MHP SE partners with Desert Hills Veterinary Services in poultry joint venture

Ukraine-based international food and agrotech group MHP SE has signed a shareholder agreement with Desert Hills Veterinary Services Company Limited (DHV), a subsidiary of Saudi Arabia’s Tanmiah Food Company. The deal, valued at over SAR 200 million, aims to expand MHP SE’s international footprint and bolster Saudi Arabia’s food security in the poultry sector.

Shareholder Agreement Signed in High-Profile Ceremony in Jeddah

The formal signing ceremony was held in Jeddah on September 7, 2023. Attendees included Sheikh Amr Al-Dabbagh, Chairman of the Board of Tanmiah, Saudi Government officials, and His Excellency Anatolii Petrenko, Ambassador of Ukraine. MHP SE was represented by Executive Chair of the Board Dr. John Rich and MENA Managing Director Eugene Levterov.

Building on Earlier MOU, Venture to Produce 175 Million Hatching Eggs Annually

The partnership leverages a Memorandum of Understanding signed earlier this year and will result in an investment of more than SAR 200 million in poultry farming operations. These operations are expected to have the capacity to produce approximately 175 million hatching eggs annually. DHV will hold a 55% stake, while MHP will own 45% of the joint venture.

Dr. John Rich Comments on Strategic Alignment and Future Prospects

Dr. John Rich, Executive Chair of the Board of MHP SE, stated, “Deepening our alliance with Tanmiah is a strategic pivot in MHP’s global outreach. This partnership is emblematic of our shared vision to integrate international expertise with local insights, ensuring that Saudi Arabia’s food security targets are met.”

Tanmiah Food Company’s Executives Highlight Vision 2030 Goals

Zulfiqar Hamadani, CEO of Tanmiah Food Company, and Ahmed Bin Sharaf Osilan, Executive Board Member and Managing Director, both emphasized the partnership’s alignment with Saudi Arabia’s Vision 2030 objectives, focusing on food security and non-oil GDP growth.

Regulatory Approvals Awaited for Joint Venture Formation

The signed shareholder agreement marks a significant step toward the formation of the joint venture, pending regulatory approvals from the General Authority for Competition of Saudi Arabia and other relevant authorities.