Thanks to the milk localization strategy
Investment Magazine/Exclusive
The national strategy to localize milk and dairy has achieved positive results since its adoption on August 16, 2023, after the government's decision was issued in July
2023, which led to the revival of the milk and yogurt industry in large quantities produced by 3 national factories, with the allocation of 130 riyals as a subsidy from the government, which is deducted from the sales tax to the factories according to a specific mechanism.
Opportunities
The national milk and dairy factories
in Hodeidah governorate absorb 120,000 liters per day from 13
thousand farmers, which are converted into daily products represented in yogurt, haqeen and other products with a promising
investment opportunity in the manufacture of cheese, butter, ghee and the rest of the value chain.
"Investment opportunities in the dairy chain are promising given the import gap for milk and its derivatives, which reaches 69%," said Khalid Al-Shahthi, head of the dairy unit at the Ministry of Agriculture, Fisheries and Water Resources, "so the investment opportunities
are wide in (cheese, butter, cream, ghee, haqeen, yogurt, liquid milk, etc.).
Al-Shahdhi adds that there are also investment opportunities in providing production inputs for the dairy chain, represented in the establishment of cow breeding farms, feed factories,
and milk packaging, in addition to investing in dairy factory equipment, and establishing milk packaging factories.
He stressed that the dairy industry's reliance on local raw materials is a major step towards achieving a qualitative leap in national productive industries, especially food industries based on animal and agricultural production inputs.
Praise for the factories
In turn, the government and community representatives in Tihama praised the response of the factories in implementing the national strategy to localize the dairy industry and the regularity of the production process from local natural cow's milk, stressing the importance of completing the
infrastructure and providing promising opportunities for investors as a guarantee to achieve the goals of this great strategy, which provided a real nucleus for a successful model in localizing the local product and providing inputs for manufacturing industries from the domestic product
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