Saudi dairy giant spends $83M on Argentina farms

notafarmer

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By Adam Schreck

DUBAI, United Arab Emirates?Saudi Arabia's largest dairy company said Wednesday it is buying Argentine farm operator Fondomonte S.A. for $83 million to secure access to a supply of animal feed.

The acquisition will give Riyadh-based Almarai Co. control of roughly 30,000 acres of farmland in the South American nation just ahead of tough new limits likely to be imposed by Argentina's government on foreign ownership of productive land.

Almarai said the deal is in line with the desert kingdom's policy of "securing supplies and conserving local resources."

Despite its scorching desert climate, Saudi Arabia for decades produced millions of tons of homegrown wheat with the help of generous farm subsidies. It is now trying to wind down domestic production because of concerns over dwindling water supplies.

Read more at http://www.boston.com/business/articles/2011/12/21/saudi_dairy_giant_spends_83m_on_argentina_farms/
 
 
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