Why Saudi is spending $4.5 billion to avoid chicken crisis
What's the story
Saudi Arabia is increasing its poultry production as part of a larger plan to diversify its economy away from oil. The kingdom has almost doubled its chicken production in the last decade, fueled by Crown Prince Mohammed bin Salman's push for food self-sufficiency, according to Bloomberg. The initiative comes under the Vision 2030 strategy, which aims to reduce dependence on oil by developing industries such as tourism, automobiles, and semiconductors.
Poultry hub
Desert region becomes hub for Saudi's poultry production
Spearheading the effort is Tanmiah Food Co., a local processing plant in Shaqra that handles about 150,000 birds a day to supply McDonald's, Popeyes, and Subway outlets, among others. Currently, Saudi Arabia imports around 80% of its food, raising concerns about potential shortages during a period of heightened geopolitical tensions, infectious animal diseases, and stressed supply chains. "The fear is the same fear of all governments: It's food security," Rupert Claxton, meat and livestock director for consultant Gira, told Bloomberg.
Investment boost
Saudi Arabia invests $4.5B to strengthen poultry sector
As part of its efforts to ensure a stable food supply, the kingdom has set aside at least 17 billion riyals ($4.5 billion) to bolster its poultry sector. The kingdom also wants additional fruit, vegetable, and fish growers, and it is preparing strategic food stores for future disasters. These investments include stakes in Brazil's BRF SA and Ukraine's MHP SE poultry producers and farmland operations in Arizona and California.
Global ventures
Kingdom expands food security efforts beyond borders
The kingdom is also working to acquire Singapore-based Olam Group Ltd.'s agribusiness unit, further diversifying its food supply sources. So far, the effort appears promising, since Saudi Arabia, according to Gira, is one of the world's fastest-growing producers, rising at a pace of roughly 6% per year. In a relatively short period of time, the country's coops have also made significant progress. Tanmiah CEO Zulfiqar Hamadani stated that a decade ago, one in every five chickens died before being sold.
Strategic partnership
Saudi produced 558,000 tons of poultry meat in 2024 half
Chicken remains an affordable protein choice for Saudi Arabia's growing middle class and young population of about 37 million people, making it a strategic focus in the nation's food security efforts. According to official data, the first half of 2024 saw Saudi Arabia produce a record 558,000 tons of poultry meat, a 9% rise over the same period the previous year.