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Poultry
Poultry
This project aims to establish a development facility for processing and manufacturing value-added poultry products in the Kingdom of Saudi Arabia, based on the growing local and regional demand for poultry products. The project will utilize the latest technologies in the manufacturing and packaging of poultry products, such as frozen canned chicken and ready-to-cook poultry products such as nuggets, burgers, and fries.
The project seeks to provide high-quality products that adhere to international food safety and health standards, with a focus on providing healthy, low-fat products with high-quality proteins.
Study Content
Justifications for Choosing the Project
Justifications for Selecting the Project
The poultry market in the Kingdom and the region is experiencing continuous growth due to population growth and increased consumption of white meat, a healthy choice for many families. The project aims to meet this demand by providing value-added products.
The project aligns with national goals to achieve self-sufficiency in food production and reduce dependence on imports. It also contributes to enhancing food security by localizing poultry production and its products.
The project will provide a variety of innovative products that meet the needs of consumers seeking healthy and easy-to-prepare options, such as ready-to-eat meals and pre-prepared ingredients, enhancing the opportunity to target different market segments.
The facility will utilize the latest technologies and international standards in processing and packaging poultry products, ensuring the provision of high-quality products that meet global health and safety standards.
In addition to meeting local demand, the project offers significant opportunities for exporting poultry products to regional and international markets, especially in light of the high demand for high-quality Saudi products. The project will create direct and indirect job opportunities in various fields such as production, management, and distribution, strengthening the local economy and providing training and employment opportunities for national cadres. The Kingdom’s strategic location between European and Asian markets facilitates export operations and access to new markets quickly and efficiently.
The local and regional markets are witnessing a growing trend toward healthy, low-fat food products. The project will contribute to providing products that meet this trend and meet the demands of consumers seeking healthy food options.
Demand Analysis
Demand Analysis
One of the goals of Vision 2030 is to achieve 85% self-sufficiency in the poultry sector.
Poultry is one of the most consumed animal products in Saudi Arabia and the GCC region.
Estimated chicken meat consumption in Saudi Arabia in 2019 was 1.33 million metric tons and is expected to rise by 4% to 1.38 million metric tons in 2020, due to the potential for a large number of religious visitors.
Demand for value-added poultry is primarily driven by the expansion of the catering industry, the increase in fast-food outlets, and increased demand from hotels and restaurants.
Estimated Financials
Estimated Financials
Investment Cost
Required Capital: The capital required for this project can be reduced to between 5 million and 15 million Saudi Riyals, depending on the size of local production and location. The project may be small to medium-sized initially, with production gradually increasing according to demand.
Expected Financial Returns:
Annual Revenues: The project’s annual revenues are expected to range between 8 million and 20 million Saudi Riyals, based on production volume. This is influenced by local demand and marketing capacity.
Investment Benefits
Investment Benefits
Consistent Demand: The local market is experiencing a high and sustained demand for poultry due to population growth.
Government Support:
There is significant government support for the agricultural sector through financing and incentives.
Low Production Costs: The project requires low capital compared to other industries.
Opportunities for expanding production and exporting to neighboring markets.
The stability of the Saudi market is stable, ensuring continued demand for products.
Promoting Self-Sufficiency: Reducing dependence on imports and enhancing food security.
Project Features
Project Features
High Return on Investment: Increases the number of projects that provide good financial returns due to the continued demand for poultry.
Local Production: Increases the local supply of poultry, reducing dependence on imports.
Sustainability: The possibility of long-term sustainable production while providing essential resources.
Future Developments: The possibility of increasing production and expanding to meet local and regional market needs.
Contribution to Food Security: The project increases self-sufficiency and reduces the risk of food shortages.
Employment Creation: Provides numerous job opportunities in various aspects of production and distribution.
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