Saudi Arabia’s Almarai Co., the Gulf’s biggest dairy firm by market value, has acquired Argentine Fondomonte S.A. for $83 million.
Fondomonte has three farms totaling 12,306 hectares which focus on the production of corn and soy beans. Almarai is interested in securing feedstock for its dairy and poultry operations.
The deal is in line with recent trends: For real Gulf agro-investments rather take off in established food exporting countries like Brazil or Australia that have the infrastructure, the track record and the institutional set ups to actually deliver food supplies. Investments in developing countries like Sudan or Pakistan are more speculative in comparison and have been often rather announced than implemented.