NADEC signs partnership agreement with United Feed to establish JV

Logo of National Agricultural Development Co. (NADEC)

National Agricultural Development Co. (NADEC) signed on March 14 a partnership agreement with United Feed Co. (UFC), a subsidiary of Al Muhaidib Group, to establish a limited liability company.

In a statement to Tadawul, NADEC said the joint venture (JV) will specialize in intensive animal livestock (sheep and goats) and meat production.

NADEC will own 51% of the JV, the statement noted.

The agreement includes several terms and conditions that govern the establishment, management, and operation of the JV, as well as business transactions between the parties.

The deal will contribute to supporting animal wealth and food security in the Kingdom through establishing and managing high-tech farms to ensure the sustainability and availability of high-quality local red meat products for consumers.

The move also aims to provide suitable options and improve the trade balance through building an integrated system and developing a series of agricultural and animal projects via multiple partnerships. Moreover, it seeks to provide several direct and indirect job opportunities.

NADEC will announce the financial impact and any significant developments in due course.

In August 2023, NADEC signed a memorandum of understanding (MoU) with UFC to explore cooperation in establishing a livestock project specialized in sheep and goats, according to data available with Argaam.