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The Food Industry
in the Kingdom of
Saudi Arabia
By: Fay Khalid aljeaan
Imam Abdurrahman bin Faisal University
College of design
Product design department
Design for society and community
28th March 2018
The beginning of the food industry in the Kingdom of Saudi Arabia is about half a
century ago in 1373 AH there was only 3 factories, one for ice producers in Mecca and
the other in Jeddah, and a soda factory in Jeddah also,
The real development started in 1394 during and after the economic tendency. The
percentage of factories established after this date reached 90% of the total food
factories in the Kingdom
History Of The Food Industry in in the
Kingdom of Saudi Arabia
Modern electrical
appliances inside
Bahmdien Ice Factory
in Mecca 1373 AH
soda factory in
Jeddah
1373 AH
Bahmdien Ice
Factory in Mecca
1373 AH
Is led buy
The Increasing
Proportion Of
Pilgrims Each
Year
The Gradual
Growth Of The
Population
Investment In The Oil
industry have led to an
increase in the growth
of food industry
The Growth Factors Of The Food Industry
automated
industrial like the
advanced packing
systems
1373 AH
3 factories was
established
1394 AH
The real
development
started in
1417 AH1403 AH
the number of
factories jumped
from 3 to 43
30 years
the number of
factories reached
400 factories
investment volume
of SR 9.9 billion
15 factories
per year
2006
number of
factories
reached to 605
factories
The Food Industry Growth Timeline.
15 factories
per year
The Size of the Food Industry EXPANSION
2006 2002 2012 Now2013
the food industry
product exported
In the GCC gulf
and neighboring
countries
the food industry
product started
exporting Around
the word
1954
the food industry
product exported
only locally
52 year
1935
Oil
Faster growth
Automated industrial activitiesHACP certification
ISO certification
1
The food industry in the Kingdom is divided into more than 12 basic activities
The food INDUSTRIAL ACTIVITIES
The Dairy
Industry And Its
Products
The Juice And
Beverage Industry
The Fruit And Vegetable
Packing And Packing
Factories
Fish Canned
Fish Industry
The Grain And
Grain Milling
the bread and
its products
the sugar
industry
Animal feed
and birds" straw
bale"
animal and poultry
meat production
and processing
cocoa, chocolate,
candy and sweet
products
2 3 4 5
6 7 8 9 10
In addition to other secondary food industries.
The Dairy
production significance
What is the product Saudi Arabia achieved self-
sufficiency in ?
The Kingdom has succeeded in achieving self-sufficiency in many food industries, like
dairy industries , and has succeeded in raising the rate of sufficiency in high rates in
other industries like The Juice And Beverage Industry Its usually manufactured in
parallel with milk product and The Grain And Grain Milling also the bread & its
products
Juice & Beverage Grain bread product
1 2 2 3
You can see that this food usually get
manufactured in the same factories for
Example : Almarai
Localization of the food industry
The dairy industry become the first of the food industry in Saudi Arabia that for its
size, diversity and increasing demand for it, That’s why Saudi Arabia has made a
decision toward Localization of the Dairy industries
How?
The Technical Institute
Dairy and &Food
polytechnic was
established
In 2009
Provide Financial
Support
The Government
Agency
Responsible For
Technical Training
+ + =
skilled Saudis specialized in
dairy and food industry
=
every 2 weeks to
weekly plan
Occasions like
Ramadan From weekly
daily plan
Raw Materials
FARMES
produce of
grains fruit &
vegetables meat
dairy oil and fat
80% Local Raw
Materials
Material supplier
30% local industry
Manufacturing
Packaging
Planner
Fresh product
planner line
Long-term product
planner line
Logistic
Wholesalers
Retailers
1
Traders
Retail store Internationals
Export
Packaging
material
pre-order
Packaging
order
1
2
21
2
Monthly plan some
time every 2 months
In Occasions weekly
plan
Fresh Milk line
long Milk line
Laban line
Yogurt line
Flavored Milk line
Flavored Yogurt line
Fresh Juice line
Milk food line
80%
20%
Long juice line
Food line
Plan
Food Industry
supply chain
Logistic
Documents
*Nada's supply chain model have some similarities with other companies
Trade market
Local Exports
Super market
Food Industry economic impact.
