Cargill makes first investment in Saudi Arabia, targets Middle Eastern growth
23 Jan 2018 --- Through a joint venture between Cargill and Arasco, the Kingdom of Saudi Arabia (KSA) has a new corn milling facility to meet the growing demand of the region’s food and beverage industry. The Middle East Food Solutions Company (MEFSCO Corn Milling Facility), inaugurated in Al-Kharj, is Cargill’s first investment in KSA. The investment marks the company’s commitment to the Middle Eastern economy and support for the region’s food and beverage manufacturers.
More capacity, expanded portfolio
The MEFSCO facility was built to serve the Gulf Cooperation Countries (GCC), which include Saudi Arabia, the UAE, Kuwait, Oman, Bahrain and Qatar. With the new plant, the joint venture is able to double its glucose and starch production capacities, triple total production volume and expand its product portfolio to include high fructose corn syrup to meet the growing demand across the confectionery, juice, bakery and catering segments in the region.
Murat Tarakcioglu, Cargill Foods Middle East, Turkey and North Africa Managing Director told FoodIngredientsFirst: “Entering the Middle East region was of strategic importance for Cargill. The Middle East and more specifically the Gulf Cooperation Council countries offer important economic opportunities, driven by a growing population, rising income and investments in infrastructure – the food industry is thriving and creating multiple economic opportunities.”
“We believe that this new facility opens the door to new exciting possibilities which also paves the way for capturing the growth opportunities not only in the Kingdom of Saudi Arabia but in the whole Middle East region,” notes Tarakcioglu.
“With the new facility MEFSCO expanded its product portfolio to include high fructose corn syrup to meet the growing demand across the confectionery, juice, bakery and catering segments in the region and started to offer cost-effective bulk solutions,” he adds.
Julian Chase, global Leader for Cargill starches, sweeteners and texturizers also said: “The Middle East food industry is one of the world’s fastest-growing markets. The MEFSCO facility gives regional food and beverage manufacturers access to a high quality, innovative products produced specifically for them. Arasco’s local knowledge and supply chain infrastructure were crucial in our ability to design a facility that best serves local market needs.”
Responding to consumer trends
The expansion allows MEFSCO to offer enhanced, market-specific solutions for Middle Eastern customers.
Ziyad Alsheikh, Chief Executive Officer of MEFSCO, said: “In the Middle East, consumer awareness around food safety and hygiene is growing steadily. Cargill’s expertise in processing agricultural commodities into high-quality sweeteners and starch-based products will provide our regional customers with an edge in making products that respond to this consumer trend. Customers will be able to serve the market’s demand for products that MEFSCO will manufacture to the strictest food safety and hygiene standards in our state-of-the-art Al-Kharj facility.”
Partnership
The MEFSCO joint venture was established by Cargill and Arasco, a leading food manufacturer in KSA, in 2013. The new starches and sweeteners facility marks the joint venture’s first investment in KSA.
Elsewhere in the business, last week FoodIngredientsFirst reported that Cargill and Puris, the largest North American producer of pea protein, signed a joint venture agreement to accelerate a new wave of “great tasting, sustainable and label-friendly plant-based foods.” Cargill is a minority investor in Puris’ pea protein business, with Cargill financially backing Puris for growth into the future.
“With a world population expected to grow to 9 billion by 2050, and the demand for protein expected to rise with the population and their increasing incomes, Cargill is committed to growing our plant protein portfolio. This includes investing in, and growing, our traditional protein businesses, as well as exploring new opportunities for future growth, such as pea protein,” David Henstrom, vice president, Cargill Starches, Sweeteners and Texturizers, tells FoodIngredientsFirst. “Pea protein holds significant potential to gain rapid adoption due to its attractive sensory characteristics, nutritional profile, functionality, versatility in applications, and ability to meet consumers’ growing expectations for non-GM and organic protein options.”
You can read the full story here.
By Elizabeth Green
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Cargill Asia Pacific
COMPANY DETAILS
Cargill Asia Pacific
138 Market Street CapitaGreen #17-01
48946
Singapore
138 Market Street CapitaGreen #17-01
48946
Singapore
www.cargill.com
alina_boey@cargill.com
Tel: +65-63938819ACTIVE CATEGORIES
bakery mixes and other bakery products; cocoa and cocoa products; fibers; flavor enhancers; hydrocolloids, stabilisers and gelling systems; soya and soya products; starch and starch products; sweeteners (non-sugar)
