February 17, 2009
HADCO picks Sudan for its first farming investment
Hail Agricultural Development Co (HADCO), a Saudi Arabia private sector company, has picked Sudan for its first investment in farming abroad under a government scheme to ensure steady food imports.
HADCO has recently acquired farming land in Sudan which would be suitable for planting wheat, corn, soy and livestock feed, it said in a statement.
It is conducting tests on the planting of wheat and corn.
The company said this project represents the firm''s initial foreign investment as it is in the process of studying opportunities available in several countries.
It also said that HADCO will decide to deploy the full investment for the project with an estimated cost of US$45.3 million after the completion of the experimental work.
The Saudi government has been encouraging private and public firms to invest in farm projects abroad after the kingdom last year abandoned a 30-year self-sufficiency programme in wheat which coincided with a surge in global prices of grains.
HADCO said state-owned Saudi Industrial Development Fund has agreed in principle to contribute about 60 percent of the project''s cost.
Saudi Arabia started to reduce purchases of wheat from local farmers by an annual 12.5 percent as of this year.
The Saudi government said last year it would spur global investment through an investment firm owned by public and private investors to ensure long-term food security.
According to state media, Ethiopia, Turkey, Ukraine, Egypt, Sudan, Kazakhstan, the Philippines and Vietnam were among countries Saudi officials and investors were considering for such projects.