https://arab.news/zdmy5
RIYADH: Saudi Arabia is set to increase the production and distribution of fresh commodities as leading food enterprises come together to establish a joint venture company in the Kingdom.
The National Agricultural Development Co., also known as Nadec, and Del Monte Saudi Arabia Factory Co. Ltd. have signed a memorandum of understanding to launch an initiative specializing in specific goods, including fruits, vegetables, fresh juices, potato processing, and their distribution throughout Saudi Arabia.
In a statement published by the Saudi Stock Exchange, Tadawul, Nadec underscored that the MoU specified ownership percentages for each party. Nadec’s stake will be 37.5 percent of the new company’s capital.
The announcement added that the agreement aims to establish manufacturing facilities to supply fresh products and process french fries, juice, canned fruits and vegetables as well as processed fruits, frozen fruits, and various other items to diversify the company’s products in Saudi Arabia.
The financial impact of the deal will be determined later, with any significant developments to be announced in due course, as per the statement.
The statement also added that Abdul Qader Al Muhaidib and Sons Co. is also a partner in the joint venture. Additionally, Del Monte Saudi Arabia Ltd. is majority-owned by Fresh Del Monte, a globally recognized entity in the production and distribution of fresh and fresh-cut fruits and vegetables.
Earlier in June, Nadec entered the Kingdom’s red meat market in collaboration with Minerva Foods, a global producer and exporter in this segment.
This partnership aligns with Nadec’s commitment to contribute actively to Saudi Arabia’s food security strategic goals in line with Saudi Vision 2030.
The collaboration with Minerva Foods enables Nadec to leverage its extensive distribution network to deliver high-quality meat products, meeting the growing demand in the Kingdom.
Commenting on the agreement at that time, Fernando Queiroz, CEO of Minerva Foods, expressed that the deal is expected to enable them to further develop a key pillar of their business strategy—closer proximity to end customers.
“This will be possible through the extensive distribution network that Nadec has. We are committed to supply the Kingdom of Saudi Arabia for the long term, and especially we see great development potential for our beef and lamb products within the framework of this agreement,” Queiroz had said.