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Dairy production
Establish a modern, state-of-the-art factory for the production of various types of cheese, including soft cheese, hard cheese, grated cheese, and cottage cheese. Fresh milk from local farms will be used, ensuring high quality and unique flavor. The project includes the following:
Infrastructure: The factory consists of production units equipped with the latest technology and machinery, including advanced cooling and storage systems to ensure that the quality of the products is maintained.
Production processes: The project relies on effective and innovative production processes that ensure maximum efficiency and quality. Unique recipes will be developed to meet the diverse needs of consumers.
Marketing and distribution: The cheese products will be distributed through multiple channels, including supermarkets, local markets, restaurants, and supermarkets, ensuring that the products reach the largest number of consumers.
Study content
Rationale for choosing the project
Meeting the growing demand: The project aims to meet the growing demand for cheese products in the local and regional market, as cheese is a staple food in many dishes.
Sustainability: By utilizing local milk, the project seeks to support local farmers and boost the local economy, reflecting a commitment to sustainability.
Product diversification: The project will offer a variety of cheeses, giving consumers multiple options that cater to their different tastes.
High quality: Focusing on the use of natural and high-quality ingredients in all production processes, which enhances consumer confidence in the products.
Job creation: The project will create direct and indirect employment opportunities, contributing to the development of the local community and promoting economic growth.
Alignment with health trends: The project is in line with recent trends towards healthy food consumption, as low-fat and preservative-free cheese products will be developed.
Export opportunities: After meeting the needs of the local market, the project can explore export opportunities to regional and international markets, maximizing the project’s returns and strengthening its position in the market.
Demand analysis
Saudi Arabia’s population reached 34.1 million in 2019 and is expected to grow by 2.0% annually, surpassing 38 million by 2025, creating a sustainable demand for milk and milk-based products.
Saudi Arabia has the largest amount of cheese and yogurt in the region, with 377,000 tons consumed and 11 kg per capita consumption in 2018.
Increased consumption of cheese via fast food service and service outlets, adoption of Western food choices, and use of cheese as an ingredient in a wide range of recipes including pizza, pasta, and sandwiches will drive demand.
More working women are driving demand for ready-to-eat food and convenience dairy products including cheese.
Financial indicators
Capital: SAR 10 million
Rate of return on investment: 13%
Expected annual profit SAR 1.3 million
Return on Investment (ROI): 13%
Payback Period: 7.7 years
Investment advantages
Market stability: The dairy sector is a stable consumer sector, which ensures a constant demand for products.
Government support: The government sector provides support and facilities for agricultural and industrial projects in the Kingdom, which enhances the chances of project success.
Brand strength: The ability to build a strong brand thanks to the wide local consumption of products.
Increased profitability: Achieve good investment returns by capitalizing on the local and regional demand for dairy products.
Leveraging technology: Ability to improve productivity and reduce costs by applying the latest technologies in manufacturing and distribution.
Features of the project
Basic products: Milk and milk products are considered a staple in the diet, fueling continued demand.
Local market growth: Demand for dairy products in Saudi Arabia is growing thanks to population growth and rising nutritional awareness.
Scalability: Production can be expanded to include a variety of dairy products such as yogurt, cheese, and powdered milk.
Use of modern technologies: Utilize advanced production techniques to ensure high quality and improve productivity.
Export opportunities: Potential to expand into export markets in the GCC and neighboring countries.
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