Tanmiah Food Company, a Saudi Arabia-based supplier of meat and poultry products, has signed a memorandum of understanding (MoU) with European poultry producer MHP with an aim to boost Saudi poultry production.

The agreement represents the initial step to set up a joint venture (JV) with Tanmiah Food’s fully-owned subsidiary — Desert Hills for Veterinary Services Company and MHP SE, which is the Ukraine-based MHP’s parent company.

The MoU, which is backed by the Saudi Arabian government, and in accordance with the goals of food security in Saudi Vision 2030, lays out the tenets of the establishment of a joint venture, that aims to speed up efforts to eliminate the current gaps in production in the domestic poultry industry of Saudi Arabia.

Dr John Rich — MHP SE Executive Chairman said: “This memorandum represents an important milestone in MHP’s international strategy. I am confident that Tanmiah’s excellent operational track record in combination with MHP’s industry-leading poultry expertise can bring transformational results to the Kingdom on their way to achieving the food security goals of 2030 Vision.

“The steady deepening of the relationship between MHP and Saudi Arabia is an important part of our long-term commitment to the region, and we continue to seek opportunities to make the best use of our expertise to improve food security around the globe.”

The main focus of the joint venture will be on the development and operation of poultry breeding facilities. This includes the construction of a hatchery in Saudi Arabia to hatch 108 million hatching eggs per year.

According to the partners, the poultry joint venture will also be investing in feed milling facilities, with the goal of producing 137 000 tonnes of feed annually.

The initiatives will be supported financially by the Agriculture Development Fund of Saudi Arabia.

MHP is expected to offer an extensive array of knowledge throughout the value chain to take advantage of future opportunities and create most efficient facilities that are fully tailored to the local market.

Zulfiqar Hamadani — Tanmiah Food said: “The new partnership with MHP is yet another important step, demonstrating our resolve to contribute towards KSA’s poultry self-sufficiency whilst reinforcing our pioneering role in supporting the Kingdom’s food security and self-sufficiency objectives.

“In addition, as Europe’s largest poultry producer, MHP brings a wealth of industry expertise that will advance Tanmiah’s production capabilities and efficiencies, whilst enhancing our sustainability agenda.”

The formation of the joint venture is subject to the necessary regulatory approvals, including clearance of the General Authority for Competition of Saudi Arabia and any other relevant authorizations.

  John Rich, MHP, Poultry industry news, Saudi Arabia, Tanmiah Food Company, Ukraine, Zulfiqar Hamadani