NADEC, Del Monte Sign New Memorandum
NADEC (National Agricultural Development Company), one of the Middle East and North Africa’s largest agricultural and food-processing share stock companies, signed a Memorandum of Understanding (MoU) with Del Monte Saudi Arabia Factory Company Ltd.
This strategic joint venture aims to specialize in fresh products like fruits, vegetables, and potato processing in Saudi Arabia.
Background of NADEC
Established in 1981 by royal decree, NADEC is a joint stock public company, with 20% owned by the Saudi government. It’s one of the few and largest vertically integrated dairy businesses globally.
NADEC’s operations include six dairy farms with around 60,000 cows and two modern dairy plants, producing 1.5 million liters of milk daily.
NADEC’s Evolution, Offerings
Over the years, NADEC has become one of the largest agri-food companies in the Middle East/Africa region. It offers over 200 product SKUs, from fresh milk to cheese, and a wide range of fruit juices.
The company’s agricultural production includes various crops and is integral to Saudi Arabia’s food self-sufficiency goals.
Details of the Joint Venture
The MoU, signed on November 9, specifies NADEC’s stake at 37.5% in the new company. The joint venture aims to establish manufacturing facilities for a variety of fresh and processed products, including French fries and fresh juice.
Del Monte Saudi Arabia Factory, a subsidiary of Fresh Del Monte, is a partner in this venture, along with Abdul Qader Al Muhaidib and Sons Co.
Strategic Goals, Financial Impact
This collaboration is a strategic move to diversify NADEC’s product offerings in Saudi Arabia. The financial impact of the deal will be evaluated later, with any significant developments announced in due course.
The partnership between NADEC and Del Monte marks a significant step in enhancing the availability of fresh and processed agricultural products in Saudi Arabia.
It aligns with the Kingdom’s goals of increasing food self-sufficiency and offers promising prospects for both companies.
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