Nadec unit breaks ground on SAR 2 bn livestock facility in Hail

Construction begins on a new livestock farming plant in Hail: Al Ra’i National Livestock, a subsidiary of National Agricultural Development Company (Nadec), broke ground on a new livestock farming facility in the city of Hail, Nadec said in a disclosure to Tadawul.

The details: Some SAR 2 bn will be funneled into the intensive farming facility to produce some 1 mn heads of sheep per year by 2030, with 30% of its total production to be contracted to small local livestock farmers.

What we know about the funding: Al Ra’i landed a SAR 1.11 bn, 15-year tenor loan from the Agricultural Development Fund to finance the project in March. The instrument is backed by a mortgage on Wadi Al Dawasir lands owned by Nadec and corporate guarantees provided by other partners.

Addressing the gap: The farming project aims to produce red meat to bridge the gap in local demand and reduce imports, Nadec Chairman Abdulaziz Al Rabdi told Al Arabiya. The plant will generate new direct and indirect jobs through different schemes involving third parties, he added.

ALSO- Al Ra’i signed MoUs with the University of Hail to enable student training and research, and with the Sulaiman Al Rajhi Foundation to support leather and wool family businesses. Another MoU with Entag Association will provide local training and support programs.

Nadec has been ramping up efforts to localize red meat production, inking a 10-year agreement in March with UK-based Hilton Foods to process and package red meat here at home under a new JV. The company also partnered with United Feed last year to set up a JV for livestock and meat production.