In a bid to protect the environment, Saudi dairy giant National Agricultural Development Co. signed a deal with Municipal Solid Waste Recycling Co., also known as Yadoum, to set up a biowaste recycling plant that produces fertilizer.
The agricultural and food-processing company, which undertakes massive cow-raising activities for dairy production, generates an estimated 150,000 tons of biowaste every year.
As part of the agreement, Yadoum, which is wholly owned by the Saudi Investment Co. for Recycling, will build a plant for recycling and processing this biowaste to produce highly efficient organic fertilizers.
NADEC will provide the required land on lease for the project near its dairy farms in Haradh.
The 20-year agreement is an extension of a memorandum of understanding signed between the dairy giant and SIRC, wholly owned by Public Investment Fund, on Jan. 30, the company said in a bourse filing.
As part of the new deal, NADEC will commit to supplying Yadoum with 150,000 tons of biowaste annually at a specified price for the first five years of the agreement period.
In return, Yadoum will supply high-quality fertilizer to NADEC at a specific price per cubic meter, based on a predetermined discount agreed upon by both parties, the Tadawul release said.
Both parties have agreed to increase prices every five years.
The release added that both companies will review future quantity projections every two and a half years throughout the agreement’s validity period.
As part of the agreement, Yadoum will provide expertise and capabilities in research and development to support NADEC in finding permanent and sustainable solutions for managing biowaste.
In their earlier MOU signed in January, both companies said they aim to recycle around 400,000 tons of biological waste annually and process it into organic fertilizer.
By supporting diverse agricultural ventures, Saudi Arabia seeks to fortify food security, address potential supply shortages, and ensure the stability of food supply chains.
The country has also made progress on over half of its sustainable development targets, the Kingdom’s Economics and Planning Minister Faisal Al-Ibrahim told the UN on Monday at a critical meeting evaluating the world’s environmental obligations.
He said: “The Sustainable Development Goals embody our collective commitment to progress. They serve as both a practical and moral guide to development, safeguarding our planet and leaving no one behind.”
Saudi Arabia is on a path of economic diversification and also focusing on sustainability programs, including the Saudi Green Initiative, as it aims to achieve its net-zero emissions target in 2060.
Source: Arab News