Saudi Arabia-Riyadh

Almarai is world’s first to get NSF standard

Almarai: new milestone

Riyadh-headquartered Almarai, the largest dairy in the Middle East, is the first in the world to achieve NSF’s innovative Global Animal Wellness Standards (GAWS) for animal welfare management Systems and dairy production.

GAWS establishes practices for management systems to help ensure animal welfare, health, feed, housing, and husbandry is the first of their kind in the industry.

Almarai achieved GAWS certification for its dairy and live poultry operations. It is the first company to be certified for dairy production in the world and the first company to be certified for poultry hatchery, meat poultry production and poultry production and poultry transportation in the Middle East.

Almarai officals at the company’s Annual General Meeting

Almarai officals at the company’s Annual General Meeting

NSF, is a leading global public health and safety organisation. Launched in 2019, the innovative NSF GAWS is the first system in the food agriculture industry that establishes a universal approach to animal health and wellness.

For the first time, GAWS offers industry producers and buyers an outcome-based solution that addresses the entire lifecycle of all key species. It establishes best practices for how animals are kept, raised, and responsibly managed and, most importantly, addresses animal management systems.

NSF Global Animal Wellness Standards enable the food industry to shift away from traditional prescriptive approaches to animal welfare schemes, to one focused on systems management and outcomes.

“Animal welfare is an issue that impacts the agricultural and food production industry globally. We are pleased that Almarai achieved GAWS certification to help ensure consistent animal wellness is instituted at every stage of their dairy and live poultry production,” said Dr Elaine Vanier, technical scheme lead for Animal Wellness, NSF International.

Almarai is the Middle East’s largest dairy producer and the world’s largest vertically integrated dairy company. Since 2019, they have worked closely with NSF to implement animal welfare management systems on their journey to GAWS certification. GAWS aligns with Almarai’s sustainability strategy, Better Every Day, which focuses on caring for consumers, protecting the environment and producing responsible products.

“Almarai is one the most trusted food companies in the region and is known for its product quality. We place great importance on animal welfare. Not only because it’s the right thing to do, but also to help ensure consistent high quality and safer products. NSF has been hugely supportive throughout the whole process, which enabled us to setup up and aligned our animal welfare management system to the latest international standards,” said Kevin Wonnacott, divisional QHSE manager at Almarai.

Almarai is the Middle East’s largest dairy producer

Almarai is the Middle East’s largest dairy producer

NSF GAWS establish best practices by benchmarking against global animal welfare regulations and domestic animal welfare regulatory requirements, industry standards and codes of practices. Consistent with the International Organization for Standardization (ISO) Technical Specifications 34700 and World Organisation of Animal Health (OIE) guidelines.

A facility must create, document, and implement an animal welfare management system to achieve certification. There are three levels of conformance from baseline, assurance to certification, awarded to sites that demonstrate total commitment and compliance. All levels require independent audits to verify compliance and include zero tolerance for animal abuse, mistreatment or neglect.

NSF GAWS eliminates the need for food companies with global supply chains to navigate a range of different local and regional approaches to demonstrate their commitment to animal wellness by having one common, globally applicable solution.

 

EYES MARKET EXPANSION

Meanwhile, the food and beverage major is planning to increase its market share by introducing new products during 2022, Argaam reported citing the firm’s board report for 2021.

Almarai: new products in the pipeline

Almarai: new products in the pipeline

Proceeding with the robust growth strategy, the firm intends to implement record levels of investment in poultry by doubling supply through targeted investments over five years.

By expanding the poultry segment, it will focus on maximising the full potential of its core business lines across the Gulf Cooperation Council region and will lift the dairy market share in foods and long life milk. 

Almarai also aims to grow its foodservice segment into a profitable unit and strengthen its UAE footprint as it continues to bolster operations in Egypt and Jordan.

 

PROFITS CLIMB 9PC TO $112M

Almarai posted strong sales across product categories in the first three months of the year as demand improved following the easing of Covid-19 restrictions in the kingdom.

The company recorded a 9-per cent increase in net profit for the three-month period ended March 31 on the back of higher revenue. Net profit rose to SR420 million ($112 million) from SR385 million, over the same period in 2021, Almarai said in a regulatory filing to the Tadawul stock exchange.

Total sales/revenue for the quarter reached SR4.5 billion ($1.2 billion), up by 23.6 per cent compared to the same a year ago.

The positive performance was driven mainly by Almarai’s bakery business segment, which posted a profit growth of 79.2 per cent, as well as by the dairy and juice category, which recorded a 5.9 per cent increase in profit. Profit in the poultry category also increased by 9 per cent on the back of a 20 per cent revenue growth. The top line growth was supported by the food service segment, however, profitability growth was affected by the continued increase in the cost of corn and soya during the quarter.

“Positive revenue growth was evident in all categories due to improved trading conditions post Covid-19 movement restrictions, opening of schools and higher number of visitors in the region,” Almarai said.

 

OGM APPROVES DIVIDENDS

Meanwhile, the ordinary general meeting (OGM) of Almarai Company approved a cash dividend distribution, equivalent to 10 per cent of the company’s capital, for 2021.

The cash dividend payout stands at SR 1 per share, aggregating at a total value of SR1 billion, according to a bourse filing.

It is noteworthy to mention that in 2021, the company reported a 21.21 per cent decline in its consolidated net profits after Zakat and tax to SR 1.56 billion, compared to SR 1.98 billion in 2020.