RIYADH, SAUDI ARABIA — Tanmiah Food Co. announced it entered a memorandum of understanding with MHP SE, a leading European poultry producer based in Ukraine, which serves as the first step to boosting poultry production in Saudi Arabia. A signing ceremony was held in Riyadh, Saudi Arabia, on Feb. 16.

“This memorandum represents an important milestone in MHP’s international strategy,” said John Rich, executive chairman at MHP. “I am confident that Tanmiah’s excellent operational track record in combination with MHP’s industry-leading poultry expertise can bring transformational results to the Kingdom on their way to achieving the food security goals of 2030 Vision.”

MHP and Tanmiah’s subsidiary Desert Hills for Veterinary Services Company Ltd are looking to establish a joint venture with the aim of accelerating efforts to close the existing production gap in Saudi Arabia’s domestic poultry sector. Funds for the initiatives will primarily come from the Agriculture Development Fund of Saudi Arabia.

Part of the companies’ vision for this venture is developing poultry breeding facilities. MHP and Tanmiah plan to add a greenfield hatchery in Saudi Arabia that would hatch 108 million eggs annually. They will also invest in feed mills that produce 137,000 tonnes of feed each year.

“The new partnership with MHP is yet another important step, demonstrating our resolve to contribute towards KSA’s poultry self-sufficiency whilst reinforcing our pioneering role in supporting the Kingdom’s food security and self-sufficiency objectives,” said Zulfiqar Hamadani, chief executive officer at Tanmiah. “In addition, as Europe’s largest poultry producer, MHP brings a wealth of industry expertise that will advance Tanmiah’s production capabilities and efficiencies, whilst enhancing our sustainability agenda.”

The partnership between Tanmiah and MHP is the latest of Tanmiah’s attempts to expand its poultry production. In 2022, Tanmiah created a partnership with Tyson Foods Inc. as well. Tyson purchased stake in the company in July 2022. Then in November that same year, Tyson invested in Tanmiah’s subsidiary Supreme Foods Processing Co. in order to increase its capacity of chicken production by 100,000 tonnes per year.