Pakistani company Organic Meat to export frozen meat to Saudi Arabia in $1 million deal
Organic Meat is the only Pakistani company that exports frozen white and red offal.
The Organic Meat Company Limited (TOMCL) from Pakistan has signed an agreement to export frozen boneless meat worth $1 million to Saudi Arabia.
According to details, TOMCL would supply 250 metric tonnes of meat to Global Developing Food Industries Company (Saudi Arabia) under a ten-month contract.
The TOMCL is the first-ever Pakistani company that has been approved by the Saudi Food and Drug Authority (SFDA) to export frozen meat via sea to the kingdom.
The contract with the Saudi company is hugely beneficial for the Pakistani company, as it is worth around 6.3% of TOMCL’s total sales in the last 12 months.
About the company
TOMCL started production in 2011. Along with frozen boneless meat, it initially exported fresh, chilled beef and mutton.
The company was listed on the Pakistan Stock Exchange (PSX) last year and is now worth almost ₨. 4 billion on the exchange.
It is pertinent to note that foreign sales constitute more than 96% of TOMCL’s total sales.
The company’s customers based in the Middle East are switching from fresh chilled to frozen meat, so the recent contract with the Saudi company is a positive step.
The United Arab Emirates (UAE) is the company’s largest market, accounting for 72% of the total sales.
Meanwhile, TOMCL is the only Pakistani company that exports frozen white and red offal. These are primarily sourced from local suppliers who lack the facilities to process offal.
It is pertinent to note that the Halal food industry, including Halal meat, is worth $3 trillion worldwide.
However, Pakistan —the second most populous Muslim country— only accounts for 3% of the total global Halal meat exports.
The South Asian country should consider expanding its Halal meat exports as there is a huge potential to exploit the Halal food industry.
What are your views on this? Share with us in the comments below.
Go for the Chinese market. It is huge.
Please share source of news as the Saudi company with whom contract has been signed is not big enough to process 250 million ton meat in 10 years and we are talking about 10 months!