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Livestock breeding and fattening project
The livestock breeding and fattening project aims to meet the growing demand for red meat in Saudi Arabia. The project includes livestock breeding and fattening operations in advanced and efficient ways, in addition to establishing and operating a red meat processing plant to meet the needs of the local market.
Study content
Rationale for choosing the project
Strong demand for red meat: Demand for red meat in Saudi Arabia is expected to increase due to continued population and economic growth, making this project a profitable investment.
Reliance on imports: Due to insufficient local production, the Kingdom imports large quantities of red meat, creating an opportunity to invest in local production to achieve self-sufficiency.
Government support: The Saudi government provides significant support to the agricultural sector, including financial support, tax and construction facilities, which facilitates the establishment and operation of livestock farming projects.
Environmental strategy: The project is designed using the latest technologies in environmental sustainability and resource management, achieving efficiency in the use of water, energy and feed.
Demand analysis
Population increase and demographic growth: Saudi Arabia is experiencing continued population growth, which is driving an increase in red meat consumption due to the increase in population and rising rates of personal consumption.
Dependence on imports: Despite efforts to increase local production, the local supply does not yet meet the large demand for red meat, making the market highly dependent on imports to fill this gap.
Changes in consumption patterns: There is a growing trend towards increased consumption of red meat due to improved income levels and economic development, which is boosting the demand for these products.
Consumption during rituals and holidays: Demand for red meat peaks during festivals and rituals, increasing annual demand and creating opportunities to increase production to meet these increased needs.
Government support: The Saudi government provides significant support to agricultural and livestock projects by providing tax concessions, financial support, land and resources to boost local production and achieve self-sufficiency.
Emerging markets: Saudi Arabia’s red meat market is an emerging market that is thriving thanks to economic growth and a steady increase in consumption, making it home to promising investment opportunities in the agriculture and livestock sector.
Financial indicators
Capital: SAR 2 million
Expected rate of return 15%
Return on Investment (ROI): With a rate of return of 15%, the company is expected to generate annual profits of between 300,000 and 400,000 SAR based on the capital invested.
Payback period: The business is expected to recover the capital within 6 to 7 years based on the annual returns.
Profitability: With low operating costs and good returns from the sale of meat and livestock, the project will be profitable and sustainable in the long run.
Costs: Costs include livestock purchase, feed, health care, and maintenance, with the potential to reduce costs through improved productivity.
Investment advantages
Growing demand for meat: With Saudi Arabia’s growing population and economic development, the demand for red meat is increasing, making the project a promising investment opportunity.
Government support for the agricultural sector: The Saudi government supports food security and agricultural projects through initiatives and incentives, which enhances the sustainability of the project.
Stable financial returns: With the high prices of meat in the market, the project will achieve stable and good returns through the sale of productive livestock.
Product diversity: The project can provide a variety of products such as fresh and frozen meat, boosting revenue.
Low operating costs: With proper nutrition and good livestock care, operational costs can be minimized and returns can be maximized.
Use of advanced technology: Improving breeding and fattening methods using modern technologies will increase productivity and reduce costs.
Features of the project
Alignment with Saudi Vision 2030: The project is in line with the Kingdom’s goals to achieve food security and reduce dependence on imports, thus enhancing its sustainability.
Self-sufficiency in meat: The project contributes to reducing dependence on importing meat from abroad, which enhances the Kingdom’s self-sufficiency.
Potential for expansion: The project can expand in the future to increase production and cover more market needs.
Export opportunities: As production grows, new markets can be opened to export meat to neighboring countries, opening the way for additional revenues.
Employment opportunities: The project contributes to providing job opportunities in the fields of raising and caring for livestock, which contributes to improving the local economy.
Rapid production cycle: A fast production cycle can be achieved by fattening cattle in a short period of time, ensuring sustainable profits.
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