Among the poultry producers in Saudi Arabia recently announcing a substantial expansion in capacity is Balady Poultry Trading Co.
It has recently released details of a five-year plan for growth, reported Zawya last week.
With an investment of 1.14 billion riyals (SAR; US$304 million), the firm will construct a new slaughterhouse and processing facility, and set up its own hatcheries.
Together with surplus cash resources, Balady said the funding will come from the Saudi government’s Agricultural Development Fund, and Sharia-compliant loans from commercial banking institutions.
The same source reports that Balady was founded in 2007, and that Almunajem Foods of Saudi Arabia holds 40% of its shares.
The latest investment by the firm will expand its production by 200 million birds per year, according to Arabian Gulf Business Insight.
Tanmiah Food’s agreement with Chinese partner
Last month, the Agricultural Development Company (ADC) agreed a strategic partnership for the construction of a further 100 modern broiler houses across Saudi Arabia.
ADC is a subsidiary of Tanmiah Food Company, and its new partner is the Chengdu Design and Research Institute of China.
For Tanmiah, this latest agreement forms a key element in its long-term strategy. This centers on increasing domestic poultry production in the Kingdom, and hence boosting national food security, in line with Saudi Arabia’s Vision 2030.
The new partnership covers construction work for the preparation of the new infrastructure, as well as equipment and the broiler houses.
Starting immediately, the project is expected to be completed by December of 2026. A long-term deferred payment plan has been agreed to cover the cost of SAR165 million.
Entaj prepares to list on Saudi stock market
Arabian Company for Agricultural and Industrial Investment (Entaj) has set the price range for its initial public offering (IPO) on the Parallel Market (Nomu) of the Saudi Exchange (Tadawul).
For the initial period February 9-13, this is SAR46-50 per share, after which a final offer price will be announced, according to Zawya.
Net proceeds from the IPO will be passed on to the selling shareholder, Arabian Agricultural Services Company (ARASCO).
In September of 2024, the Saudi regulator approved the application to register the firm’s share capital, and the IPO of nine million ordinary shares. This represents 30% of Entaj’s total issued share capital.
Market report: Saudi’s leading poultry companies
In 2023, two poultry meat producers in the Kingdom held a combined share of 46% of the fresh market. Seven firms accounted for an 87% share of the market by volume.
This is according to the prospectus linked to the Entaj IPO, reported Argaam recently.
The market leader is identified as Al Watania (with a 24.7% share), followed by Alamarai’s brand Al-Youm (21.2%), Tanmiah (13.0%), Fakieh (8.6%), Entaj (7.6%), Radwa (6.2%), and Golden Chicken (6.0%).
The Saudi Arabian market for frozen poultry meat is dominated by Brazil-based BRF, according to the same source. It accounts for an 85% share through its brands, Sadia and Doux.
Examining the egg market, there was a more fragmented picture, with more than 100 domestic players.
With a combined and almost equal near-38% share were Al Watania Poultry, and Rahima Eggs Farm. Making up around 50% of egg sales are a large number of small, unregulated, and store brands.
More on the Saudi Arabian poultry industry
Of the 10 largest poultry meat companies in the Middle East, five are based in Saudi Arabia, according to WATTPoultry.com’s Top Poultry Companies survey for 2023.
In that year, highest numbers of birds slaughtered by the Kingdom’s leading firms were as follows: Arab Company for Livestock Development (ACOLID; 662 million), Al Watania (312 million), Almarai Co. (250 million), Al Fakieh Poultry Farms (200 million), and Tanmiah Food Company (216 million).
Last month, it was announced that BRF Arabia Holding has acquired a 26% stake in the Addoha Poultry Company of Saudi Arabia.
Around the same time, it was reported that the owners of Al Watania Poultry were considering selling the company. As yet, no decision has been made public.
