ARASCO inks MOU with Bühler to bolster feed production efficiency in Saudi Arabia

SAUDI ARABIA – Arabian Agricultural Services Co. (ARASCO) has signed a Memorandum of Understanding (MoU) with Bühler Group in a strategic move to boost operational efficiency and modernize feed production in Saudi Arabia.

The agreement, signed on February 26 in Al-Kharj, was represented by ARASCO’s Group CEO, Mr. Ziad Al-Sheikh, and Mr. Johannes Wick, CEO of Bühler’s Grains and Food Sector.

The partnership aims to increase efficiency in feed manufacturing, integrate advanced technologies, and promote sustainability through eco-friendly production processes.

This collaboration aligns with Saudi Arabia’s Vision 2030 goals by enhancing food security and strengthening the livestock sector.

The two companies will focus on knowledge exchange, adopting modern processing technologies, and improving production lines to ensure sustainability.

ARASCO’s commitment to developing high-quality feed supports the Ministry of Environment, Water, and Agriculture’s target of producing 600,000 tonnes of seafood through aquaculture by 2030, further contributing to the country’s self-sufficiency in food production.

Beyond its feed production, ARASCO has been making significant strides in the poultry industry.  Since entering the poultry sector in 2004, ARASCO has significantly expanded its production capacity, now reaching 600,000 birds per day.

The company aims to further solidify its position as a major player in the Saudi poultry industry, which currently boasts a self-sufficiency rate of over 65%. Al-Sheikh anticipates this rate will rise to 90% in the coming years, driven by ARASCO’s investments and those of other industry players.

The company recently completed the final stages of launching an Initial Public Offering (IPO) on the Saudi Stock Exchange (Tadawul) for its subsidiary, ARASCO Foods (Entaj), a poultry company based in Saudi Arabia.

On January 31, Entaj said that it has already received approval from the Saudi Capital Market Authority (CMA) to list 30% of its shares, which is 9 million shares.

“This IPO supports our goal of improving food security in Saudi Arabia, and it will help us invest more in our infrastructure and workforce to grow sustainably,” said Ziyad Al Sheikh, Vice Chairman of Entaj.

In 2022, ARASCO signed a 20-year contract with Saudi Arabia Railways (SAR) to transport 850,000 tonnes of grain annually from King Abdulaziz Port in Dammam to its Al-Kharj plant.

This agreement, signed by SAR CEO Dr. Bashar Al Malik and ARASCO CEO Naseer A. Abanmi, aimed to improve the efficiency of the company’s logistics network while reducing environmental impact.

Al Malik highlighted that the collaboration supports Saudi Arabia’s Vision 2030, the National Transport and Logistics Strategy, and the National Strategy for Industry by ensuring the seamless movement of essential commodities.

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