Almarai Co has bought 1,800 acres in California to produce alfalfa to feed its 75,000 cows in Saudi Arabia.
The company, which was originally set up by Antrim men Alastair and Paddy Mc Guckian, of Masstock, paid $17,000 (€15,640) per acre for the land in one of the most drought-prone states in the US. California is in its fourth year of drought, forcing businesses and residents to cut water consumption.
Food costs set to increase
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The land purchase is part of the company’s strategy to secure quality feed from outside Saudi Arabia and it already owns land in Arizona.
Saudi Arabia is phasing out the cultivation of green fodder over the next few years because of the strain on water in the country.
It is estimated that Almarai’s feed costs will increase by 200m riyals (€48.76m) this year because of the fodder restriction. This figure will increase each year until the company has to import all of its fodder requirements.
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Almarai Co has bought 1,800 acres in California to produce alfalfa to feed its 75,000 cows in Saudi Arabia.
The company, which was originally set up by Antrim men Alastair and Paddy Mc Guckian, of Masstock, paid $17,000 (€15,640) per acre for the land in one of the most drought-prone states in the US. California is in its fourth year of drought, forcing businesses and residents to cut water consumption.
Food costs set to increase
The land purchase is part of the company’s strategy to secure quality feed from outside Saudi Arabia and it already owns land in Arizona.
Saudi Arabia is phasing out the cultivation of green fodder over the next few years because of the strain on water in the country.
It is estimated that Almarai’s feed costs will increase by 200m riyals (€48.76m) this year because of the fodder restriction. This figure will increase each year until the company has to import all of its fodder requirements.
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