Baladna signs pact with Suez Canal Authority

Baladna QPSC signed a memorandum of cooperation with the Suez Canal Authority, aimed at enhancing collaboration in the field of food security.

The agreement was signed by Major General Wissam Al Diasti, Advisor to the Chairman of the Authority, and on behalf of Baladna Company, Malcolm Jordan, CEO of Baladna.

The agreement involves exploring the development of a substantial cattle farm with a capacity of 20,000 dairy cows and reinforcing dairy production, as well as cultivating an extensive 113,000-hectare expanse in the New Valley Governorate El Wadi El Gedidto meet the project’s requirements for feed and agricultural products for both local consumption and export.

The signing ceremony took place in Cairo and was attended by Prime Minister of Egypt HE Dr Mostafa Madbouly,in addition to key representatives from Baladna, including members of the Board of Directors and the Executive Management, led by Ramez Al-Khayyat, Managing Director and Board Member of Baladna. The ceremony was also attended by Qatar's Ambassador to Egypt HE Tariq Al Ansari, Governor of New Valley Lieutenant General Mohamed Salman Al Zamlout, Minister of AgricultureEl Sayed El Quseir, Minister of Local DevelopmentLieutenant General Hisham Amna, Chairman of the Suez Canal AuthorityLieutenant General Osama Rabie, and Advisor to the Chairman of the Authority Lieutenant General Wissam Aldiasty.

The agreement covers the initial areas of cooperation for dairy production and manufacturing in Egypt, with an investment volume of up to $1.5bn. It includes the development of a cattle farm with an initial capacity of 20,000 dairy cows, with an aim to produce an annual capacity of 300 million litres of fresh milk. Furthermore, it outlines the cultivation of 113,000 hectares of land in the New Valley Governorate El Wadi El Gedid, to supply the necessary fodder and agricultural products to meet the project's requirements, both for local use and export.

Dr Madbouly highlighted the agreement's potential in supporting food security through dairy products, generating job opportunities for the youth in Egypt, and reducing the cost of external imports using foreign currency. He also directed all relevant ministries to facilitate the necessary procedures to commence the practical steps to implement the memorandum of cooperation, reinforcing the government's unwavering support for the project's success, which aligns with Egypt's broader efforts in promoting food industry localization, agricultural development, land reclamation, as well as knowledge and technology transfer.

Chairman of the Suez Canal Authority Lieutenant General Osama Rabie emphasized that the Suez Canal is progressing towards diversifying its sources of income and utilizing its savings surplus within its allocated share in the state's general budget by entering partnerships for large-scale projects that support the state's efforts towards enhancing food security and achieving self-sufficiency.

Additionally, CEO of Baladna Malcolm Jordan, said: "We are eager to collaborate with the Suez Canal Authority on this promising project, as well as express our sincere gratitude for the Authority's constructive cooperation, which has paved the way for us to turn these discussions into a tangible and practical reality."