Saudi firm buys farmland in Argentina to secure animal feed
By Adam Schreck, Associated Press
DUBAI, United Arab Emirates ? Saudi Arabia's largest dairy company said this week that it is buying Argentine farm operator Fondomonte for $83 million to secure access to a supply of animal feed. . . . . .
Despite its scorching desert climate, Saudi Arabia for decades produced millions of tons of homegrown wheat with the help of generous farm subsidies. It is now trying to wind down domestic production because of concern over dwindling water supplies. . . . .
"This is a relatively significant move, that they're actually acquiring a company," said Farouk Miah, an analyst at NCB Capital in Riyadh. "If anything, I think this is the beginning of a trend." . . . .
As their populations boom, oil-rich Gulf Arab nations have shown increased interest in buying farmland and other agricultural assets overseas to ensure reliable food supplies. . . . . .
By Adam Schreck, Associated Press
DUBAI, United Arab Emirates ? Saudi Arabia's largest dairy company said this week that it is buying Argentine farm operator Fondomonte for $83 million to secure access to a supply of animal feed. . . . . .
Despite its scorching desert climate, Saudi Arabia for decades produced millions of tons of homegrown wheat with the help of generous farm subsidies. It is now trying to wind down domestic production because of concern over dwindling water supplies. . . . .
"This is a relatively significant move, that they're actually acquiring a company," said Farouk Miah, an analyst at NCB Capital in Riyadh. "If anything, I think this is the beginning of a trend." . . . .
As their populations boom, oil-rich Gulf Arab nations have shown increased interest in buying farmland and other agricultural assets overseas to ensure reliable food supplies. . . . . .
Comment