Tanmiah Food Company, Tyson Foods Strengthen Strategic Partnership at Saudi Event

Part of the meeting between Saudi-based Tanmiah Food Company and US-based Tyson Foods, Inc. Asharq Al-Awsat
Part of the meeting between Saudi-based Tanmiah Food Company and US-based Tyson Foods, Inc. Asharq Al-Awsat
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Tanmiah Food Company, Tyson Foods Strengthen Strategic Partnership at Saudi Event

Part of the meeting between Saudi-based Tanmiah Food Company and US-based Tyson Foods, Inc. Asharq Al-Awsat
Part of the meeting between Saudi-based Tanmiah Food Company and US-based Tyson Foods, Inc. Asharq Al-Awsat

Saudi-based Tanmiah Food Company and US-based Tyson Foods, Inc. met this week in Jeddah to recognize their strategic partnership made in 2022 including the potential growth opportunities across the Kingdom and the Middle East.

The event was held by the Chairman of Tanmiah Food Company, Amr Al-Dabbagh, and joined by Saudi government guests, in addition to the US Consul General in Jeddah and the Commercial Counsul, and a number of private sector officials.

The partnership is well positioned to help sustainably meet the growing demand for poultry in the Kingdom, while also supporting Saudi Arabia’s food security goals and economic growth.

The companies discussed the growing Halal food market and the opportunities it presents to unlock future growth for the partnership. Both companies also discussed future expansion plans to increase the processing capacity of the Supreme Foods Processing Company. As per the partnership agreement, Tyson Foods and Tanmiah will be jointly investing in the expansion of further processing capacity. The expansion is anticipated to increase the total production capacity of Supreme Foods Processing to nearly 100,000 metric tons annually.

“It was an honor to welcome our partners at Tyson Foods to the Kingdom as we build momentum following the recent signing of our strategic partnership that will unlock growth across the Kingdom and improve access to high-quality processed poultry products. We also believe the partnership strengthens our commitment to supporting the Kingdom’s food security and self-sufficiency goals,” said Tanmiah’s CEO Zulifqar Hamadani.

Executive Board Member & Managing Director Ahmed Osilan said: “This partnership will contribute to food security goals and bring global expertise, standards and technology to the Saudi poultry market, supporting the Kingdom’s non-oil economy while also generating hundreds of jobs.”

Tyson Foods President, International and Chief Administrative Officer Amy Tu said that a key part of his company’s strategic plan is to meet the growing global demand for protein and to serve customers and consumers with products tailored to the local market and region.

He said the partnership with Tanmiah Food “will allow us to address that plan, especially the growing demand for Halal food. We are excited to build a long-term partnership and drive future economic activity in the Kingdom.”

As for TAN Sun, President, Tyson Foods Asia Pacific, he said: “We are committed to working together to drive operational excellence and deliver high-quality poultry products across the region. We are aligned on the need for future expansion across the value chain and improvements to production processes. We look forward to further collaboration.”



Oil Prices Slip as Russia Sanctions Stay in Focus

FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo
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Oil Prices Slip as Russia Sanctions Stay in Focus

FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo

Oil prices slipped on Tuesday from the previous day's four-month highs but the market remained supported by continuing focus on the impact of new US sanctions on Russian oil exports to key buyers India and China.

Brent futures were down 58 cents, or 0.72%, to $80.43 a barrel by 1421 GMT, while US West Texas Intermediate (WTI) crude fell 62 cents, or 0.79% to $78.20 a barrel, Reuters reported.

Prices jumped 2% on Monday after the US Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that transport oil as part of Russia's so-called shadow fleet of tankers.

"With several nations seeking alternative fuel supplies in order to adapt to the sanctions, there may be more advances in store, even if prices correct a bit lower should tomorrow's US CPI data come in somewhat hotter-than-expected", said Charalampos Pissouros, senior investment analyst at brokerage XM.

While analysts were still expecting a significant price impact on Russian oil supplies from the fresh sanctions, their effect on the physical market could be less pronounced than what the affected volumes might suggest.

ING analysts estimated the new sanctions had the potential to erase the entire 700,000 barrel-per-day surplus they had forecast for this year, but said the real impact could be lower.

"The actual reduction in flows will likely be less, as Russia and buyers find ways around these sanctions," they said in a note.

Nevertheless, analysts expect less of a supply overhang in the market as a result.

"We anticipate that the latest round of sanctions are more likely to move the market closer to balance this year, with less pressure on demand growth to achieve this," said Panmure Liberum analyst Ashley Kelty.

Uncertainty about demand from major buyer China could blunt the impact of the tighter supply. China's crude oil imports fell in 2024 for the first time in two decades outside of the COVID-19 pandemic, official data showed on Monday.