Saudi Arabia’s Balady Poultry Company plans a massive expansion with an investment of SAR1.14 billion ($303 million). Over the next five years, Balady aims to increase poultry production significantly. The company intends to establish two hatcheries capable of producing 200 million chicks annually.
Enhancing Poultry Processing Capacity
In its official statement to the Saudi stock exchange, Balady announced plans to establish a facility that can process 500,000 birds daily. Additionally, Balady will construct 600 broiler-chicken coops designed to raise chickens bred specifically for meat. This initiative aligns with Saudi Arabia’s goals to bolster food production and self-sufficiency.
The poultry manufacturer reported a striking 56% increase in net profit during the first quarter of 2024. This surge contrasts sharply with figures from the previous year, largely due to an increased daily output of 192,000 chickens. Balady’s remarkable financial performance highlights its growing significance in the kingdom’s agricultural sector.
Stock Market Response to Expansion
In the past year, Balady’s shares, which trade on the Nomu Parallel Market, have skyrocketed by 152%. Investors anticipate further growth due to the company’s ambitious expansion plans. Such market performance indicates strong confidence in Balady’s ability to enhance poultry production significantly.
Other producers in the Saudi poultry sector also pursue growth opportunities. The Arabian Company for Agricultural & Industrial Investments (Entaj ) plans an initial public offering (IPO) for 30% of its shares. The IPO comes at a pivotal time, with a book-building exercise that concludes on February 27, paving the way for potential market fluctuations.
New Developments in Poultry Production
Moreover, the Ash-Sharqiyah Development Company has recently obtained a license to build a broiler facility. This facility will produce over 21 million chicks annually, further enhancing local poultry capabilities. The company saw an 8.2% increase in its share price following this announcement.
Balady’s ambitious expansion demonstrates a significant commitment to enhancing Saudi Arabia’s poultry industry. With the new investment, Balady aims to fulfill increasing demand for poultry products. This initiative, coupled with growth in rival companies, promises to shape the future of agriculture within the kingdom.
