The Saudi Minister of Environment, Water and Agriculture, Eng. Abdul Rahman bin Abdul Mohsen Al-Fadhli, inaugurated new projects for the Food Development Company, one of the national poultry companies, through which it announced its plan to invest an estimated 4.5 billion riyals by 2030.
This came during a ceremony held at the Ministry’s headquarters in Riyadh, in the presence of the Chairman of the Board of Directors of the Food Development Company, Amr Abdullah Al-Dabbagh, and the Chairman of the Board of Directors of the “MHP” company, Dr. By 2025 AD, and contribute to achieving food security and its sustainability in the Kingdom.
The Food Development Company announced the signing of a memorandum of understanding with MHP, the leading European poultry producer.
The agreement is the first step in establishing a joint venture between the wholly owned development company, Desert Hills Veterinary Services Ltd., and MHP SE, the parent company of the leading global food and agricultural technology group headquartered in Ukraine.
The main objectives of the joint venture are to develop and operate poultry breeding facilities, including establishing a new hatchery in the Kingdom to hatch 108 million hatching eggs annually.
The investment will be made in forage milling facilities with the aim of producing 137,000 metric tons of forage annually. These initiatives will be mainly funded by the Agricultural Development Fund in Saudi Arabia.
MHP is expected to bring a wide range of industry expertise across the value chain to capture long-term opportunities and design best-in-class facilities, which are fully aligned with local market conditions.
The establishment of the joint venture remains subject to the necessary regulatory approvals including approval by the General Authority for Competition in the Kingdom of Saudi Arabia and other applicable licenses.
The period of the memorandum extends to 12 months from the date of signing the agreement or until the signing of the partners agreement.