ARASCO HistoryIn just over 30 years we have expanded, diversified and played to our strengths to establish our position as KSA’s most prominent food security company.
The Arabic Company for Agricultural Services "ARASCO" (Closed Shareholding company) was established in 1983 and it's ownership goes to a group of Saudi shareholders that are interested in food security and supporting the Kingdoms possibilities back then to build a strong and integrated system that supports the food supply chain in the future. It's main headquarters resides in Riyadh city, it's factories and business sectors are in Riyadh's cities, Kharj, and Dammam.
It started its activity with a limited scope of services and products that were being provided to help the Saudi wheat sector which was prosperous at the time, the company evolved and grown on it's message which is represented in supporting the sustainability of food security in the Kingdom and the region in general; ever since that time, it still is, and it will continue to upgrade it's businesses to keep up with the Kingdoms needs in terms of food.
ARASCO has persisted since it was established on building an integrated system of businesses that allows it to achieve that message; in the beginning of 1987, the company took a strategic decision in expanding its sectors and entering the feeds sector, that required raising the capital by more than four times, and that is to create the first feeds factory in the Kingdom in Al Kharj with a production capacity of 30 tons per hour, and a storage capacity that reaches 50 thousand tons, then it decided to raise the production capacity of the factory by 80% to reach 54 tons per hour , and the in another time, the production has been raised to 100 tons per hour; that was followed by creating silos in King Abdulaziz's port in Dammam for the purpose of raising the adequacy of the supply chain, ARASCO became in 1997 through its first strategic unit "ARASCO Feed" the biggest compound feeds producer with all its kinds in the Middle East and North Africa.
Then ARASCO witnessed great growth and an impressive start since 1997, and it continues to grow until now, as it became one of the most prominent national companies and among the top 100 Saudi companies.
Later on, it created and ran another factory for feeds with a production capacity of 150 tons/hour in Dammam city to help the Kharj factory as a contribution to meet the demand of the local and nearby markets, which made it in the leading positions in terms of compound feed creators in the Kingdom of Saudi Arabia and the region.
ARASCO also created more of the strategic business units that serves its chain of food supply til it reached six units that work in harmony and in sync, to serve the food security in the Kingdom. Those units are (ARASCO Feed, ARASCO Poultry Products, ARASCO Logistics, MEFSCO, IDAC Merieux, Al Emar International for agricultural and veterinary inputs).
And the decision to acquire "Al Emar company international for chemicals and veterinary" in 1997 to provide services and consultations to local farmers as well as providing agricultural and veterinary products, feed inputs for the poultry, dairy, and cattle sectors was an important step in supporting the companies capabilities and its leading role in achieving food security support.
And in the same year, ARCHEM factory for phosphate creation has been established to serve feed production which serves ARASCO and other businesses in the region.
Likewise, ARASCO Poultry Products which is considered one of the essential producers for broiler chickens under the trade mark "Entaj" in the Kingdom, which markets as Saudi chicken Made Right of high quality and has that special taste, it's production in 2020 was about 250 thousand birds daily.
And the same period has witnessed the creation of IDAC Merieux analytical laboratories to raise the food quality standards, it's security and safety to serve the livestock, agricultural, and food sectors in the Kingdom. In 2014, ARASCO reinforced its position by making a strategic partnership deal with IDAC Merieux Nutrisciences international company, whereas IDAC Merieux laboratories were created, which supports many companies and factories in the Kingdom.
And ARASCO for corn products was created, which is the only factory for just corn products (Starch, Fructose, Glucose) in the Kingdom of Saudi Arabia and gulf countries, then ARASCO signed the strategic alliance treaty with Cargill company, which restructured the corn products sector and since then, in 2013, the first mutual project for starch and its derivatives of sweeteners in the Kingdom of Saudi Arabia under the name Middle East Food Solutions Company (MEFSCO).
And ARASCO Logistics which provides integrated logistic solutions for strategic business units that belong to the company and other clients, and that is through one of the biggest fleets in the Kingdom whether it be trucks or freight trains; and by using trains, ARASCO succeeded in saving the power, lowering the pollution, lowering the use of public roads, lowering the amount of accidents that the trucks might cause on the roads. By 2012, ARASCO made a strategic deal with Al Bahri company, one of the biggest companies for nautical transportation in the world, for protecting and ensuring the flow of raw foods smoothly, without any problems, going by competitive prices that support its competitive edge both locally and regionally
Where Al Bahri company for transporting bulk goods runs (which is the mutual project between ARASCO and AL Bahri) since 2013 runs 5 ships that are considered the most recent, each being capable to carry 80 thousand tons of food sources that are imported from the best sources around the world, all while an increase in the nautical fleet is being planned within this partnership to 20 ships in the future.
And within its efforts to come up with products that serve its strategies to grow and support water safety, the feeds team did in depth studies and experiments to produce the whole cattle feed (Wafi) which makes the cattle owners don't need to purchase concentrated feeds (Barley) and green feeds (Clover); And is marketed under the slogan (Wafi alone is enough). It is available in multiple types that suits many animals and their age groups. ARASCO's role in whole feed production is an effective contribution in providing around 3 billion cubic metres annually of water that would have been used in growing feeds in the Kingdom.
ARASCO has focused its efforts to grow the logistics, management, and the financial availability. getting the support from the most updated programs in the systems. In addition, it worked to support the commercial arms of ARASCO by linking between the different departments. All of the aforementioned happened during our path toward Expansion and focusing on quality, according to the international tests of the quality. not to mention, ARASCO has accomplished the certificate of ISO 14001 in the environment, and the OSHAS 18001 in the safety, and we are running to make every unit achieve the certificate they belong to, according to the international standards. Lastly, in the field of comprehensive quality, ARASCO Feed, ARASCO food, MEFSCO, IDAC are having ISO 22000:2005.
Nowadays, ARASCO is working on being the main empower to the supply chain of food in the whole region, by the end of 2020. That is according to our plan of expansion. In the same path, ARASCO has raised the power of producing hays during 2015 to produce 4 million tons yearly. The availability of storing for silos has also increased to achieve 450,000 metric tons. lastly, the availability discharging these silos.