Tanmiah Food Company is an established market business supplying poultry and other meat products. The company recently signed a memorandum of understanding with European poultry producer MHP. The agreement is the first step in the establishment of a joint venture between Desert Hills for Veterinary Services Company Ltd, a wholly-owned subsidiary of Tanmiah, and MHP SE. MHP is the parent company of the Ukraine-based international food and agricultural technology group.
The memorandum, backed by the Saudi Arabian government and setting out the principles for establishing a joint venture in line with the food security goals of Saudi Arabia’s Vision 2030, aims to accelerate efforts to close existing production gaps in the domestic poultry sector.
The main focus of the joint venture will be the development and operation of poultry breeding facilities, including the establishment of a greenfield hatchery in Saudi Arabia capable of incubating 108 million hatchery eggs per year. The company will also invest in a feed grinding facility with the goal of producing 137,000 tonnes of feed per year.
The initiatives will be primarily funded by the Saudi Arabian Development Fund for Agriculture. MHP will provide extensive industry expertise across the value chain to capture long-term opportunities and design state-of-the-art facilities fully adapted to local market conditions.
The establishment of the joint venture is still subject to the necessary regulatory approvals, including approval from the Saudi Competition Authority and other applicable authorizations.
Tanmiah CEO Zulfiqar Hamadani said: “As Europe’s largest poultry supplier, MHP has a wealth of industry expertise that will increase Tanmiah’s production capacity and efficiency while strengthening our sustainability agenda.”
Dr John Rich, Executive Chairman of MHP SE added: “This MoU is an important milestone in MHP’s international strategy. I am confident that the combination of Tanmiah’s excellent operational track record and MHP’s industry-leading poultry expertise can deliver the Kingdom’s 2030 Transformative results from the food security goals in our 2020 vision. The steady deepening of the relationship between the MHP and Saudi Arabia is an important part of our long-term commitment to the region, and we will continue to pursue opportunities to leverage our expertise to improve global level of food security. This agreement also brings the people of Saudi Arabia and Ukraine closer together.”
Tanmiah is on track to deliver on its growth plans, which include expanding production capacity for fresh poultry and further processed products, as well as developing new innovative products and services to meet the changing needs of domestic and foreign consumers.
Ahmed Bin Sharaf Osilan, Tanmiah Executive Board Member and Managing Director, said: “Our feed and animal health business segment has delivered solid performance over the past few quarters and we have ambitious plans to further expand the business, including All stakeholders, including shareholders, create sustainable long-term value. The significant investment in this joint venture will expand our overall production capacity while supporting local job creation and delivering on the Kingdom’s strategic vision for our industry.”
