Tanmiah Food Company, one of the kingdom’s leading vertically integrated poultry and food producers, has signed two agreements with the National Grain Supply Company (Sabil) and its wholly owned subsidiary, the National Grain Company (NGC).
This is to strengthen the sourcing and in-kingdom storage of feed grains for its poultry operations. Sabil is wholly owned by the Saudi Agricultural and Livestock Investment Company (Salic), a Public Investment Fund (PIF) company.
The agreements were announced at the 43rd Saudi Agriculture Exhibition in Riyadh, held under the patronage of Eng Abdulrahman bin Abdulmohsen Al-Fadley, Minister of Environment, Water and Agriculture.
Dedicated grain storage facility
The agreement with Sabil provides a dedicated grain storage facility in Al-Kharj near Tanmiah’s feed milling operations, along with joint quality inspection, inventory management and dispatch services. The facility allows Tanmiah to receive its share of each cargo and draw it down in line with production needs, with full traceability from receipt to dispatch.
The second agreement with NGC allows Tanmiah to jointly source vessel cargoes of feed grains and hedge its exposures in the international commodity markets. Sharing cargoes also gives Tanmiah access to bulk freight economics and greater consistency in feed quality, while drawing on NGC's international sourcing expertise. Volumes will increase in phases as the partnership develops.
Zulfiqar Hamadani, Group CEO, Tanmiah Food Company, said: “These agreements transform the way we procure grain, securing consistent access to high-quality grain at competitive cost, with the benefits carrying through our entire production cycle, from procurement and feed conversion to reducing waste. Our partnership with Salic's companies is founded on a shared conviction that food security is national security. Together, we are building a more resilient, efficient, and sustainable food production ecosystem, while proudly contributing to the kingdom’s ambitions and the objectives of Saudi Vision 2030.”
A practical step
Abdulrahman bin Saud Al-Owais, CEO of Sabil, said: “Both agreements mark a practical step in delivering Sabil’s new strategy, which targets expansion and growth by making the most of our operational capabilities and logistics assets. Deploying our storage capacity alongside NGC’s capabilities, ownership of which recently transferred to Sabil, enables more efficient and comprehensive logistics solutions across the supply chain, from sourcing and handling to storage, transport and distribution. Our partnership with Tanmiah reflects Sabil’s drive to broaden our services in support of the goods manufacturing sector and to strengthen the efficiency and sustainability of supply chains, in support of the kingdom’s food security objectives.”—TradeArabia News Service
