Tanmiah Food Company And Tayson Foods Invest To Enhance Chicken Production
- July 29, 2022
- FMCG HORECA BUSINESS
Tyson Foods, Inc. (NYSE: TSN) and Saudi-based Tanmiah Food Company (2281 on the Saudi Exchange) have partnered to satisfy rising global protein demand. Tyson Foods, Agricultural Development Company (ADC), and Supreme Foods Processing Company (SFPC), are Tanmiah’s subsidiaries.
Tyson Foods is one of the world’s leading food companies and a leader in protein, while Tanmiah, founded 60 years ago, is one of the largest providers of fresh value-added poultry and other meat products, animal feed & health products, and a fast-food brand franchise operator, with plans to produce one million birds per day by 2025. ADC operates in KSA, Bahrain, and UAE. ADC manufactures and distributes fresh items for food service and retail. SFPC provides value-added chicken and beef products for distribution in Saudi Arabia, Kuwait, Bahrain, UAE, Oman, and Jordan.
Tanmiah CEO Zulfiqar Hamadani is excited to partner with a global food manufacturing leader to support and accelerate strategic expansion ambitions. This relationship demonstrates Tanmiah’s dedication to assisting Saudi Arabia’s food security and self-sufficiency aims. Tyson Foods’ dedication to animal care, food safety, sustainability, and quality aligns with our business strategy and sustainability framework. This deal will strengthen our regional market position and increase our global presence by utilising Tyson Foods’ long-standing customer ties.
Tyson Foods’ international president, Chris Langholz, said the investment would help fulfil expanding protein demand in the Middle East and other areas. International expansion is a vital aspect of our business strategy, and we’re happy to service consumers in this area.
“The strategic alliance will drive Tyson Foods’ and Tanmiah’s development,” said Tan Sun, president of Tyson Foods APAC. This will be accomplished via value chain development, product, customer, and geographic diversity, and manufacturing and operational process improvements. Tyson Foods and Tanmiah will unleash long-term prospects in the fast-growing Halal food sector.
Tyson Foods and Tanmiah have agreed to boost SFPC’s processing capacity. This investment aligns with Tanmiah’s strategic growth plan and will double value-added product output. Both firms will investigate potential in the fast-growing worldwide Halal market via a 50/50 joint venture. Tyson Foods will hold 15% of Agricultural Development Corporation (ADC) and 60% of Supreme Foods Processing Company (SFPC). The General Authority for Competition in Saudi Arabia and other government organisations must approve the deal.
Tanmiah will provide world-class industry experience to Saudi Arabia to boost the expansion of Halal goods. Tanmiah’s growth will produce Saudi jobs.
In keeping with Tanmiah’s ambitious expansion ambitions and continued efforts to create long-term value to shareholders and consumers, the company has partnered with Tyson Foods. This cooperation will allow us to expand and succeed throughout all phases of the supply chain, from material procurement to manufacturing and final distribution, while boosting supply chain efficiency and profitability. We look forward to improving our technological knowledge by cooperating with Tyson Foods to supply new and diverse products to a bigger network of clients in the Kingdom and overseas.
Global protein consumption, including chicken and other meats, is expected to climb to 95 billion pounds over the next 10 years. Meanwhile, the worldwide Halal food market is predicted to rise at a CAGR of about 10% by 2032.