Now Reading: Pakistani Company Wins $3.9 Mil Contract to Export Meat to Saudi Arabia
In a notice to the Pakistan Stock Exchange (PSX), the Organic Meat Company Limited (TOMCL) – a major halal meat exporter to Saudi Arabia and the United Arab Emirates (UAE) – announced on Monday that it has won a high-value contract to export meat to the Kingdom of Saudi Arabia (KSA). This makes it so the organization has become the first Pakistani company that has been approved by a multinational food processing firm for meat supply.
As per details, the contract was signed with the multinational company called “National Food Company”. “TOMCL has been contracted to supply frozen boneless meat to National Food Company (Americana), which is one of the most successful organizations in the Middle East. The group is considered one of the largest food manufacturing and distributing companies in the region,” read the company’s statement to PSX.
“We would like to inform you that The Organic Meat Company Limited has secured a high value contract for supply of frozen boneless meat with a multinational customer in Saudi Arabia,” the company said to the Pakistan Stock Exchange (PSX). The Organic Meat Company added that the signed contract was worth approximately $3.9 million. Under this, the company would be exporting 100 metric tons of frozen boneless meat every month for a year through sea routes to Jeddah.
Along with being the first ever company to be approved for multinational meat supply, the company has also received an approval from the Saudi Food and Drug Authority (SFDA). As noted by Its management officials, this export contract with a key market player in Saudi Arabia is bound to boost trust among even more foreign food processors.
Long-lasting Positive Effects for the Market
There is no doubt that this contract will serve as a mark for future investments. Faisal Husain, the Organic Meat Company’s founder and chief executive officer, stated about this contract;
“It is good for Pakistan because it will increase the confidence of foreign food processors since this export contract implies that there are such companies in Pakistan who can supply quality meat to them. This will also increase the share of Pakistani meat products in the Saudi market.”
As per the multiple statements expert analysts in the market, despite the coronavirus pandemic, food exports from Pakistan have consistently shown improvement and meat exporters are to credit for it. This is very much true as Pakistan’s exports of meat and meat preparations stood at $103 million during the July-October 2020 period, as per the Pakistan Bureau of Statistics. In terms of quantity, the exports were 20 percent higher than the same time frame of last year.
“We have seen improvement in many export-oriented sectors in the past few months. Despite the virus, exports have improved in food and a few other sectors. Pakistan has a huge potential to export meat. The Organic Meat Company, being one of the largest meat exporters, is playing a key role,” said Muhammad Sohail, chief executive officer of Topline Securities
As for the Organic Meat Company’s origin, the company was incorporated in 2010 and raised about Rs800 million from initial public offering (IPO) at PSX. This led to it setting up two new facilities to process and export offal to far eastern markets. Based mainly in Karachi, the company’s facilities are approved to supply products to Kingdom of Saudi Arabia, United Arab Emirates, Bahrain, Maldives, Hong Kong, Kuwait, Oman, Qatar and Vietnam.