04 Mar
04Mar

On February 19, 2024, Saudi Arabia's Ballady Poultry Trading Co., Ltd. announced a significant cooperation with Jiangsu Fengshang Agricultural and Animal Husbandry Equipment Co., Ltd. in China.

According to the contract signed by both parties on February 19th, a feed production plant will be established in the Khamis Mushait area of Wadi bin Hashbel City, Saudi Arabia. The project includes the construction of three poultry feed production lines, with a total estimated cost of 7 million US dollars or 26.3 million Saudi riyals.

This measure is an important component of the strategic plan of Balladi Poultry Trading Co., Ltd., aimed at enhancing self-sufficiency in poultry feed production, reducing costs, and ensuring feed quality.This article is the fifth in the "A-China Briefing" series of the A-China Industrial Research Institute, which provides an in-depth introduction to industrial policies, laws and regulations, industry trends, market demand, competitive landscape, and potential transaction opportunities in the fields of investment, trade, and engineering construction between China and Arab countries.The production capacity of the new factory will reach 60 tons per hour, which will significantly enhance the company's competitiveness in the local market and is expected to reduce its dependence on imported feed.

The Saudi poultry industry has continued to grow in recent years, and the increasing demand for poultry meat from consumers has driven an increase in local chicken production. However, the industry still faces some challenges, one of which is the fluctuation of feed costs, which directly affects the profitability of farms.

By establishing its own feed production plant, Balladi Poultry Trading Co., Ltd. will be able to better control costs and ensure a stable supply of feed.Jiangsu Fengshang Agriculture and Animal Husbandry Equipment Co., Ltd., as a globally renowned supplier of feed machinery and grain processing machinery, will provide advanced technology and equipment support for this project.Fengshang Company has extensive experience and a good reputation worldwide, and has successfully completed over 8600 projects in more than 140 countries worldwide. Its strong research and development capabilities and rich product line make Fengshang an ideal partner for Balladi Poultry Trading Co., Ltd.

According to the development trend and market demand forecast of Saudi Arabia's poultry industry, the size of Saudi Arabia's animal feed market is expected to reach 3.46 billion US dollars by 2027, with an annual growth rate of over 5%. This indicates that the Saudi poultry feed market will continue to maintain strong growth momentum in the coming years.

Therefore, the cooperation between Balladi Poultry Trading Co., Ltd. and Jiangsu Fengshang is timely and is expected to bring long-term economic benefits and market competitiveness to both parties.

The cooperation between Balladi Poultry Trading Co., Ltd. and Jiangsu Fengshang will inject new impetus into the development of Saudi poultry industry.By constructing feed production plants, improving self-sufficiency, reducing costs, and ensuring feed quality, 

this project is expected to make significant contributions to the sustainable growth of the Saudi poultry industry. At the same time, this will further deepen cooperation and exchanges between China and Saudi Arabia in the field of agriculture and animal husbandry.


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