Balady Poultry signs 2 land lease contracts in Wadi Al-Dawasir

Balady Poultry says the move is deemed a key step in its strategy towards expanding its poultry business with investments topping SAR 1.14 bln

Balady Poultry Co. signed, on Oct. 9, two land lease contracts with the Ministry of Environment, Water and Agriculture for a period of 19 Hijri years, renewable for another period or similar tenures, according to a statement to Tadawul.

Under the contracts, the company secured two land plots in Wadi Al-Dawasir, Riyadh, spanning an area of 27.7 million meters and 23 million meters and worth an annual rent of SAR 222,619 and SAR 190,274, respectively.

The move is aimed at ramping up investment in the production of broiler chickens, with most barns to be dedicated to the production of heavy-weight broiler chickens, thus achieving one of the company’s vital operating metrics, the statement said.

Balady Poultry also plans to establish poultry and meat farms with international standards and specifications that meet its current and future needs. This should also contribute to enhancing production quality, raising production efficiency rates and biosecurity applications, doubling the volume of its poultry business, and expanding its product lineups to caters to most consumer segments.

The move is deemed a key step in the company's strategic drive to expand the poultry business with investments exceeding SAR 1.14 billion, it added.

The company forecasts this project to generate a sound return on investment that will be positively reflected on its financial statements after its up and running.