Saudi Arabia tackles global food insecurity by investing in innovation
The food and beverage sector ranks second among manufacturing facilities across Saudi Arabia, totaling 1,320 plants by the end of 2022, Vice Minister of Industry and Mineral Resources, Osama bin Abdulaziz Al-Zamil, said during a ceremony held by Almarai Co.
The sector is among the most promising ones and attracts many qualitative projects within the National Industry Strategy (NIS) framework, he added. Al-Zami said the food industry is one of the strategy’s priority sectors, given its importance in achieving food security in the Kingdom.
The sector also plays a pivotal role in developing local content, supporting local supply chains, and developing Saudi non-oil exports, the vice minister said.
Source: argaam.com
Factories in Saudi Arabia’s food sector reached 1,320 in 2022
RIYADH: Saudi Arabia aims to tackle global food insecurity by supporting the government’s investment in innovation, revealed a top official of the Ministry of Economy and Planning.
Hosam Rowaihy, the head of the Decision Support Unit and Senior Advisor to the Minister of Economy and Planning, addressed this at the national launch of the Food Ecosystems in Arid Climates Challenge at King Abdullah University of Science and Technology. Run by UpLink, an open innovation platform of the World Economic Forum, the challenge is a global call for food entrepreneurs who are generating innovative solutions to achieve food security amidst intensified droughts and desertification.
“The Ministry of Economy and Planning’s partnership with UpLink is an opportunity to create and support a network of innovators that will build unique solutions,” said Rowaihy. The Kingdom’s ministry signed a cooperation agreement with UpLink in May of 2022 to “expand the scope of the most innovative solutions which address sustainable development challenges,” the ministry said at the time.
Rowaihy noted that as the pandemic takes a toll on global hunger, the Kingdom redirects its focus on tackling the issue of food insecurity and malnutrition around the world. “As of 2022, 828 million people are affected by hunger worldwide, 2.3 billion are food insecure, and 3.1 billion people cannot afford a healthy diet,” said Rowaihy. Given Saudi Arabia’s climate context and the challenges that come with it, he stressed that the Kingdom holds its position as a major innovation accelerator, dedicating resources to empower and support entrepreneurs who are determined to tackle the global challenge of food insecurity.
For the world to reach Zero Hunger, Rowaihy pointed out that “innovative approaches must be implemented along with the investment in today’s youth, who are able to bring novel solutions with agility and speed.” Meanwhile, the Minister of Environment, Water and Agriculture Abdulrahman Al-Fadley reviewed the latest developments in the food sector. This comes as Saudi Arabia’s private sector also has a vital role in providing the stocks and availability of supply in the markets, which led to overcoming the implications of the Russian-Ukrainian crisis on global food markets. Al-Fadley addressed the private sector’s role in developing local stocks of feed inputs like maize, soybeans and barley, as well as the sector’s stimulation mechanisms. The minister underlined the vitality of consistency and cooperation between the involved entities to ensure the continuance of availability and quality of food commodities.
Source: ARAB NEWS
Arasco, Neom and Cargill Announce Plans to Promote the Sustainable Development of Saudi Aquaculture
- February 14, 2023
- 1:41 pm
Arasco, Neom and Cargill Announce Plans to Promote the Sustainable Development of Saudi Aquaculture
The Arabian Agricultural Services Company (ARASCO) signed an agreement with NEOM, the region in northwest of Saudi Arabia focused on innovation and sustainability, and Cargill, one of the world’s leading agribusiness companies, to explore how they can work together to support the sustainable expansion of the Saudi aquacultural sector and its aspiration to achieve self-sufficiency in aquaculture protein demand by 2030 in an environmentally friendly manner.
Nasser bin Abdulaziz Abanmi, CEO of ARASCO, Dr. Juan Carlos Motamayor, Head of NEOM Food and Helen Ziv-douki, Global President of Cargill’s Aqua Nutrition business, were present in Riyadh for the signing of the memorandum of understanding (MoU) in December 2022. The three parties will work together to explore and scale up sustainable ways to meet rising domestic demand for aquaculture, including through research and development into more sustainable feed sources.
“Aquaculture began in Saudi nearly 35 years ago, now it became one of the highest exports in the KSA, and as per the statistics, aquaculture is one of the fastest-growing food production sectors in the world, and in Saudi we enjoy abundant natural resources along the west coastline (2,600 KM Long) where aquaculture can be a great potential opportunity to serve food security in Saudi, said Nasser A. Abanmi, ARASCO CEO. Additionally, we need aquaculture to help feed the world. By 2050, there will 9.7 billion people on the planet, according to the UN, and this growth will put huge pressure on food security and production in general, and fish in particular which is aligned with ARASCO’s mission to support food security in a sustainable way within the Kingdom of Saudi Arabia, and in the Middle East. We look forward to working with NEOM and Cargill in this noble mission”.
