Rafi Agri Foods International FZC, a leading agri-commodity trading firm based in the Sharjah Airport International Free Zone (SAIF Zone) has announced its acquisition of a 20 percent stake in Delta Food Industries (FZC), one of the UAE’s fastest growing food exporters.
A company statement estimated Delta Foods’ exports at over 250 TEUs (twenty-foot-equivalent units) per month, nearly 70 percent up on the number of containers exported by the manufacturer in mid-2014. Delta Foods announced plans to invest AED 40 million (US$ 11m) in expanding its manufacturing and packaging facilities in SAIF Zone in July 2014.
According to the Delta, its expansion is to help ramp up production to meet the growing needs of export markets in the Middle East and Africa. The manufacturer plans to expand into the production of evaporated milk, sterilized cream, and re-packing of other basic commodities such as tea and oats to further grow its business and boost exports.
Delta Foods expects the partnership with Rafi Agri Foods to allow it to leverage new relationships with suppliers around the world and improve competitiveness. Rafi Agri Foods has been a key supplier of Delta Foods since it commenced operations in 2011. Additionally, Rafi Agri Foods’ knowledge and insight into the dairy industry is expected to prove beneficial.
Rafi Agri Foods International FZC was established in 2011, and is a 50/50 joint venture between Rafi International FZC and Canadian firm Ronald. A. Chisholm. Chisholm, one of the world’s largest agri-commodity traders, boasts sales in over 60 countries and a turnover exceeding US$1.5billion (AED 5.5b).
According to the UAE Ministry of Economy, 29% of the country’s manufacturing firms have chosen to locate themselves in Sharjah (2011) and SAIF Zone’s strategic location and proximity to Sharjah International Airport have made it popular with manufacturing, packaging and distribution companies. More than 6,700 companies are registered with SAIF Zone.
Source: Rafi Agri Foods, Delta Foods, SAIF Zone