Cargill and Arasco agree Middle East joint venture

By Caroline Scott-Thomas

- Last updated on GMT

The JV will include production of HFCS
The JV will include production of HFCS
Cargill has said it intends to create a new sweeteners and starches joint venture in Saudi Arabia with agri-business firm Arasco, saying it will give the company a foothold in the fast-growing Middle East and North African market.

The deal is subject to regulatory approvals, but if finalised, Cargill will own 20% of the JV, while Arasco will take an 80% stake and management control.

Cargill executive vice president Frank van Lierde said that the Middle East region was the highest growth area for the food and drink industry in the world.

“The rapidly changing demographics in the region and the growth of consumer choice means that this joint venture will be well placed to help our customers meet this rapidly developing market,”​ he said.

“By partnering with Arasco and combining the strengths of both our companies, this joint venture will not only help us create enhanced solutions for our customers but most importantly local solutions.”

The companies have agreed that the JV would acquire Arasco’s corn milling plant in Al Kharj with the aim of tripling production to produce starch-based products primarily for countries in the Gulf region. Cargill said that the increased production would help meet growing demand across the region from confectionery, juice, bakery and catering companies.

Adding HFCS production

In addition, the companies said that they would more than double capacities for glucose and starch production and begin production of high fructose corn syrup (HFCS) “to serve the growing food and beverage industry in the Kingdom of Saudi Arabia.”

Arasco CEO Dr Abdulmalik Alhusseini welcomed the JV as an opportunity to expand its range of ingredients.

“Through this joint venture, we can expand our facilities more quickly and launch new products, such as HFCS to the Kingdom of Saudi Arabia,”​ he said.

As Cargill’s first move into Saudi Arabia, the company said the JV could help it discover further opportunities for growth in the region, in response to consumer demand.

Related news

Show more

Related products

show more

Download Raw Beet Sugar Product Flyer by Südzucker

Download Raw Beet Sugar Product Flyer by Südzucker

Content provided by Südzucker AG | 18-Sep-2024 | Product Brochure

European consumers are increasingly focusing their purchase decisions on products that contain natural, regional and less-processed / less-refined ingredients.

Download Sweet Trends Report 2024 by Südzucker

Download Sweet Trends Report 2024 by Südzucker

Content provided by Südzucker AG | 01-Jul-2024 | White Paper

For the fourth time, Südzucker has conducted a research study on consumer needs and purchase drivers in processed food & drinks, which will be another...

Your partner in plant-based meat alternatives

Your partner in plant-based meat alternatives

Content provided by ADM | 15-May-2024 | White Paper

Harness our technical expertise and world-class portfolio of high-quality ingredients and formulations to create elevated, chef-driven, plant-based meat...

Related suppliers

Follow us

Products

View more

Webinars