SALIC

The Saudi Agricultural and Livestock Investment Company (SALIC), fully owned by the Public Investment Fund of the Kingdom of Saudi Arabia, was established by Royal Decree in 2009 with a paid-up capital of 30 billion Saudi riyals. Its strategic mandate is to secure food supplies for the Kingdom by investing in agricultural and livestock production globally. This involves investing in countries with competitive advantages in specific food commodities. The company's core business revolves around making long-term investments in the agribusiness sector, targeting a portfolio of specialized companies.

SALIC's investment strategy is diversified, focusing on a dozen basic food commodities including wheat, barley, corn, soybeans, rice, sugar, vegetable oils, green fodder, red meat, poultry, dairy products, and aquaculture. The company operates through a model of direct and indirect investments, which includes acquisitions, partnerships, and greenfield projects. For instance, SALIC has made significant investments globally, such as acquiring a substantial stake in the Australian Agricultural Company and partnering with Minerva Foods in Brazil, one of South America's largest meat producers. In 2022, SALIC, through its subsidiary SALIC Australia, acquired the a strategic 9.99% stake in the Australian Agricultural Company (AACo). Furthermore, SALIC acquired Baldwin Company for Grains, one of the largest grain companies in western Ukraine. Through a joint venture with the National Grain Company, SALIC has also developed a grain terminal at Yanbu Commercial Port to enhance the Kingdom's grain distribution capabilities.

The company's operations are guided by the Kingdom's food security strategy, contributing to the stability of food commodity prices in the domestic market. Revenue is generated from the returns on its global investments and the sale of agricultural and livestock products. SALIC's approach involves managing a global portfolio of investments that contribute directly to the import of essential food products into Saudi Arabia, thereby fulfilling its primary objective of enhancing national food security. Keywords: food security, agribusiness investment, livestock, agriculture, commodity trading, global supply chain, public investment fund, strategic investment, food production, international agriculture