MHP partners with Tanmiah Food Company to boost Saudi poultry production
MHP partners with Tanmiah Food Company, an established market leader in the provision of poultry and other meat products in Saudi Arabia, to establish a joint venture with its subsidiary Desert Hills for Veterinary Services Company Ltd. A relevant Memorandum of Understanding was signed on February 16.
Supported by the government of Saudi Arabia, and in line with the food security goals of Saudi Vision 2030, the memorandum sets out the principles of establishing a joint venture with the aim of accelerating efforts to close the existing production gap in KSA's domestic poultry sector.
The joint venture's primary focus will be developing and operating poultry breeding facilities and includes the establishment of a greenfield hatchery in Saudi Arabia to hatch 108 million hatching eggs per annum. It will also invest in feed milling facilities with the target of producing 137 thousand tonnes of feed per annum.
"The initiatives will be primarily funded by the Agriculture Development Fund of Saudi Arabia. MHP is set to provide a wide spectrum of industry expertise across the value chain to capture the long-term opportunities and design the best-in-class facilities fully adapted to local market conditions," the company's statement reads.
The establishment of the joint venture company remains subject to necessary regulatory approvals including the clearance by the General Authority for Competition of Saudi Arabia and other applicable authorizations.
Previously reported that the EBRD loans USD 100 mln to MHP to support operations in Ukraine, in particular sunflower processing.
