve our consumers,” Albader said in an interview, emphasizing Almarai’s commitment to international expansion alongside domestic growth.
A Market Leader’s Legacy
Founded in 1977, Almarai has grown into a regional leader with a market capitalization of $15 billion. The company produces 4 million liters of milk daily, with each cow averaging 40 liters per day, according to its website. Its products reach consumers across seven countries in the Middle East.
With its ambitious investments, Almarai is positioning itself as a key player in Saudi Arabia’s drive to build a robust and sustainable food system, reinforcing the nation’s food security in a rapidly evolving global landscape.
Ambitious Poultry Expansion
As part of its growth strategy, Almarai has also allocated $1.8 billion to expand poultry production by 50% to 70% by 2026. The company aims to increase annual processing capacity to 450 million birds, up from 250 million currently, through new farm establishments and upgrades to existing facilities.
Food Security Prioritized
The expansion aligns with Saudi Arabia’s broader efforts to reduce its reliance on food imports, which currently constitute approximately 80% of national consumption. The Covid-19 pandemic and disruptions from Russia's invasion of Ukraine have underscored the need to enhance domestic food security. This initiative is a cornerstone of Crown Prince Mohammed bin Salman’s Vision 2030, a strategic framework to diversify the Saudi economy beyond oil.
“Our dairy business remains a key focus, but we see significant potential in other food categories to better serve our consumers,” Albader said in an interview, emphasizing Almarai’s commitment to international expansion alongside domestic growth.
A Market Leader’s Legacy
Founded in 1977, Almarai has grown into a regional leader with a market capitalization of $15 billion. The company produces 4 million liters of milk daily, with each cow averaging 40 liters per day, according to its website. Its products reach consumers across seven countries in the Middle East.
With its ambitious investments, Almarai is positioning itself as a key player in Saudi Arabia’s drive to build a robust and sustainable food system, reinforcing the nation’s food security in a rapidly evolving global landscape.
