NADEC announces new strategy; signs 11 agreements, MoUs

Logo of National Agricultural Development Co. (NADEC)

National Agricultural Development Co. (NADEC) announced on Jan. 30 its 2023-2027 strategy under the slogan (A New Dawn), in a ceremony held under the auspices of the Minister of Environment, Water, and Agriculture Abdulrahman AlFadley.

In a filing to Tadawul, the company said the strategy aims to strengthen its leadership locally and regionally through expanding the current business operations, developing new markets, expanding product range and entering into new ventures.

NADEC aims to become a vertically integrated food business, targeting SAR 6 billion revenue by 2027.

A comprehensive plan for financial restructuring and increasing solvency will be developed to support the company's future operations and help it realize its strategic and operational goals.

The company’s goals include expansion of production and distribution operations, as well as products development, to strengthen its position and increase its share of the dairy and juice markets to generate profit and sustainable growth.

In addition, the firm seeks to expand in the vegetables and fruits segment as well as boost contract farming with large- and small-scale farmers to provide high-quality crops to customers.

It also aims to enter into the red meat business, to ensure that the highest standards are met throughout the supply chain and provide customers with the right and high-quality products.

NADEC intends to pioneer in the production of high-quality seeds, such as potato and wheat, in addition to using clean, green, and sustainable energy.

The company will also foster innovation in the realm of manufacturing development, as well as focus on efficiency and cost optimization.

As for the significant agreements and memorandums of understanding (MoU) signed with entities from the government, private and non-profit sectors, they include an agreement with Saudi Leha Group to form a limited liability company jointly controlled by both parties for the production and marketing of high-quality potato seeds in the Kingdom.

An agreement was sealed with Pure Harvest Smart Farms Co., where NADEC will acquire and promote the company's vegetable and fruit products, and sell them under its brand utilizing its marketing and sales capabilities.

A MoU was concluded with Saudi Investment Recycling Co. (SIRC) to recycle biowaste.

NADEC also inked a MoU with the Olive Producers Association, to establish collaboration in providing consultations to olive farmers while also seeking to enhance quality standards via the use of best practices in production and marketing. The collaboration also includes fertilization, irrigation, trimming, plant growth management, immunization, and field visits.

A MoU was signed with Agricultural Development Fund to improve agricultural sector performance through cooperative training in agricultural projects.

The firm also sealed a MoU with the Food Industries Polytechnic to prepare and train Saudi cadres in the field of food and animal production.

A MoU was inked with Elion Resources Group to grow vegetation in the desert with the purpose of promoting sustainable agriculture and assisting in the accomplishment of the Saudi Green Initiative goals.

A MoU with concluded with MiracleTree Life Science to expand contract farming, and another one was concluded with Saudi Food Bank (Etaam) to prevent food waste as part of the social responsibility.

NADEC sealed a MoU with the National Center for Palms and Dates to utilize dates in manufacturing, and another one was signed with the National Center for Vegetation Development and Combating Desertification to improve vegetation cover in the Kingdom.