Naf terminates 2 poultry feed manufacturing, supply contracts

Logo of Naf Company for Feed for Industry

Naf Company for Feed for Industry ended by mutual agreement two contracts for the manufacturing and supply of poultry feed, citing exceptional circumstances as the pricing terms under both contracts are no longer aligned with current market conditions.

In separate statements to Tadawul, the company said that the first contract was with Mazarena Poultry Co. for the manufacturing of poultry feed, while the second was with Taryah Poultry Co. for the supply of poultry feed.

Naf pointed out that it has agreed with both parties to continue their business relationship through periodic purchase orders, which will be executed based on their needs and the company’s available production capacity.

The contracts were terminated by mutual consent, with no penalties or financial claims resulting from the termination.

Naf expects that the shift from contractual agreements to periodic purchase orders will have an impact on its 2026 revenues; however, it is currently difficult to determine the financial impact, as it depends on the actual volume of future purchase orders.

This step aims to protect Naf’s profit margins and ensure the stability of its operations under the current conditions.

In August 2025, Naf signed a poultry feed supply contract with Taryah Poultry worth an estimated SAR 62 million (excluding VAT), while in September, it signed a SAR 55 million feed manufacturing deal with Mazarena Poultry (VAT inclusive), Argaam data showed.