19 billion dollars
The size of the food industry in the Kingdom
=
The food sector has experienced continuous
growth even in the darkest economic
conditions, with growth not exceeding 3% in
the Saudi market, even with the price index
rising over the past 5 years.
https://www.chamber.org.sa
25/3/2018
As you see that NADEC Food
Company ranks second in the top
higher stocks in the market
Saudi Arabia agricultural investment abroad
Saudi Arabia seeks to build strategic
Food stocks of the major Food goods to
achieve food security
by King Abdullah bin Abdulaziz,
initiative for agricultural investment
abroad
The aim of the establishment of
the company "SALIC", which is
fully owned by kingdom of Saudi
Arabia
which started in early 2012
Agricultural fieldsAnimals fields
Achieve food security by
investing in strategic goods
for Saudi investors in
external agriculture
credit facilities
Facilitated financing
Comparison of the Food Industry development in Saudi Arabia
with the turkey
turkey Saudi Arabia
Turkey is characterized by the
production of fruits and nuts,
Saudi Arabia is characterized
by the production of Dairy and
Grains
Export to companies around the world
The existence of advanced agricultural systems
provided large quantities of vegetables and fruits to
the development of this industry
Do not use machines that operate on diesel and
replace them with machines that rely on electric
power
Use the latest technologies used globally in
sterilization
Teaching food Industry technology
Export to the international context but not
around the world
The Food Industry count in Agricultural filed
and mostly animals filed
There is a lot of Investment in the food industry and the
growth of this sector is continues
Getting ISO certification &HACP certification for
the past 15 year
Establish The Technical Institute Dairy and &Food
polytechnic
Strengths and weaknesses in the Food Industry
activities in Saudi Arabia
weaknesses Strengths
The percentage of the creativity in the products
become higher
The Export of food industry product is getting higher
every year
The government support the food industry sector to
grow even more
Achieve self-sufficiency in many food product
They have interest in producing healthy product in the
recent years
Advanced packing systems
The Equipment is all imported from other countries
Energy waste and materials
We separate technology from the food Industry
(Salic .2012. Strategies) http://www.salic.com
(asharqia .2018 .economy today) https://www.chamber.org.sa
(General Organization for Statistics.1439AH) https://www.sidf.gov.sa
Assaf, M. 30 (Friday, September 2016) Abdullah Bahmadin .. hunting opportunities business, Riyadh
Wass,A(Friday, September 26, 2014), King Abdullah Agricultural Investment Initiative, a leap forward in
achieving food security, Riyadh
(Al-Hurra,2014, Regional variation of the development of food industries in Saudi Arabia)
Websites
References
Books &news paper

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The Food Industry in the Kingdom of Saudi Arabia

  • 1. The Food Industry in the Kingdom of Saudi Arabia By: Fay Khalid aljeaan Imam Abdurrahman bin Faisal University College of design Product design department Design for society and community 28th March 2018
  • 2. The beginning of the food industry in the Kingdom of Saudi Arabia is about half a century ago in 1373 AH there was only 3 factories, one for ice producers in Mecca and the other in Jeddah, and a soda factory in Jeddah also, The real development started in 1394 during and after the economic tendency. The percentage of factories established after this date reached 90% of the total food factories in the Kingdom History Of The Food Industry in in the Kingdom of Saudi Arabia Modern electrical appliances inside Bahmdien Ice Factory in Mecca 1373 AH soda factory in Jeddah 1373 AH Bahmdien Ice Factory in Mecca 1373 AH
  • 3. Is led buy The Increasing Proportion Of Pilgrims Each Year The Gradual Growth Of The Population Investment In The Oil industry have led to an increase in the growth of food industry The Growth Factors Of The Food Industry automated industrial like the advanced packing systems
  • 4. 1373 AH 3 factories was established 1394 AH The real development started in 1417 AH1403 AH the number of factories jumped from 3 to 43 30 years the number of factories reached 400 factories investment volume of SR 9.9 billion 15 factories per year 2006 number of factories reached to 605 factories The Food Industry Growth Timeline. 15 factories per year
  • 5. The Size of the Food Industry EXPANSION 2006 2002 2012 Now2013 the food industry product exported In the GCC gulf and neighboring countries the food industry product started exporting Around the word 1954 the food industry product exported only locally 52 year 1935 Oil Faster growth Automated industrial activitiesHACP certification ISO certification
  • 6. 1 The food industry in the Kingdom is divided into more than 12 basic activities The food INDUSTRIAL ACTIVITIES The Dairy Industry And Its Products The Juice And Beverage Industry The Fruit And Vegetable Packing And Packing Factories Fish Canned Fish Industry The Grain And Grain Milling the bread and its products the sugar industry Animal feed and birds" straw bale" animal and poultry meat production and processing cocoa, chocolate, candy and sweet products 2 3 4 5 6 7 8 9 10 In addition to other secondary food industries.