“Aquaculture offers the most sustainable way to produce protein in terms of water consumption and carbon emissions to arid countries such as Saudi Arabia. This agreement will ultimately lead to addressing the need to replace fishmeal by more sustainable fish feed” said Dr. Juan Carlos Motamayor, Head of NEOM Food. “Additionally, it aligns with NEOM’s efforts to facilitate the production and supply of sustainable seafood while protecting the marine environment. We look forward to working with ARASCO and Cargill to transform the seafood-production industry and minimize the environmental impact.”
“Providing sustainable protein to feed the growing population requires all of us working together,” said Helen Ziv-douki, Global President of Cargill’s Aqua Nutrition business. “We appreciate the opportunity to collaborate with ARASCO and NEOM with the aim of producing the seafood the world needs while minimizing its impact on the planet.”
This initiative is consistent with the plans and programs for the development and diversification of the Saudi economy under the Kingdom’s Vision 2030, which includes achieving self-sufficiency in industries including food, and developing export markets where possible.
With 40 years of experience, ARASCO is the largest manufacturer of animal feed in the Middle East with three business segments that address food security.
Source: NEOM.com
PIF and Aero Farms Sign Joint Venture Agreement to Build Indoor Vertical Farms in Saudi Arabia and the Wider MENA Region
- February 2, 2023
- 9:16 am
PIF and Aero Farms Sign Joint Venture Agreement to Build Indoor Vertical Farms in Saudi Arabia and the Wider MENA Region
The Public Investment Fund (PIF) today signed a joint venture agreement with Aero Farms, a US-based commercial market leader in vertical farming, to establish a company in Riyadh to build and operate indoor vertical farms in Saudi Arabia and the wider Middle East and North Africa (MENA) region.
The agreement will optimize the utilization of natural resources, including water and agricultural lands, through the implementation of indoor vertical farming, with no need for arable land, resulting in significantly higher yields and using up to 95% less water versus traditional field farming.
The partnership is expected to enable sustainable, local sourcing of high-quality crops all year round, grown using Aero Farms’ proprietary smart agriculture technology (“AgTech”) platform, which helps solve broader supply chain needs in the industry. The joint venture plans to build and operate several farms across the region in the next few years. The first farm in Saudi Arabia, which is expected to be the largest indoor vertical farm of its kind in the MENA region, will have an annual production capacity of up to 1.1 million kgs of agricultural crops.
The partnership aligns with PIF’s strategy, which focuses on developing and enabling the capabilities of key sectors, including food and agriculture, which will contribute to improving trade balance, localize technologies, develop industries and the overall growth and diversification of the Saudi economy. PIF is investing to localize new agricultural technologies that can benefit the local private sector, expanding its market reach and positioning Saudi Arabia as a leader in vertical farming.
Majed AlAssaf, Head of Consumer Goods and Retail, MENA Investments Division at PIF, said: “The agreement with Aero Farms will lead to the establishment of indoor vertical farms in Saudi Arabia and the wider MENA region, increasing regional reliance on locally produced, high-quality crops grown in a sustainable way using the latest technologies. PIF is enabling the growth of the food and agriculture sector and localizing technology that can benefit private sector industry participants.”
David Rosenberg, Co-Founder and CEO of Aero Farms, commented: “Our mission is to grow the best plants possible for the betterment of humanity, and we created Aero Farms to help solve the greatest agriculture challenges and increase food resiliency around the world. We are excited to partner with PIF to build our first large-scale commercial farm in Saudi Arabia, where the growing conditions are challenging with limited access to fresh water and arable land, and we envision building together smart indoor vertical farms throughout the broader MENA region.” Aero Farms has a strong track record of creating large-scale commercial farms with a reputation for high quality and consistency of production, along with experienced management, and an advanced technology and R&D team.
Source: spa.gov.sa
Almarai launches investments worth 1.2 billion SR to develop hatchery production facilities in Sakaka, Al-Jouf region
- December 22, 2022
- 7:53 am
Almarai launches investments worth 1.2 billion SR to develop hatchery production facilities in Sakaka, Al-Jouf region
Almarai Company announced, on Monday, December 05, 2022, an investment of 1.2 billion SR in Sakaka Governorate in the Al-Jouf region to develop poultry hatchery production facility.
This came at a signing ceremony of an agreement between Almarai Company and the Ministry of Environment, Water and Agriculture under the patronage of HRH Prince Faisal bin Nawaf bin Abdulaziz, Governor of Al-Jouf Region, and in the presence of His Excellency Eng. Mohammed bin Saud Al-Kabeer, and the CEO of Almarai Company, Abdullah bin Nasser Al-Badr.
