Saudi Almarai plans to phase out local animal feed production to conserve water

Almarai Co., the Saudi-based Gulf’s largest dairy producer, plans to phase out local animal feed production, particularly alfalfa, in response to the Saudi government water conservation drive, the company said in a statement to the Saudi bourse, Tadawul.

The company will eventually import all its animal feed either from a third party or from its own farms in the U.S or Argentina.

The food company announced in March, 2011 that its dairy designated for export is produced by cow. That fed on 100 percent imported alfalfa.

Almarai bought last month 9,836 acres of agriculture and grazing land in Arizona, the US for $47.5 million to grow alfalfa.