NADEC says expected financial impact of imported feed subsidy removal ranges between SAR 50-60 mln

25/08/2020 Argaam

 

The removal of the subsidy for the dairy segment is expected to have an additional cost in the range of SAR 50 million to SAR 60 million in 2020, National Agriculture Development Company (NADEC) said in a bourse statement.

 

The financial impact for the following years will range between SAR 70 million to SAR 90 million per annum, the statement said, adding that the range is driven by the consumption patterns, feeding mix etc.

 

The company indicated that in 2020, it focused on driving business efficiency and cost transformation to help mitigate the impact of this change in subsidy on the financial statements.

 

NADEC is also launching long-term strategic business transformation initiatives which will help to counter the effect of this change in the future years.

 

According to data compiled by Argaam, NADEC announced in December 2019 that it is currently evaluating the financial impact of the elimination of subsidy on imported feed, except green fodder.

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