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Saudi dairy giant plans to turn bio-waste into fertiliser

A Nadec cowshed. Its 92,000 cows produce 150,000 tons of bio-waste every year Nadec
A Nadec cowshed. Its 92,000 cows produce 150,000 tons of bio-waste every year
  • Nadec has linked up with PIF-owned recycling specialist Yadoum
  • In 20-year deal, a processing plant will be built near its Haradh farm

Saudi farming giant National Agricultural Development Company has signed a deal to recycle the bio-waste produced by its 92,000 cows.

The business, which is known as Nadec, said an estimated 150,000 tons of bio-waste were produced annually at its dairy farms in the kingdom.

In a filing to the Saudi Stock Exchange on Tuesday, Nadec announced that it had signed a memorandum of understanding with the Municipal Solid Waste Recycling Company (Yadoum), which is owned by the Public Investment Fund.

“The agreement aims to recycle bio-waste to contribute to protecting the environment and aligns with the kingdom’s Vision 2030,” the company said.

The project also seeks to support Saudi Arabia’s plan to reduce carbon emissions by more than 278 million tons per annum by 2030 and to be net zero by 2060.

Under the 20-year agreement, Yadoum will develop a a plot of land near Nadec’s dairy farms in Haradh, in Saudi’s eastern province, and establish a processing plant for turning bio-waste into fertiliser.

Nadec will supply Yadoum with 150,000 tons of bio-waste annually for the first five years, selling it at a specified price per ton that will increase every five years. Yadoum will then supply fertiliser back to Nadec at a predetermined discount.

Nadec milkNadec
Nadec makes over 1.4 million litres of milk and fruit juice each day, sold at 35,000 GCC stores

The farming giant revealed last month that it plans to increase its capital by SAR2 billion ($533 million) through a rights issue to fund its 2023-27 expansion strategy. Nadec is targeting annual revenues of at least SAR6 billion by 2027. 

The company produces over 1.4 million litres of dairy and fruit juice each day and its products are sold in 35,000 stores across the GCC. It posted net profit of SAR38 million for the first quarter of 2023, more than double the figure for the same period a year ago.

It plans to expand production and distribution operations, as well as increase its fruit and vegetables range by linking up with more farmers around the kingdom.

Earlier this year it signed an agreement with Pure Harvest Smart Farms Company to deliver a large-scale national food security project. This aims to deliver over 27 hectares of production in the short term, with prospects for future expansion.