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A subsidiary of the Saudi stock exchange listed Tanmiah Food Company and agrotech group MHP SE have signed a shareholder agreement to invest SAR 200 million ($53.3 million) to boost food security in Saudi Arabia.
The joint venture between Tanmiah’s Desert Hills Veterinary Services Company Limited (DHV) and European poultry meat producer MHP will focus on enhancing farming operations in the kingdom and improve self-sufficiency in poultry products. The partnership, with the capacity of more than 1 million parent stock, is expected to produce approximately 175 million hatching eggs annually, along with investing in a hatchery and a poultry feed mill.
DHV will hold the majority 55% stake in the joint venture, while MHP will hold the remaining.
The JV builds on a Memorandum of Understanding signed earlier this year between DHV and MHP to focus on developing and operating poultry breeding facilities. This includes establishing a greenfield hatchery in Saudi Arabia to hatch 108 million hatching eggs per annum and investing in feed milling facilities to produce 137 thousand tonnes of feed per annum.
Earlier this year, Tanmiah announced plans to invest SAR 4.5 billion by 2030 as it signed four MoUs to improve food security and production in Saudi Arabia. This included the launch of the ‘10miah farmers initiative’ with the country’s Agricultural Development Fund (ADF) to meet the Ministry of Environment, Water and Agriculture’s target of 80% local poultry meat production by 2025.
Tanmiah also has plans develop a framework to recycle agricultural waste from the poultry industry to increase greenery and support carbon reduction.
(Writing by Bindu Rai, editing by Daniel Luiz)