#1AHDB AHDB Export Webinar - Middle East Week Understanding Dairy Export Opportunities: Saudi Arabia, Qatar and Kuwait Thursday 10 September 10:00 - 11:30 BST DAIRY#2Programme 10.00 10.10 10.30 10.50 Chairman's welcome Lucy Randolph Understanding dairy export opportunities: Saudi Arabia Yazan Shukair, Head of Market Entry Arabian Enterprise Incubators, (AEI Saudi) Understanding dairy export opportunities: Qatar Fiona Chamberlain, Senior Commercial Attache, DIT Suzanne Golding-Lynch, Country Manager, Welsh Government, Qatar Understanding dairy export opportunities: Kuwait Gula Al-Sharafi, Senior Trade Adviser, British Embassy. Kuwait 11.10 Q&A 11.30 Webinar Ends AHDB#3Housekeeping ✓ All attendees are muted ? Timings Q&A Webinar will be recorded Show Control Panel Click on the arrow in the orange box File View Help ▾ Audio AHDB GX N Sound Check ? Computer audio Phone call No audio MUTED Microphone Array (Realtek High Defi... > Speaker/HP (Realtek High Definition... ▼ Talking: Questions Click the white arrow to open the questions box Type your question here Test Webinar ID: 896-278-395 This session is being recorded. GoToWebinar Send#4Further information FOOD IS GREAT BRITAIN & NORTHERN IREL HDB Lucy Randolph Senior Exports Manager, Dairy AHDB Tel: +44 7808 794 559 Email: [email protected] AHDB#5A SAUDI AHDB Webinar Understanding Dairy Export Opportunities: Saudi Arabia Yazan Shukair Head of Market Entry - Arabian Enterprise Incubators (AEI Saudi) AHDB DAIRY#6• • • KSA - Country Overview Founded in 1932 by HM King Abdul-Aziz Al Saud Largest trade partner with UK in MENA UK is 2nd largest foreign investor in Saudi Population: About 32 million - 70% under 30 Expatriate Population: 80% of private sector workforce Women: 60% of undergraduates are female, increasing pressure for jobs Interconnected: 2.2 mobile phones per head of population Social Media: Highest density Twitter & Facebook users globally 120,000 students overseas, 8,500 in UK AHDB A SAUDI DAIRY#735 30 25 20 15 10 5 31.5 2.3 GCC Population Saudi Scale Saudi National Population Expat Population 4.7 4 9.4 0 Saudi Arabia Qatar Oman Expatriates Kuwait UAE ■Nationals 1.4 Bahrain Saudi Arabia Qatar Oman Kuwait United Arab Emirates Bahrain The GCC overlaid on Europe AHDB ASAU SAUDI DAIRY#8. Dairy in Saudi Arabia Saudi Arabia is the largest dairy consumer among the GCC countries Increasing consumption of milk and other dairy products supported by: High population growth High per capita income Changing consumer preference toward healthier foods and packaged dairy products (cream cheese, ice cream, butter) Saudi Arabia is the largest dairy producer among the GCC countries • Al Marai has the largest dairy processing plant in the world, producing million tons of milk and milk products • • Saudi dairy producers have established cattle friendly environment for maximum output of milk from cows The dairy sector in KSA has come under some pressure recently due to: • Introduction of VAT • Increase in energy and labour costs • Economic slowdown The market is segmented into drinking milk, butter, cheese, yoghurt and others Milk segment held the largest market share and is expected to dominate the market by 2025 Most dairy products are sold through supermarket and hypermarket channels AHDB عصائر Juices المراعي Almarai Saudi Arabian dairy products market is projected to grow at a CAGR of 3.56% during the period 2020 to 2025 DAIRY#9Major Dairy Producers in KSA • Al Marai • Largest dairy company in Saudi Arabia by market value and the world's largest vertically integrated dairy company Operates dairy farms and processes food, with presence in the dairy, juices, bakery, poultry and infant nutrition categories Distribution footprint covers the GCC, Egypt and Jordan المراعي Almarai • The strongest brand in Saudi Arabia and one of the most recognized names in the Middle East • Market capitalization of 54.4 billion SAR ($14.5 billion) SADAFCO • A leading food manufacturer, seller and distributor in Saudi Arabia and the ME • A market leader in long life milk and ice cream Marketing its products under its flagship name, Saudia Market capitalization of 3.4 billion SAR ($906 million) NADEC (Saudi Arabia's National Agricultural Development Co) An agricultural and food-processing company • 20 percent owned by Saudi's Public Investment Fund • Distribution footprint in UAE, Kuwait, Bahrain, Jordan and Lebanon Market capitalization of 3.2 billion SAR ($853 million) SADAFCO ช่วง nadec ندى • Nada Dairy Company Specialize in the production and distribution of fresh dairy, fresh juice and long-life milk The Nada farm in Al-Hofuf is one of the largest dairy enterprises in KSA, accommodates over 12,000 milking cows Al Safi Danone NADA • A joint venture between Saudi Arabia's Al Safi Group of Companies and French food company Danone Soon to be acquired by NADEC سدافكو الصافي دانون DANONE AHDB DAIRY#10Challenges • The Dairy market in Saudi Arabia