MHP Agroholding, the largest Ukrainian poultry producer, has signed a shareholder agreement to establish a joint venture with Desert Hills Veterinary Services Company Limited (DHV), a subsidiary of Tanmiah Food Company, a leading supplier of poultry and other meat products listed on the Saudi stock market in the Middle East.
“This partnership will allow DHV and MHP to join forces to invest more than 200 million Saudi riyals (about $53 million at the current exchange rate) in farms with a capacity of more than 1 million breeder flocks, which are expected to produce approximately 175 million hatching eggs per year, in a modern hatchery and poultry feed mill," MHP said in a statement on the London Stock Exchange on Friday.
According to the memorandum of understanding signed earlier this year, DHV will hold a 55% stake and MHP will hold a 45% stake in the joint venture.
According to the agricultural holding, this year MHP and DHV signed a memorandum of understanding, which consolidated their partnership to join efforts to develop farms with a capacity of more than 1 million birds, which will annually produce about 175 million hatching eggs. A modern poultry incubator and feed mill will also be created in Saudi Arabia.
"The deepening of our alliance with Tanmiah is a strategic turning point in MHPs global reach. This partnership symbolizes our shared vision of integrating international experience with local knowledge and ensures Saudi Arabia achieves its food security goals. Our collective strength will catalyze transformational achievements in the poultry sector, contributing to innovation and setting new standards of excellence," said MHP Executive Chairman John Rich.
"Our cooperation with MHP is more than just a partnership, it reflects our commitment to strengthening Saudi Arabias food security system. Using our local knowledge coupled with global best practices, our portfolio of industry-leading, premium products, services and solutions demonstrates a commitment to ... a broader goals of the Vision 2030 program,” emphasized Zulfiqar Hamadani, CEO of Tanmiah Food Company (a subsidiary of DHV).
According to the release, the signing of the shareholders agreement is a critical step in establishing the joint venture after obtaining the necessary approvals, including approval from the Saudi Arabian Competition Authority and other relevant jurisdictions.
Tanmiah Food Company is a leading supplier of poultry and other meat products in the Middle East, listed on the Saudi stock market. The company was founded in 1962. Its business model combines businesses in agriculture, primary processing and marketing of products sold in Saudi Arabia, UAE, Bahrain, Oman, Jordan and Kuwait.
As of June 30, 2023, Tanmiah operates 114 farms, as well as six hatcheries, two feed mills and four primary processing plants (slaughterhouses). It sells its products through a network of wholesalers, retailers and food service outlets, as well as through its e-commerce platform.