“The care that the government of the Custodian of the Two Holy Mosques and his trustworthy Crown Prince attaches to the private sector has directly contributed to the development of this sector to contribute effectively to achieving the goals of the Kingdom’s Vision 2030. To enhance food security in the Kingdom.” the Chairman of the Board of Directors of Almarai Company, His Highness Prince Nayef bin Sultan bin Muhammad bin Saud Al Kabeer, said.
Prince Nayef added that the investments include the development of hatchery production facilities to enhance the vertical integration of poultry supplies and will provide 720 new job opportunities, indicating that the poultry production facilities to be established through these investments in the Al-Jouf region are one of several facilities that will be distributed in several of the areas of the Kingdom to ensure that fresh chicken reaches the final consumer in record time, in addition to reducing the risks of relying on only one site for production, as this meets the goals of biosecurity for Almarai Company.
It is noteworthy that Almarai Company launched a similar investment a few days ago in the Hail region, at a value of 4.5 billion Saudi riyals, to expand poultry production, and this comes as part of an investment plan for this vital sector that was announced in May 2021, estimated at 6.6 billion riyals to develop poultry production, and the presence in sites different geography in Saudi Arabia to enhance the vital security of the sector, in addition to distributing the company’s contributions in economic development to the various regions of the Kingdom.
Source: almarai.com
Saudi Agricultural Investment Financing Witnesses 400 Percent Growth
Saudi Arabia’s Minister of Environment, Water and Agriculture, Eng. Abdul Rahman bin Abdul Mohsen Al-Fadhli, emphasized the success of the Kingdom’s experience in the Sustainable Agricultural Rural Development Program, which was launched by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz.
In remarks during his participation in the meeting of the ministers of Agriculture of the G20 in the Italian city of Florence, Fadhli said that 12 billion riyals (USD 3.2 billion) were allocated to support small farmers.
The minister noted that agricultural investments in Saudi Arabia, funded by the Agricultural Development Fund, have grown over the past four years by about 400 percent, which has contributed to building a resilient and sustainable food system.
He added that the Kingdom has turned to modern technical methods in the field of agricultural extension, with the aim of reaching the largest segment of farmers in a faster and more efficient manner.
Meanwhile, the Chamber of Commerce and Industry in Hail (Northern Saudi Arabia), represented by the Agriculture and Food Committee, held a meeting in which it discussed the most important challenges facing farmers and agricultural marketing.
The meeting was held in the presence of specialized members and representatives of the Agricultural Development Fund, the Ministry of Environment, the Municipality of Hail, the Saudi Grains Organization, and the Ministry of Tourism.
Discussions during the meeting focused on the mechanism of establishing a farmer’s market, in addition to the agricultural crop festivals in the region – projects that were recently approved on the main platform of the Ministry of Environment, Water and Agriculture, and presented to investors and businessmen.
Source: Asharq Al-Awsat
Eng. Al-Fadhli: Saudi Arabia has taken important steps to build effective and flexible food systems
- February 23, 2021
- 5:37 am
Eng. Al-Fadhli: Saudi Arabia has taken important steps to build effective and flexible food systems
Minister of Environment, Water and Agriculture, Eng. Abdulrahman bin Abdulmohsen Al-Fadhli, reiterated that the Kingdom of Saudi Arabia has taken important steps towards consolidating effective and flexible national food systems and based its vision on building a sustainable agricultural sector that contributes to achieving food and water security, as well as economic, social and environmental development.
During his participation in the Food Systems Summit, which was held on the sidelines of the United Nations General Assembly, the minister explained that the Kingdom has been working extensively to enhance the sustainability of natural resources, improve consumption, to reduce losses and waste by 50% by 2030, and build a strategy for responsible agricultural investment abroad, citing the Kingdom’s achievement to increase lending from the Agricultural Development Fund by more than 400% in 2020, and aims to hit a $1 billion target of agricultural loans, in addition to developing agricultural and marketing services, and improving agricultural and food production.
The minister said these steps contributed to achieving high rates of self-sufficiency for many strategic food commodities in the local markets, as the Kingdom, through its global, regional, and local partnerships has adopted different means of technologies and innovations that have raised the operational efficiency and productivity of local agricultural and food systems at the level of large and small producers and distributors, at low costs and ease of implementation with high efficiency, in addition to launching an ambitious rural development program that had a positive impact in supporting and empowering youth and women in agricultural work.
He underlined the need to build flexible and sustainable food systems at the local and international levels that ensure the availability of healthy and safe food for all segments of society, and to ensure the availability of all possible tools and measures that help achieve the goals of sustainable development in 2030, stressing the Kingdom’s keenness to support the UN efforts to rebuild global food systems, to achieve food security and combat hunger and poverty across the world.
