Strong growth in halal, organic forecast in Middle East

There are great opportunities for food manufacturers and processors, particularly in the meat and poultry sectors, to meet the strong demand for halal foods, according to a report in Zawya. Companies based in the Middle East and Southeast Asia regions are in a strong position to meet this demand as the result of their location in or near established Islamic economies, and many of these firms are expected to attend the Gulfood Manufacturing exhibition in Dubai.
Among the rapidly growing trends in Gulf Cooperation Council (GCC) countries are packaged foods, organic foods and food retailing, according a report in Arabian Gazette, citing a report from Frost & Sullivan. By 2018, the markets are forecast to reach US$37.6 billion, US$1.5 billion and US$155 billion, respectively. The study also highlights the region’s ambition to reduce its dependence on food imports; 70 percent of food products in the GCC are imported, with cereals accounting for about 55 percent of the total. There are also opportunities for allied industries such as processing machinery, packaging and logistics when imported foods are processed locally for consumption or re-export.
Healthy and innovative packaged foods, organic fresh meats, dairy and poultry, and selling these products in modern and innovative retail spaces are the segments presenting attractive growth opportunities in the GCC food and beverage industry, according to the report. Furthermore, it adds, GCC governments are taking the initiative by establishing an organic farming department in the ministry of agriculture and an organic farming association to develop local farms.
Some of the challenges of poultry farming in GCC countries were outlined in a recent report on the sector in the United Arab Emirates (UAE) by the USDA. High feed prices, low biosecurity and diseases combine to push up the costs of production, and there are no subsidies for UAE producers. Nevertheless, poultry meat output is forecast to reach 45,000 metric tons in 2015, 5 percent more than last year. This covers 15 percent of the total consumed in the UAE, and Brazil was the leading source of imported poultry in 2014.
Gulfood Manufacturing 2015, the region's largest sector-specific trade show for the food and beverage manufacturing, processing and packaging industry, takes place at the Dubai World Trade Centre (DWTC) from October 27-29. As well as the trade show, there will be a series of high-level panel discussions on the impact of new regional rail, ports and air transport hubs on supply chains, and achieving quality and safety across the food chain.

Al Watania seeks advisor for stock flotation

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  Freeimages.com/Cristina 2

  Poultry company Al Watania is reportedly seeking an advisor for a stock flotation.

  From WATTAgNet:
  Al Watania, the largest poultry establishment in the Middle East, has reportedly invited banks to serve as its financial advisor as the company plans a stock flotation.
  Several banks are expected to make formal presentations to Al Watania in March, with the company planning to decide which will be its advisor by the end of May, said sources who requested anonymity because of the confidential nature of the matter.
  Al Watania’s key product categories include broilers, table eggs and feed. The company, which is headquartered in Riyadh, Saudi Arabia, produces about one third of Saudi Arabian broiler meat, according to the WATT Global Media Top Companies Database. The company’s meat production for 2013 was estimated at 221,000 metric tons with plans to double its daily production. In terms of table eggs, the company produces 1 million eggs daily with hopes of tripling that amount by 2015.
  The poultry company is owned by Saudi banking magnate Sheikh Suliaman Al-Rajhi, who helped found Al Rajhi Bank. He served as Al Rajhi Bank’s chairman until November 2014, but he remains the bank’s largest individual shareholder.

Qatar's Hassad Food considers acquiring Brazil poultry assets

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  Andrea Gantz

  Hassad Food of Qatar said it was looking at possible purchases of Brazilian poultry assets.

  From WATTAgNet:
  Hassad Food, the agricultural arm of Qatar's sovereign wealth fund, said it was looking at possible purchases of Brazilian poultry assets.
  Hassad Food is also looking to acquire more sugar assets, citing that there are structural problems in both of those industries in Brazil.
  "We have a lot of stuff in our pipeline and Brazil is definitely part of that, not only sugar but also poultry," Youssef Hegazy, vice president for business development at Hassad Food, said on February 25.
  Hegazy did not give the names of the assets in which his company was interested, and said discussions were still in an early stage.
  "We had past discussions and moved to more advanced stages, but nothing materialized then, so now we are in an early stage," he said.
  Hassad Food, wholly owned by the Qatar Investment Authority, was set up in 2008 to boost the Gulf country's food security. The rich desert states of the Gulf, which depend on imports for 80 to 90 percent of their food, have poured cash over the past few years into buying farmland and other agricultural assets abroad.
  Earlier in February, Hassad Food announced that it had acquired a significant minority equity interest in the Oman poultry project A’Saffa.
  On the grains side, Hassad Food acquired farmland in Australia in 2009, focusing its investments there on livestock and grains. It is also looking at grain assets in North America.

