A consortium of Saudi groups - comprising dairy giant Almarai, grain importer Al Rajhi and Salic, the agriculture arm of the country's Public Investment Fund sovereign wealth fund – buys Continental Farmers Group, which has large farming operations in Poland and the Ukraine.
This agreement comes in line with King Abdullah bin Abdul Aziz’s initiative to encourage agricultural investments abroad and the council’s ongoing efforts to develop and expand the field of agriculture.
Almarai’s ownership of dairies, processing plants and a distribution system makes it more profitable than its peers. The operation’s earnings before interest and taxes margin is at least 30 percent bigger than Danone, Nestle and Savola.
Saudi Arabia has invested around 40 billion riyals in agricultural and livestock projects in the Ukraine, Brazil, Argentina, Canada and Sudan, says chairman of the agricultural investment committee at the Saudi Council of Chambers.