Our illustrious history dates back to the early 80s, when the first dairy company in the Kingdom of Saudi Arabia was founded. Since then, NADEC has continuously raised the bar in production, innovation and quality excellence.
NADEC was established in 1981 with a start-up equity capital of SR 400 million. The Saudi Arabia Government owns 20% of the company. NADEC is the first and largest agricultural shareholding company in Saudi Arabia and is involved in the production of a variety of crops including wheat, fodder, maize, potatoes and more.
This was the year when the company commenced with the production of milk and laban under the nadec brand name. The start-up capacity was 50,000 litres per day, and the quantity was subsequently increased.
Nadec achieved a historic business performance with SR 399 M revenues (77% from agriculture) and a net profit ratio of 28% from sales.
Revenue from dairy products reached SR 100 million, with production capacity in Dairy Plant 1 boosted to 200,000 litres per day.
Revenues from dairy products reached SR 135 million. The commissioning of Dairy Plant 2 increased capacity by 600,000 litres per day, bringing the total capacity close to 1 million litres per day.
By this year, revenues from dairy products reached SR 317 million.
Revenues from dairy and juice products reached SR 331 million. This was the year when the company introduced fresh juices as part of its product range.
NADEC achieved another first by introducing juices in PET bottles. Dairy and juice revenues reached SR 575 million, with juice accounting for 24% of the total business. The company also achieved 20% CARG, above the organic growth and setting a new record in profits.
NADEC Farms have a total herd of over 50,000, yielding an efficiency boost from 6,000 litres per season to 10,000 litres per season. The farms are equipped with modern dairy processing units with capacities of 1 million litres per day. The company also expanded its SKUs from 43 to over 100. Distribution centres were increased from 2 to 31.
In line with the Government’s directives in conserving water in regulating the local wheat and agricultural crop production, a re-engineering of the business was conducted. This initiative reduced the dependency on agricultural produce and stimulated the growth of consumer products.
In order to accelerate growth, NADEC Group is organised into two independent business units – NADEC Foods and NADEC Agri. NADEC Foods became the fastest growing dairy/food company in the Middle East, with growth rate exceeding 20%, growing its market share in all key categories.
NADEC announced major expansion plans in its forage crop production, dairy farms, processing and distribution infrastructure. The company also signed important agreements with key international suppliers. A new leadership team was put in place to grow the business and its people. NADEC became the world’s largest integrated dairy farm in a singular location. Additionally, NADEC introduced a number of innovations in the Kingdom of Saudi Arabia.
A new growth strategy was designed, aimed to grow the NADEC business at double-digit rate.