What's Happening?
Almunajem Foods Co. and Balady Poultry, both based in Saudi Arabia, have entered into a seven-year processing partnership and distribution agreement. Under this profit-sharing agreement, Balady Poultry will produce and package poultry products for both companies,
which will be supplied both domestically and internationally. The partnership aims to support continuous growth and increase the market share of locally produced products in Saudi Arabia. Almunajem Foods' managing director, Thamer Abdulaziz Abanumay, and board member Abdullah Omar Bawazir have indirect interests in this agreement due to their positions in Balady Poultry.
Why It's Important?
This partnership between Almunajem Foods and Balady Poultry is significant as it reflects a strategic integration between production and distribution within the poultry sector. By combining resources, the companies aim to enhance operational efficiency and product quality, potentially leading to increased market share and competitiveness in the Saudi market. This move could influence other companies in the region to pursue similar collaborations, thereby impacting the overall dynamics of the food industry in Saudi Arabia and potentially beyond.
