Almarai keen for Irish dairy supply sources

Almarai, the largest integrated dairy business in the world, has confirmed that it is exploring the possibility of long-term supply arrangements or joint ventures in Ireland. In the past three years, the Saudi Arabian firm has bought land in Argentina and invested in the Ukraine to secure future access to raw materials.

In response to a query from the Irish Farmers Journal, Tom Trimble, head of the strategic business unit in Almarai, confirmed: “Almarai is looking at opportunities to develop long-term strategic relationships with suppliers of key ingredients. This was a subject covered in the discussion with Minister Coveney during his visit to the Almarai head office.”

“Such agreements could go from long-term supply agreements through strategic alliances to joint ventures. In every case, the key is in developing mutually acceptable terms for both parties,” he said.

Trade sources told the Irish Farmers Journal that Almarai is already a significant customer for Irish sourced ingredients.

While the company will this year produce one billion litres of fresh milk from its 75,000 cows in the Saudi Arabian desert, it has a growing demand for imported ingredients for its cheese, butter, flavoured milk and infant nutrition businesses.

Two thirds of Almarai’s €1.3bn of annual dairy sales are in Saudi Arabia, with the balance spread across other Gulf states including Kuwait, Bahrain, Egypt, Jordan and the United Arab Emirates.