Modern Mills invests US$40M to expand feed milling business in Saudi Arabia

SAUDI ARABIA – Modern Mills Company (MMC), a leading milling and nutrition company in Saudi Arabia, is investing in expanding its animal feed production capacity with a supply agreement for production lines at its upcoming feed mill in Al-Jumum, Makkah region.

The project, valued at SAR 150 million (US$40 million), was approved by MMC’s board in December 2024 and is set to establish a state-of-the-art facility with an annual production capacity of 422,000 metric tons. 

The new plant will cater to both poultry and livestock feed and is expected to begin commercial production in the fourth quarter of 2026, pending regulatory approvals.

This expansion aligns with MMC’s broader strategy to enhance its production capabilities and contribute to Saudi Arabia’s food security objectives under Vision 2030. 

As demand for high-quality animal feed rises due to the growing consumption of meat and dairy products, MMC is positioning itself as a leading supplier in the region. 

The Saudi animal feed market, valued at US$6.5 billion in 2024, is projected to reach US$10.8 billion by 2033, reflecting a compound annual growth rate (CAGR) of 5.32% between 2025 and 2033. 

The country’s total compound animal feed consumption, estimated at 3.47 million tons in 2022, is expected to grow to approximately 5 million tons by 2030. MMC aims to meet this demand by leveraging its expertise in milling and nutrition to produce high-quality animal feed.

The company’s latest investment follows its successful listing on the Saudi Exchange (Tadawul) on March 27, 2024, under the ticker symbol ‘2284.’ The initial public offering (IPO) raised SAR 1,178 million (US$314 million) and attracted strong interest from both institutional and retail investors. 

Institutional investors accounted for 90% of the offered shares, while 10% were allocated to retail investors. 

The final offer price was set at SAR 48 per share, with the IPO receiving a subscription coverage of approximately 127 times for institutional investors and 21.9 times for retail investors. 

The overwhelming response resulted in an order book of SAR 150 billion (US$40 billion), highlighting the confidence in MMC’s growth potential.

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