is highly competitive with a large number of foreign players. Saudi Arabia has 62 dairy firms with several farms of global standard milking around 100,000 cows daily Market leaders, such as Almarai and Al Safi Danone, control 60% of the dairy market, while Nadec and Nada control a further 25% of the market while the others must fight for a share of the remaining 15% Aggressive price war strategies large dairy producers in KSA have significant control over their fixed costs and enjoy high profits Dairy producers in KSA are capable of spending heavily on integrated marketing communication to outpace their rivals KSA's Halal and SFDA regulations can be difficult / expensive Saudi Arabia shows a strong potential, and is targeted to be self-sufficient in dairy, being the highest producer of dairy products in the GCC AHDB DAIRY#11Opportunities Strong demand for packed dairy products such as cheese and butter Butter is a very consolidated category with the Almarai, Lurpak, Président and Nadec brands accounting for almost all sales in Saudi Arabia • Butter and spreads continued to be negatively affected by the introduction of VAT in 2018 and unhealthy image • • Saudi Arabia is a large importer of cheese • • Cheese is the most valuable category in the dairy market accounting for more than 30% of total dairy spends The cheese market in KSA has witnessed a strong growth over the last five years Saudi Arabia imports nearly 172K tonnes of cheese and curd in 2018. Saudi Arabia imported 5,117 tons of French cheese at a value of 22 million euros in 2018. Shift in the consumer's preference towards healthier diet patterns Consumer demand for healthy and high quality foods is growing in the Kingdom of Saudi Arabia Saudi Arabian Ice Cream sector accounted for a volume share of 29.9% of the regional (Middle East & Africa) market. The sector and is forecast to grow at a CAGR of 7.6% during 2017-2021. There are variety of dairy products available in supermarkets and hypermarkets when compared to other stores. AHDB DAIRY#12AHDB Webinar Understanding Dairy Export Opportunities: Qatar Fiona Chamberlain, Senior Commercial Attache, DIT Suzanne Golding-Lynch, Country Manager, Welsh Government, Qatar AHDB DAIRY#13Qatar - Overview SAUDI ARABIA ©2006 Encyclopædia Britannica, Inc. Manama BAHRAIN Al Khuway Al-Ghuwayriyyah 52° 30 0 Fuwayrit Al-Huwaylah 80 km 60 mi 26 Dukhän Umm Bab Al-Jumayliyyah QATAR Al-Wusay Al-Rayyan Doha Al-Khawn Persian Gulf 23 Al-Kir'anah Joh Umm Sa'id Musay id UNITED ARAB EMIRATES Tropic of Cancer The Department of International Trade, represents the UK in Qatar in conjunction with the devolved governments of Wales, Scotland and Northern Ireland A well-defined and publicly available National Food Security Strategy Qatar has recently announced that it has achieved 100 percent self-sufficiency in an increasing range of dairy products Baladna Some gaps in the market for specific UK Dairy Products • Regulatory challenges Qatar Market Guide 13#14Qatar Baladna Dairy Farm لينا BALADNA المباشرة بأعمال التوسعة الجديدة لـ 25 ألف رأس من الابقار BALADNA По Milk Milk りましい BYL BALADNA PY BALADNA Made By Nature#15Qatar - Overview SAUDI ARABIA ©2006 Encyclopædia Britannica, Inc. Manama BAHRAIN Al Khuway Al-Ghuwayriyyah 52° 30 0 Fuwayrit Al-Huwaylah 80 km 60 mi 26 Dukhän Umm Bab Al-Jumayliyyah QATAR Al-Wusay Al-Rayyan Doha Al-Khawn Persian Gulf 23 Al-Kir'anah Joh Umm Sa'id Musay id UNITED ARAB EMIRATES Tropic of Cancer The Department of International Trade, represents the UK in Qatar in conjunction with the devolved governments of Wales, Scotland and Northern Ireland A well-defined and publicly available National Food Security Strategy Qatar has recently announced that it has achieved 100 percent self-sufficiency in an increasing range of dairy products Baladna Some gaps in the market for specific UK Dairy Products • Regulatory challenges Qatar Market Guide 15#16Qatar - Current Opportunities • • • ORGANIC طبيعي ORGANIC صبعي WORLD'S LARGEST MONOPRIX IN QATAR! WWW.QATAREATING.COM La cave à fromages Consultancy services to look at dairy farming, to help improve business and environmental challenges Organic Chicken Organic Eggs Organic long life milk and milk powder • Organic baby milk 16#17Qatar - Contact Details Department for International Trade (DIT) [email protected] Welsh Government [email protected] General Enquiries [email protected] 17#18AHDB Webinar Understanding Dairy Export Opportunities: Kuwait Gula Al-Sharafi Senior Trade Adviser, British Embassy. Kuwait AHDB DAIRY#19Please contact Gula Al Sharafi for Kuwait slides Department for International Trade For more information: Gula Al Sharafi Senior Trade Adviser British Embassy - Kuwait E: [email protected]#20Any questions? AHDB DAIRY#21'Inspiring our farmers, growers and industry to succeed in a rapidly changing world'#22Agriculture and Horticulture Development Board 2017 | All Rights Reserved AHDB Version: 16:9/2017-11-30a