Hassad Food acquires interest in Oman’s A’Saffa

Qatar’s Hassad Food, a premier investor in the food and agriculture sectors, has acquired a significant minority equity interest in Oman poultry project A’Saffa.
The transaction was signed February 9, by Nasser Al Hajri, chairman of Hassad Food, and Mohamed bin Obaid Al Mazrouei, chairman of the Arab Authority for Agricultural Investment & Development.
A'Saffa Foods was the first integrated poultry project in Oman and remains its largest, according to theWATT Global Media Top Companies Database. The A’Saffa Foods project’s facilities produce high quality fresh and frozen poultry meat products and its 100 per cent owned subsidiary produces value added processed meat products, reported TradeArabia.
“We are very excited about this acquisition which is a strong testament that Hassad Food is on the right track towards achieving its vision in becoming a leading global provider of high quality food products,” said Al Hajri. “Hassad’s mission is to invest in efficient, profitable, growth-oriented global brands, contributing to the welfare of Qatar and the region by providing high quality products while using the latest technology in harmony with the environment and adhering to the highest standards of corporate social responsibility. I am confident that this partnership is in line with what we are trying to achieve in supporting the economic development and integration with the GCC market.
A’Saffa chickens are fed with 100 per cent natural feed, produced in a highly equipped feed mill and slaughtered according to Islamic law (Shariaa), according to a statement from A’Saffa.
The company plans to expand its existing poultry operations and diversify into other parts of the value chain that complements its business over the next three to five years.
Al Shanfari added: “To have a strong partner shareholder on board like Hassad Food of Qatar, I am confident that the company will further progress its way to an even stronger presence globally which will impact positively on our shareholders of the company.”

Oman government proposes $258.9 million poultry project

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  Andrea Gantz

  The Oman government has proposed a project in hopes of making the country's poultry industry more self-sufficient.

  From WATTAgNet:
  The government of Oman is planning to set up a major poultry project with a capital investment of OMR100 million (US$258.9 million) and is seeking financial support from the private sector.
  Promoted by the state-owned Oman Food Investment, the new poultry industry development is part of the country's initiative to attain self-sufficiency in poultry meat production, the Times of Oman reported.
  As part of this initiative, Oman Food Investment has invited country's largest integrated poultry company, A'Saffa Foods, to purchase a 20 percent stake in the proposed project. According to the report, the company has agreed to take a stake in the proposed OMR50 million (US$129.45 million) joint venture firm that will process poultry meat.
  A location for the proposed poultry project has not yet been established. However, the Oman government has placed two of three possible locations for the project on a short list, with the final choice of a location to be determined soon.
  The board for A'Saffa Foods has also approved another endeavor that will add to its growth. The company recently approved a proposal to set up a facility to manufacture organic waste and fertilizer production that is has obtained from residue of poultry farms.

Ak Bars hatchery project progressing in Tatarstan

The Tatarstanian Poultry Farming Complex Ak Bars, part of the poultry farming unit of Ak Bars Holding Company, is progressing with the second and final phase of the construction of a brand new hatchery located in Lenino-Kokushkino village, Tatarstan. When finished, the hatchery will reach a setting capacity of 39 million eggs per year.
The project was launched in June 2013 and is part of Ak Bars’ strategy to vertically integrate the poultry production chain. This will allow them to provide affordable, quality products in the Republic of Tatarstan.
After an extensive comparison between potential suppliers, Ak Bars selected Petersime exclusive agent Hartmann Lebensmitteltechnik GmbH to deliver the equipment for the hatchery. The hatchery will use BioStreamer setters and hatchers, complete with Embryo-Response Incubation technologies. Petersime and Hartmann also supplied the automation and HVAC equipment. Hartmann organized the delivery, installation, and commissioning of the equipment, as well as the staff training.
Together with poultry plant Kazanskaya OJSC and Agrofirm Ak Bars-Pestretsy OJSC, Poultry Farming Complex Ak Bars Ltd. is part of the poultry farming unit of Ak Bars Holding company. The joint unit is ranked among the leading regional poultry producers and accounts for nearly one third of the total poultry meat production in the Republic of Tatarstan. The total annual average broiler stock of the three poultry plants together amounts to about 2 million broilers.
The name Ak Bars is derived from the official symbol of Tatarstan and literally means snow leopard.

