Tanmiah subsidiary contracts Chinese firm to build 100 poultry broiler farms in Saudi Arabia
Commercial production targeted for January 2027
SAUDI ARABIA – Tanmiah Food Company said its wholly owned subsidiary, Agricultural Development Company, has entered into a contract with Chengdu Design and Research Institute to develop 100 poultry broiler farms in Saudi Arabia.
The agreement assigns ADC responsibility for executing construction works related to infrastructure preparation, farm buildings, and the installation of equipment required for the broiler operations, as outlined in the company statement.
Under the announced timeline, construction activities are expected to begin in January, with project execution running through December 2026, after which the facilities are scheduled to transition into commercial operation at the start of 2027.
The total value of the project stands at SAR 165 million, equivalent to US$44 million, and is intended to deliver technologically advanced poultry farms built on land already owned by ADC within Saudi Arabia.
According to Tanmiah, the new farms will be designed to integrate automated systems and Industry 4.0 technologies, reflecting a broader push toward digitized and data-driven poultry production.
Financing and financial impact
In terms of funding structure, the company said it has agreed on long-term deferred payment arrangements to finance the development, though no additional details were disclosed regarding repayment schedules or counterparties.
Tanmiah added that the financial effects of the project are tied to its wider expansion plans and are expected to start appearing in the group’s financial statements from January 2027, once commercial output begins.
The company further stated that the broiler farm project is intended to align with future capacity growth in primary poultry processing, forming part of a coordinated expansion across its production chain.
Background to the agreement
Based on information previously published by Argaam, ADC signed a memorandum of understanding on Oct. 24, 2024, with a branch of Chengdu Design and Research Institute and Jiangsu Huali Co. Ltd. to carry out a feasibility study for establishing advanced poultry farms in the Kingdom.
That earlier agreement focused on assessing the technical and operational requirements for automated poultry facilities, which appears to have laid the groundwork for the now finalized construction contract.
Tanmiah did not provide further operational metrics for the farms, including individual production capacity or expected output volumes, but confirmed that commercial production is projected to commence in January 2027.
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