NADEC is betting on red meat to grow beyond milk.
One of Saudi Arabia's biggest dairy companies plans to spend about five billion Riyal ($1.3 billion) over five years, much of it on red meat, as it follows its largest rival into a market the Kingdom still relies on imports to fill.
The money will go into growing its meat business, selling more milk and juice, and farming higher-value crops in greenhouses through 2031.
National Agricultural Development Co., known as NADEC, said in a filing on Tuesday.
Why it matters: meat has become the new battleground for Saudi dairy companies looking to grow beyond their core business.
Almarai, the country's biggest food company, launched a beef brand called Haboor last week, backed by about 500 million Riyal. It expects the brand to start showing in its results from the fourth quarter.
There's room for both. Saudi Arabia produced only 62% of the red meat it consumed in 2024, according to the General Authority for Statistics.
Already working: NADEC's protein revenue doubled from a year earlier in the third quarter. It runs a slaughterhouse in Haradh with UK meat processor Hilton Foods and now fully owns livestock firm Al Raie.
A branded line of packaged red meat is due in major supermarkets by the end of this year.
Not giving up on milk: NADEC is also strengthening its core. Last month it agreed to buy rival Nada's dairy herd for about 370 million Riyal (nearly $100 million), and would then supply Nada with raw milk under a long-term contract. The deal isn't final yet.
Chief Executive Officer Solaiman Al-Twaijri said the company intends to "take NADEC to the next level" by investing about five billion Riyal across the business.
What's missing: NADEC didn't say how much the plan should add to revenue or profit, how the spending splits between businesses, or how it will be funded. Almarai hasn't put a revenue figure on Haboor either.
What to watch: whether NADEC pays for the plan with cash, debt or new shares, and how fast its packaged meat wins shelf space against Haboor.
For more on the meat race, read Dairy Giant Almarai Doubles Its Beef Bet to $133 Million.
