Balady Poultry approval locks supply terms for 2026

Shareholders of Balady Poultry Trading Co. approved supply contracts with Almunajem Co. for the 2026 fiscal year. The vote took place at the company's annual general meeting, covering transactions for feed and chicks, two critical inputs for poultry production.

Almunajem is a Saudi conglomerate with interests in agriculture, logistics, and retail. It serves as a key supplier to Balady Poultry. The approval is a routine corporate governance step required under Saudi Capital Market Authority rules for related-party deals. Companies listed on the Saudi exchange must disclose such contracts and obtain shareholder approval if they exceed certain thresholds.

The contracts lock in supply pricing and volumes for a full fiscal year. For Balady Poultry, that means predictable input costs, a common strategy in the livestock industry to manage volatility in corn and soybean markets. The agreement also ties Balady to a single supplier for an extended period. If feed costs drop, Balady would not be able to renegotiate lower rates.

Balady Poultry is a Saudi joint stock company established in 2003. It produces fresh and frozen chicken, chicken nuggets, burgers, and other processed products. The company sells through retailers, wholesalers, and foodservice channels across the kingdom. It operates hatcheries, feed mills, and slaughterhouses. The poultry sector in Saudi Arabia has grown under government food-security initiatives. Domestic production now meets a large share of demand. The new agreements with Almunajem ensure continuity for one of the company's largest supply relationships.