Friday 19 August 2022

Agthia enters into JV with Anderson Hay & Grain

UAE, April 10, 2017

Agthia Group, a leading food and beverage group in the UAE, will enter into a joint venture with Anderson Hay & Grain Co, a leading exporter of hay in the US.

A new company will be formed once the legal process is completed, which will primarily be importing Anderson’s premium forage products from the US, and distributing it in the UAE and GCC, said a statement from Agthia.

Launching their first premium forage product under Agrivita Marabe brand, Agthia announced its partnership with Anderson Hay recently at the Agrame exhibition at International Convention Centre in Dubai, UAE, underlining its commitment to support farming industry as well as the food security of the nation by providing superior quality feed solutions for the livestock of the country, it said.

It was back in 2006 that the Government of Abu Dhabi had decided to gradually ban growing alfalfa and other animal feed grass to conserve the underground water reserves. To augment the shortfall in local production, the government had entered the global hay importers market, awarding 600,000  metric tonnes of hay to importers to be sourced globally, it added.

Over the years, the scheme has been extended to benefit farmers across the UAE, and importation of hay reached 2.5 million metric tonnes per year in 2016.

Agthia reported net profit of Dh254 million ($26.07 million) in 2016, an increase of 10 per cent on the previous year, with net revenues rising by 8 per cent to over Dh2 billion. The group’s animal feed business is the largest, representing 33 per cent of total revenues in 2016, said a statement.

Eng Dhafer Ayed Al Ahbabi, chairman, Agthia, said: “This partnership with Anderson Hay is another testament to our commitment to create value for our shareholders and to support our nation’s food security programmes.”

“Our combined strength will provide a solid supply and distribution alternative in the UAE and the GCC markets that would be difficult to achieve working independently,” he said.

Tariq Al Wahedi, acting chief executive officer, Agthia, added: “At the roots of this company lies animal feed, when it was founded by late Sheikh Zayed bin Sultan Al Nahyan in 1978.”

“Over the past four decades, we have been continually enhancing the products and services we are offering to our customers,” he said.

“This joint venture and the launch of “Agrivita Marabe” is another step in this direction, complementing our existing Agrivita animal feed portfolio and providing a full-service solution to our livestock customers in the UAE,” he added.

With over 36 years of unrivalled experience, Agrivita includes more than 50 types of animal feed, and offers innovative solutions for the nation’s farmers, working proactively to create products addressing their needs, raising industrial awareness, and providing expert guidance.

The company has recently launched “Agrivita Smart Order Button, IOT”, capitalizing on the advanced technologies to bring convenience and speed in customer service.

Mark T Anderson, CEO and president of Anderson Hay and Grain Co., Inc., said: “Our company is proud to be in the UAE and the Gulf in partnership with Agthia.”

“Our joint venture will join two industry leaders, focused on quality products, strong relationships and customer service. We aspire to be the preferred forage provider to customers in the Middle East,” he added. – TradeArabia News Service

Tags: | Agthia | JV |

More Industry, Logistics & Shipping Stories

calendarCalendar of Events