- Transaction underlines Agthia’s commitment to support UAE’s farming industry and food security of the Nation
Abu Dhabi, UAE; 10 April 2017: Agthia Group (ADX: AGTHIA), a leading food and beverage group in the UAE, announced today that they are entering a joint venture with Anderson Hay & Grain Co., Inc., the number one hay exporter of the United States of America. A new company will be formed once the legal process is completed, which will primarily be importing Anderson’s premium forage products from the USA, and distribute in the UAE and the GCC.
Launching their first premium forage product under Agrivita Marabe brand, Agthia announced their partnership with Anderson Hay at the AGRAME exhibition at International Convention Center in Dubai, underlining their 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.
HE Eng Dhafer Ayed Al Ahbabi, Agthia Chairman, 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 programs. 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.”
Tariq Al Wahedi, Acting Chief Executive Officer of Agthia, added: “At the roots of this company lies animal feed, when it was founded by late HH 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. 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.”
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, the CEO and the President of Anderson Hay and Grain Co., Inc., said: “Anderson Hay & Grain 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.”
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 thousand metric tons of hay to importers to be sourced globally. Over the years, the scheme has been extended to benefit farmers across the UAE, and importation of hay reached 2.5 million metric tons per year in 2016.
Agthia reported net profit of AED 254 million in 2016, an increase of 10 percent on the previous year, with net revenues rising by 8 percent to over AED 2 billion. The Group’s animal feed business is the largest, representing 33 percent of total revenues in 2016.
Agthia Group is a leading Abu Dhabi based food and beverage company. Established in 2004, the Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “AGTHIA”. 51 percent of the Company’s shares are held by Senaat (General Holding Corporation), an Abu Dhabi Government entity, with the balance held by retail and institutional investors. The Company’s assets are located in the UAE, Oman, Egypt and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East. More than 3,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products: Water (Al Ain, Al Bayan, Alpin natural spring water); Flour (Grand Mills); Animal Feed (Agrivita); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait). An Emerging Businesses unit includes tomato paste, frozen vegetables, fruit puree, and baked goods.
About Anderson Hay
Anderson Hay is the #1 hay exporter from the United States. With a 60-year history founded on values of relationships, operational expertise, and reputation, the company’s goal is to provide consistently high quality products while cultivating productive and positive relationships. Anderson Hay is dedicated to pioneering opportunities in agriculture as industry leaders in farming and open supply, with production facilities located across the Western United States. Anderson Hay provides year-round delivery of high quality Alfalfa, Timothy, and Straw products globally. For more information about Anderson Hay and the products they provide, visit www.Anderson-Hay.com