Balady Poultry commissions US$7M feed mill to boost production capacity and efficiency

SAUDI ARABIA – Balady Poultry Company has completed and commissioned a new feed mill equipped with three production lines and a total capacity of 60 tonnes per hour, as the company expands its operations and strengthens its role in the poultry value chain.

The facility was developed in partnership with Famsun, a global supplier of feed and grain processing technologies, and represents an investment of approximately US$7 million.

The new mill is designed to improve production efficiency and ensure a more consistent supply of high-quality poultry feed. 

With three advanced production lines, the facility is expected to support increased throughput and improved formulation control, both critical to modern poultry production systems.

Feed remains the largest cost component in poultry production, typically accounting for up to 70% of total costs. 

As a result, investments in feed milling infrastructure are closely linked to profitability, animal performance and supply chain stability. 

By increasing internal feed production capacity, companies can reduce reliance on external suppliers and better manage input costs.

Balady Poultry said the financial impact of the new facility is expected to be reflected from the second quarter of 2026, supporting the company’s growth trajectory. 

The investment also aligns with broader industry efforts to improve feed efficiency and scale production to meet rising demand for poultry products.

Feed milling investments accelerate across emerging markets

The development reflects a wider trend across Africa and the Middle East, where poultry producers are investing in modern feed mills to strengthen vertical integration and improve operational control.

In Saudi Arabia, Almarai has continued expanding its integrated poultry and feed operations, including high-capacity feed mills designed to support large-scale broiler production and reduce reliance on imported feed.

Similarly, in Nigeria, Olam Agri has expanded its feed milling capacity in recent years, adding new production lines to meet rising demand from the country’s fast-growing poultry sector.

These investments are responding to structural shifts in the feed industry. 

Across MEA, demand for compound feed is steadily increasing, driven by population growth, urbanisation, and rising consumption of poultry meat and eggs.

At the same time, producers are under pressure to improve efficiency amid volatile input costs. 

Modern feed mills with higher automation, precision dosing and improved energy efficiency are becoming essential to remain competitive.

Industry data shows that feed production across Africa is estimated at over 50 million tonnes annually, with poultry accounting for the largest share. 

However, capacity gaps persist in several markets, particularly in East and West Africa, where demand continues to outpace supply.

Balady Poultry’s new feed mill highlights this shift, positioning the company to increase efficiency, support production growth and contribute to a more resilient poultry sector.

Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World, and follow us on our WhatsApp channel for updates.