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