Saudi poultry producer Tanmiah Food Company has signed two agreements with the National Grain Supply Company, known as Sabil, and its wholly owned subsidiary, the National Grain Company (NGC), to secure the storage and sourcing of feed grains for its poultry operations.
The agreements were announced at the 43rd Saudi Agriculture Exhibition in Riyadh, which opened on Monday, according to a company statement carried by Gulf Daily News. No financial terms were disclosed.
Sabil is wholly owned by the Saudi Agricultural and Livestock Investment Company (Salic), which is owned by the Public Investment Fund. Ownership of NGC was transferred from Salic to Sabil on October 12.
Under the first agreement, Sabil will provide a dedicated grain storage facility in Al-Kharj, near Tanmiah’s feed milling operations. It will also handle joint quality inspection, inventory management and dispatch.
The facility will allow Tanmiah to receive its share of each cargo and draw it down in line with production needs.
The second agreement allows Tanmiah to jointly source vessel cargoes of feed grains with NGC and hedge its exposure in international commodity markets. Volumes will increase in phases, the statement said.
“These agreements transform the way we procure grain, securing consistent access to high-quality grain at competitive cost,” said Zulfiqar Hamadani, group chief executive of Tanmiah Food Company.
Abdulrahman bin Saud Al-Owais, chief executive of Sabil, said the deals were a practical step in delivering the company’s new strategy of expanding its logistics services.
Tanmiah is listed on the Saudi Exchange.