Al Ajban Poultry Farms picks Big Dutchman for expansion project

Big Dutchman’s Khalid Abdelrahman, left, and Hamad Al Ameri, CEO of Al Ajban Poultry Farms, sign a contract that marks Big Dutchman’s selection to provide equipment for the Al Ajban Poultry Farms expansion. 
Big Dutchman, a leading equipment supplier for modern poultry production, has signed a contract for an expansion project with Al Ajban Poultry Farms, Abu Dhabi, United Arab Emirates (UAE). The contract is for the expansion of already well-established farms and covers the supply of poultry equipment for six broiler production houses and nine houses for broiler breeder management.
Al Ajban is the first poultry producer in the UAE to have a fully integrated array of farms to include all forms of production and processing in poultry. The innovative company was also first to install automatic nest system inclusive automatic egg collection, and produces an average of 13 million hatching eggs annually.
Big Dutchman, Al Ajban Poultry Farms continues relationship
The latest contract follows a considerable commitment to Big Dutchman, based out of Vechta, Germany, who previously supplied Al Ajban Poultry with multiple houses in 2012.
"We are honored that we have once again been selected by Al Ajban Poultry Farms as their trusted partner, and to have the opportunity to further strengthen our relationship," commented the Vechta-based area sales manager Khalid Abdelrahman. The two companies have had dealings since 2011, and Abdelrahman, along with Dr. Yasser El Shamy, the project manager of Al Ajban Poultry, will be managing the current expansion.
Modern poultry production at Al Ajban Poultry Farms
Being the only end-to-end poultry operation in the UAE, Al Ajban Poultry Farms is deemed a leader in modern poultry farming. The company commenced a complete poultry integration project between 2009 and 2010. This project therefore expanded the business to not only include houses for breeder management and hatcheries, but also a processing plant and a feed mill.
They are, however, not done yet. The company is in the process of planning a transformation of bringing all facilities up to international standards for hazard analysis and critical control points. This is in order to adhere strictly to the highest standards of production performance, hygiene, biosecurity, nutrition, protection of poultry stock against diseases and product safety.

Acolid launches Indian River breed to Jordanian poultry market

Acolid, supported by Aviagen, recently launched the Indian River brand to poultry producers in the Hashemite Kingdom of Jordan, as well as the Republics of Iraq and Yemen. The seminar where the Indian River brand was introduced attracted many prominent people in the region's agriculture sector.
The seminar was initiated by the Ministry of Agriculture, under the patronage of Jordan's Minister of Agriculture, Akef Al-Zu'bi. The opening speech was delivered by the secretary general of the ministry, in which he praised the efforts of Acolid and Aviagen for ensuring that the Jordanian poultry industry was able to take advantage of the most advanced poultry breeds and continue to develop both internally and into neighbouring Arab markets.
Work began on introducing grandparent and parent stock to Jordan in 1986. Today, 38 different projects exist, all aimed at continuing to improve food security and sustainability in the Arab region. Acolid and Aviagen have publically stated that this drive to grow the Arab market will continue.
Michael Garden, business manager for the Middle East & Africa, Aviagen said: "We have worked with Acolid for several decades now. In that time we have seen the Arab poultry market go from strength to strength. The initial project was the first of its type in the Arab world and since then, the depth of skill and knowledge that has been built up matches anywhere in the world.
"We are now here to celebrate another first, the introduction of the Indian River breed. Support has, as always, been exceptional and initial performance reports from producers are incredibly positive. We are delighted to once again be making history with Acolid."
As part of the event, a number of guest speakers were invited. There was time for commercial and technical presentations on Indian River "The fastest Growing Brand," "R&D," and "Current Health Issues in Middle East." Dr. Mirza general manager; Acolid, also addressed the large number of breeder farmers and company owners in attendance to talk about the vision of the company.
Dr. Abduallah T. Al-Thenayan, CEO of Acolid Group, said: "Our vision is not just for Acolid but for the Arab world. The projects we have already put in place are the strong foundations of a fully integrated industry which spans borders and offers a huge potential market.
"To continue this strategy and development, we are persistently working on introducing the latest animal production techniques as we work towards full integration and cooperation across all areas of agricultural production through our well established projects and companies in the Arab countries."
One producer, Ghanem Association, has already been working with the Indian River bird as part of initial trials. The report from the association at the event was met with interest as the results so far are extremely impressive, highlighting the competitive advantage of the bird over other standard breeds.

Cobb broiler breeder presence grows in Oman

Oman is the latest Middle East country where the Cobb500 broiler breeder is rapidly gaining ground, helping the drive for self-sufficiency.
"Traditionally, Oman has been a large importer of broiler hatching eggs, with around a quarter of India's hatching egg exports going there," said Euan Meldrum, marketing manager of Cobb Europe. "This is now changing as the industry embarks on an ambitious expansion program with the Cobb500 now 100 percent of their parent stock.
"The country's 3.1 million people eat an average of around 20kg of poultry a year and, with production on course to quadruple in 10 years, it will be more than 50 percent self-sufficient by 2015."
The sales growth in Oman follows the plan by Al Watania Poultry, the largest chicken producer in the Middle East, to establish a Cobb grandparent operation in Saudi Arabia that will this year begin supplying its own broiler breeder requirements.
"The Cobb500 is ideally suited to the Middle East region, adapting well to warmer climates with integrators benefiting from the breed's efficiency right through the production chain from high chick numbers to yield advantage in the processing plant," added Euan Meldrum.