Source: SPA
Saudi Arabia’s Agricultural Development Fund finances projects valued at $480 million
- February 23, 2021
- 5:14 am
Saudi Arabia’s Agricultural Development Fund finances projects valued at $480 million
Saudi Arabia’s Agricultural Development Fund approved funds worth SR1.8 billion ($480 million) to support different agricultural projects in the Kingdom since the beginning of the year, Argaam reported citing an official statement.
At a recent G20 meeting in Italy, Saudi Minister of Environment, Water and Agriculture Abdul Rahman Al-Fadhli said “the Kingdom has allocated SR12 billion to support small farmers”.
The minister noted that agricultural investments in Saudi Arabia, funded by the Agricultural Development Fund, have grown over the past four years by about 400 percent, which has contributed to building a resilient and sustainable food system.
The Kingdom has turned to modern technical methods in the field of agricultural extension, with the aim of reaching the largest segment of farmers in a faster and more efficient manner, the minister said.
Source: Arab News
How Saudi Arabia is making progress toward food security
The Saudi Agricultural and Livestock Investment Co. (SALIC), a Public Investment Fund (PIF) business, has made an announcement confirming that its 60,000 ton shipment of Australian wheat will be arriving in the Kingdom around the middle of June 2021.
This shipment, part of SALIC’s tender to purchase 355,000 tons of wheat, is in line with Saudi Arabia’s bid to promote Saudi investors abroad and the Kingdom’s food security program, which aims to diversify and increase sources of foreign food supplies.
SALIC’s objective is to contribute to agricultural and livestock production and supply. Its investment focus is on mass commodities, including wheat, barley, corn, rice and sugar. SALIC’s mandate is to make long-term investments in countries that have the agricultural capacity and a surplus of agricultural exports.
Saudi Arabia is the Middle East’s largest individual food importer, with about 80 percent of the country’s food consumption coming from overseas. Food consumption in the Kingdom, currently estimated at 16 million tons, is expected to grow 4.6 percent per annum. In line with its food security plans, Saudi Arabia’s most ambitious agricultural goal is to become self-sufficient and transform itself from an importer to an exporter of basic foods such as wheat, dates, dairy products, meats and vegetables to key markets around the world.
Food security is a priority for any economy, including Saudi Arabia, considering the different challenges including water scarcity, land use, climate change and human capital. It is essential to redesign food production efforts innovatively given the anticipated high growth of the population in the next 10 years. Not only is the population growing, but also its dietary lifestyle is changing as well. People’s menu trends, especially among the young generation, has shifted to food items that are richer in processed foods, meat and dairy.
We at BMG Financial Group have been involved for many years with agribusiness investment opportunities in the Kingdom and abroad. Our most recent engagement is with Sunridge Partners, an agriculture private equity manager that plans to raise capital to invest in high-quality farmland and production assets to produce high-quality citrus fruit in Spain and Portugal. This investment vehicle will be implemented in line with Environmental, Social, and Governance (ESG) guidelines.
In my opinion, SALIC’s strategy to import, invest or create joint-venture partnerships in agribusiness, locally and internationally, is a wise one and will further diversify its sources to achieve a sustainable long-term food security objective in line with the country’s Vision 2030.
Source: ArabNews
Saudi Arabia and Uzbekistan aim to develop cooperation in the field of agriculture
- February 20, 2021
- 9:01 am
Saudi Arabia and Uzbekistan aim to develop cooperation in the field of agriculture
Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov held a meeting with Minister of Environment, Water Resources and Agriculture of the Kingdom of Saudi Arabia Abdulrahman al-Fadli.
During the dialogue, the sides discussed the possibilities for building long-term mutually beneficial trade, economic and investment ties between the two countries in the agricultural sector.
The parties noted the significant potential for attracting leading Saudi Arabian companies in this area to invest in the creation of high-tech greenhouses and fruit and vegetable processing industries in Uzbekistan with the prospect of exporting to markets with high demand.
The high interest of large Saudi companies, such as Savola Group, SALIC, Almarai, Tamimi Group, who visited Uzbekistan in January this year as part of a delegation of government and business circles, to establish production activities in the market of the Republic was emphasized.
An agreement was reached on the systematization of interaction on the development of specific investment proposals to attract Saudi companies to their practical implementation.
They voiced mutual readiness for further joint work to create conditions for enhancing cooperation in the field of agriculture. In this context, the parties welcomed the signing of a Memorandum of Understanding between the State Committee for Veterinary Medicine and Livestock Development of the Republic of Uzbekistan and the Ministry of Environment, Water Resources and Agriculture of the Kingdom of Saudi Arabia.
Following the meeting, further interaction algorithms were outlined to deepen bilateral ties in the field of agriculture.
Source: UZ Daily
