Nadec approves 2027-2031 strategy with SAR 5B in investments

Logo of National Agricultural Development Co. (Nadec)

National Agricultural Development Co. (NADEC) said its board of directors approved the company’s strategic business plan for 2027-2031, which includes planned capital investments of around SAR 5 billion.

In a statement to Tadawul, the company said the plan marks a new phase in its strategic transformation, building on the strategic investments and commercial and operational capabilities developed in recent years.

The strategy focuses on strengthening execution, expanding business segments, improving operational efficiency, and delivering sustainable long-term value.

It is built around three main pillars: strengthening core businesses, expanding growth drivers, and reinforcing the foundations for sustainable business operations.

The first priority is to strengthen the dairy, juice, and food processing businesses by expanding distribution and customer reach, developing sales channels and products, and improving commercial and operational efficiency.

The second priority is to expand the protein business by leveraging NADEC’s capabilities in red meat sourcing and expanding slaughtering and processing operations, strategic partnerships, and existing sales and distribution channels.

The company also aims to develop value-added products and strengthen its presence in retail and business-to-business (B2B) channels.

The third priority is to develop a more differentiated agriculture business through technology-enabled agricultural solutions, protected agriculture, higher-value crops, and seed capabilities, aligning food security objectives with commercial returns.

The fourth priority is to provide integrated food solutions by strengthening integration across its dairy, juice, food processing, protein, and agriculture businesses. NADEC also plans to leverage its network and commercial channels to offer more integrated solutions to business and food service customers.

The fifth priority is to drive growth through productivity and efficiency gains by improving integrated supply and demand planning, manufacturing, distribution, and procurement. The company also aims to strengthen feed security and supply chains, reduce costs and waste, and enhance operational resilience.

NADEC said the plan will primarily focus on growing its existing businesses and expanding its projects and investment initiatives, including previously announced acquisitions, while continuing to assess future strategic acquisition opportunities.

The company added that the plan will be implemented in phases, with initiatives and investments evaluated in line with market conditions and business priorities.

NADEC confirmed that approval of the plan has no material financial impact at present. The financial impact is expected to emerge gradually from 2027, depending on implementation progress.