  • 7. The Dairy production significance What is the product Saudi Arabia achieved self- sufficiency in ? The Kingdom has succeeded in achieving self-sufficiency in many food industries, like dairy industries , and has succeeded in raising the rate of sufficiency in high rates in other industries like The Juice And Beverage Industry Its usually manufactured in parallel with milk product and The Grain And Grain Milling also the bread & its products Juice & Beverage Grain bread product 1 2 2 3 You can see that this food usually get manufactured in the same factories for Example : Almarai
  • 8. Localization of the food industry The dairy industry become the first of the food industry in Saudi Arabia that for its size, diversity and increasing demand for it, That’s why Saudi Arabia has made a decision toward Localization of the Dairy industries How? The Technical Institute Dairy and &Food polytechnic was established In 2009 Provide Financial Support The Government Agency Responsible For Technical Training + + = skilled Saudis specialized in dairy and food industry =
  • 9. every 2 weeks to weekly plan Occasions like Ramadan From weekly daily plan Raw Materials FARMES produce of grains fruit & vegetables meat dairy oil and fat 80% Local Raw Materials Material supplier 30% local industry Manufacturing Packaging Planner Fresh product planner line Long-term product planner line Logistic Wholesalers Retailers 1 Traders Retail store Internationals Export Packaging material pre-order Packaging order 1 2 21 2 Monthly plan some time every 2 months In Occasions weekly plan Fresh Milk line long Milk line Laban line Yogurt line Flavored Milk line Flavored Yogurt line Fresh Juice line Milk food line 80% 20% Long juice line Food line Plan Food Industry supply chain Logistic Documents *Nada's supply chain model have some similarities with other companies Trade market Local Exports Super market
  • 10. Food Industry economic impact. 19 billion dollars The size of the food industry in the Kingdom = The food sector has experienced continuous growth even in the darkest economic conditions, with growth not exceeding 3% in the Saudi market, even with the price index rising over the past 5 years. https://www.chamber.org.sa 25/3/2018 As you see that NADEC Food Company ranks second in the top higher stocks in the market
  • 11. Saudi Arabia agricultural investment abroad Saudi Arabia seeks to build strategic Food stocks of the major Food goods to achieve food security by King Abdullah bin Abdulaziz, initiative for agricultural investment abroad The aim of the establishment of the company "SALIC", which is fully owned by kingdom of Saudi Arabia which started in early 2012 Agricultural fieldsAnimals fields Achieve food security by investing in strategic goods for Saudi investors in external agriculture credit facilities Facilitated financing
  • 12. Comparison of the Food Industry development in Saudi Arabia with the turkey turkey Saudi Arabia Turkey is characterized by the production of fruits and nuts, Saudi Arabia is characterized by the production of Dairy and Grains Export to companies around the world The existence of advanced agricultural systems provided large quantities of vegetables and fruits to the development of this industry Do not use machines that operate on diesel and replace them with machines that rely on electric power Use the latest technologies used globally in sterilization Teaching food Industry technology Export to the international context but not around the world The Food Industry count in Agricultural filed and mostly animals filed There is a lot of Investment in the food industry and the growth of this sector is continues Getting ISO certification &HACP certification for the past 15 year Establish The Technical Institute Dairy and &Food polytechnic
  • 13. Strengths and weaknesses in the Food Industry activities in Saudi Arabia weaknesses Strengths The percentage of the creativity in the products become higher The Export of food industry product is getting higher every year The government support the food industry sector to grow even more Achieve self-sufficiency in many food product They have interest in producing healthy product in the recent years Advanced packing systems The Equipment is all imported from other countries Energy waste and materials We separate technology from the food Industry
  • 14. (Salic .2012. Strategies) http://www.salic.com (asharqia .2018 .economy today) https://www.chamber.org.sa (General Organization for Statistics.1439AH) https://www.sidf.gov.sa Assaf, M. 30 (Friday, September 2016) Abdullah Bahmadin .. hunting opportunities business, Riyadh Wass,A(Friday, September 26, 2014), King Abdullah Agricultural Investment Initiative, a leap forward in achieving food security, Riyadh (Al-Hurra,2014, Regional variation of the development of food industries in Saudi Arabia) Websites References Books &news paper