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Red Meat
Red Meat
This opportunity aims to establish an integrated red meat processing facility, aiming to meet the growing demand for these products in local and regional markets. The facility will focus on using best practices in animal breeding and fattening, and then processing meat in a manner that ensures quality and food safety. A variety of products will be offered, including fresh, processed, and frozen meat, helping to meet diverse consumer needs.
The facility will also utilize substitution methods in production and packaging processes to ensure the provision of high-quality products.
Study Content
Justifications for Selecting the Project
Justifications for Selecting the Project
Strengthening the project to meet the growing demand for red meat in the Kingdom, increasing the stability of the local market and reducing dependence on imports.
Focusing on high quality standards at every stage of production, including animal selection, nutritional and healthcare monitoring, and slaughtering.
The project provides numerous job opportunities on schedule, increasing financial returns and enhancing the Kingdom’s competitiveness in the local market.
Adopting advanced methods and technologies in production and packaging processes, improving production efficiency and ensuring business sustainability.
Contributing to achieving food security by providing a local source of meat, supporting the Kingdom’s goals of localizing food production.
The ability to diversify products to meet the needs of different consumer segments, including commercial sectors, kitchens, and markets.
Focusing on implementing a production and sustainability strategy, such as water resource management,
environmentally friendly, enhancing the project’s image as an environmentally friendly initiative.
Demand Analysis
Demand Analysis
Saudi Arabia is one of the largest consumers of red meat in the Middle East. This significant increase in consumption is attributed to food traditions and dietary habits, as red meat is an essential part of daily meals and special occasions.
The Saudi red meat market is expected to witness tremendous growth in conjunction with the expected significant increase in the number of Hajj and Umrah visitors. The Kingdom plans to increase the number of visitors from 7 million in 2019 to 30 million by 2030. This massive increase will increase the demand for red meat products to meet the needs of the growing number of Hajj and Umrah pilgrims, as well as other tourists.
With the increasing number of working women in the Kingdom and the shift towards a busy and fast-paced lifestyle, processed meat products, such as frozen and canned meat, are expected to witness significant growth. Working families tend to seek quick and easy-to-prepare nutritional solutions, which increases the demand for processed red meat.
The Kingdom is experiencing significant population growth, along with an increase in household disposable income. With increased nutritional awareness and the emergence of red meat as a primary source of protein, this trend is expected to continue, driving demand for red meat products.
The Kingdom is moving toward more diverse dietary patterns with a growing culture of consuming healthy and varied foods, which is boosting red meat consumption and making it a primary choice for consumers.
Financial Indicators
Financial Indicators
Capital: 16 million Saudi Riyals
Rate of Return on Investment (ROI): 15
Total Revenue: This means the project will generate steady and increasing revenues as demand for red meat increases in the Saudi market.
Return on Investment: With a 15% return rate, the project is expected to generate good profits during the first years of operation.
Payback Period: Based on the rate of return, this means the capital will be recovered within a reasonable period of time, allowing investors to achieve approximately equal returns.
Cash Flow: Thanks to sustained demand and profitability, cash flows will achieve stability, helping cover operating costs and increase profits.
Profit Margin: The project will increase profit margins, increasing the project’s economic feasibility.
Investment Benefits
Investment Benefits
High Return on Investment: The agricultural sector, particularly livestock farming, is a lucrative sector, especially with the continued demand for red meat in the Saudi market.
The Saudi government offers incentives for projects that contribute to supporting the local economy, particularly in the agricultural production sector.
Financial Sustainability: With sustainable growth plans and production expansion, investors can achieve steady returns over the long term.
Export Potential: The project offers opportunities to export meat to regional markets, increasing revenues and providing opportunities for expansion.
Strategic Partnerships: The possibility of establishing partnerships with local and international commodity distribution companies, which contributes to enhancing product access to a greater number of markets.
Project Features
Project Features
Meeting Local Market Needs: Demand for red meat in Saudi Arabia is low, with a growing consumer demand due to population and economic growth.
Product Diversity: The project offers the potential to produce a variety of red meats, meeting the needs of various seafood products, such as fresh, frozen, and processed meat.
Reducing Import Dependence: The project will reduce dependence on meat imports, increasing economic independence and reducing import costs.
Supporting Food Security: The project contributes to enhancing food security in the Kingdom by increasing local production.
Sustainable Production: Production technologies can be implemented at an affordable cost to improve production and reduce costs.
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