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Germany’s BayWa and Al Dahra expand their value chain with €30 million agribusiness in Abu Dhabi

Abu Dhabi - United Arab Emirates

March 7th, 2017

Munich/Abu Dhabi, March 07, 2017 –, The German-based BayWa AG, with agriculture as one of its core businesses, has tied up with the Abu Dhabi-based Al Dahra Holding LLC, a leading international agribusiness company, to set up a ground-breaking project in the UAE.

 

BayWa AG and Al Dahra Holding LLC today unveiled the €30 million project. The new entity, Al Dahra BayWa LLC, will operate in the production of premium vegetables like tomatoes using latest greenhouse technologies as well as in the marketing of the produce in the seven-emirate federation, as well as potential regional markets. This contract is subject to approval by the competent authorities in the UAE.

 

Spending power in the UAE on fruit and vegetables from regional and sustainable production is strong and the country has a healthy market for premium fruits and vegetables. Al Dahra BayWa LLC will have its headquarters in the UAE capital, Abu Dhabi.

 

Commenting on the new company, HE Khadim Abdulla Al Derei, Vice Chairman & Managing Director of Al Dahra Holding LLC, said: “We are pleased to make this announcement which comes as part of the strategy of food security in the UAE and contributes to consolidating our initiatives in that direction”.

 

“Al Dahra BayWa LLC has a great potential for growth in the region, and we are confident that this collaboration has the elements of success in this continuously growing business segment”, he added.

 

The joint venture is part of the specialties strategy in BayWa's Agriculture Segment. "Through our trade network, we have identified the United Arab Emirates as a very profitable market with a large growth potential", explained Klaus Josef Lutz, the Chief Executive Officer of BayWa AG. "On an international scale, we are observing a growing interest to close the value chains between from growers to consumers – this development is reflected in our decision-making." Mr. Lutz emphazised that BayWa does not refer to standard products like wheat, corn and soy when talking about the expansion of its value chain, but instead focuses exclusively on special products for a profitable market segment in regions with strong growth in order to diversify its agricultural business.

 

The climate-controlled greenhouse will be constructed on a site with an area of 15 hectares. In a first step, the venture will produce up to 5,000 tons of premium tomatoes per year to be marketed to local food retailers. In the controlled climate of the facilities, vegetables can be harvested throughout the year. Water-efficient technologies will be used, and compared to traditional greenhouses, the system will save 60 percent of water used for irrigation.

 

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Al Dahra Holding

Abu Dhabi, United Arab Emirates

T :+971 2 6565000
F :+971 2 6565001
E :media@aldahra.com

200K acres

land portfolio including leased and owned land across various geographies

20+ countries

with established operations spread across the Northern and Southern globe hemispheres

30+ entities

trading in various commodities across the Human Food and Animal Feed divisions

1B+ USD

annual group turnover

51%

group average CAGR over the past 5 years

1M MT

group annual grains processing, trading and supply capacity

2M MT

group annual forage production and supply capacity

150K MT

group annual fruits and vegetables farming and supply capacity

#1

customer of Khalifa port in the United Arab Emirates

Etihad Mills

Grain biggest trading hub in the Middle East, that can cater to 2.4 Billion people.

Al Dahra ACX Global

Al Dahra ACX Global number 1 forage exporter in the USA for 2015