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Feasibility Study for a Modern Organic Milk Farm
Feasibility Study for a Modern Organic Milk Farm
Feasibility Study for a Modern Organic Milk Farm: The project aims to establish a modern organic milk farm in one of the Kingdom’s agriculturally and climatically suitable regions, such as areas near Riyadh or Qassim.
The farm will adopt internationally recognized organic farming standards, with cows raised humanely, fed organically, free of chemicals and antibiotics, and ensuring the highest levels of hygiene and product safety.
The project focuses on meeting the growing demand for organic milk products in Saudi Arabia and the Gulf, targeting healthy families, organic shops, hotels, and upscale cafes.
Study Content
Targeted Products and Services
Targeted Products and Services
Fresh pasteurized organic milk (whole, low-fat, and skim).
Organic yogurt in various flavors.
Organic labneh and cream.
Fresh organic cheese (hallumi, mozzarella, and others).
Organic dairy drinks with natural fruit flavors.
Weekly home delivery subscription service in major cities.
Partnerships with hotels, cafes, organic stores, and supermarkets.
Educational farm visits (future tourism and educational aspect).
Demand and Market Analysis
Demand and Market Analysis
There is a significant increase in Saudi consumer awareness of the importance of organic and healthy food.
The local market imports a large percentage of organic milk, at high and unstable prices.
A growing youth population and families are interested in clean and healthy diets. The local supply of organic milk is on par with conventional milk, creating a market gap.
Demand is growing from upscale restaurants, hotels, and cafes seeking trusted organic products.
Saudi Vision 2030 supports local food security and sustainable agricultural production.
Investment Benefits
Investment Benefits
There is growing demand for organic milk both locally and in the Gulf.
Higher selling prices than conventional milk with a greater profit margin.
Government support from the Ministry of Environment, Water and Agriculture.
A project that complies with environmental sustainability and humane livestock breeding standards.
An opportunity for future development into organic dairy products or export.
An opportunity for potential competitors in the organic milk sector.
Project Features
Project Features
Raising cows in a healthy, open environment with full adherence to organic standards.
Using modern milking, sterilization, and packaging technologies to ensure quality and purity.
An organic diet for cows that includes feed free of pesticides and chemicals.
A farm designed with a smart management system (Smart Farm) to monitor health and production.
An in-house laboratory for quality control and bioanalysis.
Organic from the European Union, Organic from the United States Department of Agriculture (Saudi or international organic certification is available).
A Saudi brand identity design that represents quality, purity, and authenticity.
Financial Indicators
Financial Indicators
Expected capital ranges between 25 and 35 million Saudi riyals, including land, infrastructure, cows, production lines, organic certification, and distribution system.
Return on Investment (ROI): 13 to 17% annually after operational stability.
Expected Payback Period: 4 to 5 years.
Targeted Production Capacity: Starting at 3,000 liters of organic milk per day, subject to expansion.
Expected Net Profit Margin: 20% to 28% depending on product line expansion.
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