Wadi Group: A Powerhouse in Agribusiness - Key Subsidiaries, Brands, Sectors Revealed

Updated 3/26/2024 8:00:00 AM
Wadi Group: A Powerhouse in Agribusiness - Key Subsidiaries, Brands, Sectors Revealed

Arab Finance: Egypt's poultry industry is a cornerstone of the nation's agribusiness and food processing sector. It plays a vital role in ensuring food security for millions.

With its potential to emerge as a global supplier of quality food products, the industry serves as a key driver of Egypt's gross domestic product (GDP), with the private sector assuming a pivotal role in its continued growth.

So, Arab Finance interviewed Tony Freiji, Executive Chairman of Wadi Group, a prominent player in the Egyptian food and beverage industry.

With a rich heritage deeply rooted in poultry farming, Wadi Group has expanded its operations to encompass various sectors, showcasing a commitment to excellence and innovation.

In our interview, we delve into the group’s journey, vision for growth, and unwavering commitment to driving positive change in Egypt's poultry industry and beyond.

1-How has Wadi Group grown since its establishment in 1984 to become a major player in the Egyptian food and beverage industry?

Wadi Group's journey began in 1984 with the Noubaryah poultry farm, steadily evolving into a major player in Egypt's food and beverage industry. This growth can be attributed to several factors:

  • Vertical Integration: Wadi Group adopted a vertically integrated model, controlling the entire poultry production chain, from feed mills and hatcheries to processing plants and distribution networks. This ensured efficiency, quality control, and cost-effectiveness.
  • Diversification: Expanding beyond poultry into sectors, mitigating risks, and capitalizing on new opportunities.
  • Innovation: Continuous investment in research and development led to improved product quality, packaging, and marketing strategies, keeping Wadi Group ahead of the curve.
  • Customer Centricity: Wadi customers are the focal point for all decisions, ensuring they always receive the highest quality products and services.

2-Wadi Group has a rich heritage and expertise in the agribusiness industry. Could you elaborate on the group's key subsidiaries, brands, and the sectors it operates in?

Wadi Group possesses a rich heritage in the poultry industry, as evidenced by its key subsidiaries and brands:

  • Wadi Poultry: Serving the flagship company responsible for breeding day-old broiler chicks, parent stocks, and grandparent stocks in the Egyptian poultry industry under the well-known brand name “Katkoot Al Wadi”.
  • Wadi Food Industries: This arm is dedicated to supplying natural and healthy products at affordable prices to consumers across the Middle East while ensuring the highest standards of quality, freshness, and excellence. “Wadi Food” is responsible for every stage of production, starting from the farm to the packaging facilities and distribution.

Wadi Food offers a diversified range of high-quality food products, starting from extra virgin olive oil, frozen chicken, pickled olives, tomato paste, olive paste, pickled vegetables, vinegar, and recently different kinds of canned specialty beans and frozen vegetables.

  • Animal Nutrition: It is the industrial division of Wadi Group, created to support the core operations in the poultry sector. They manufacture poultry and large animal feed, feed additives, and ingredients, as well as handle grain logistics. They also manufacture cooling cell pads for poultry wards and greenhouses.

This division prioritizes clean energy and environmental sustainability. Their brands include A’laf Al Wadi, Tabreed, and Idafat.

3-How does Wadi Group strive to bring positive change to the businesses it operates in? And how does it align with its slogan "To achieve. To lead"?

Wadi Group strives for positive change through various initiatives:

  • Product Quality and Safety: Stringent quality control measures and adherence to international standards ensure safe and healthy food products. Wadi Group companies are all ISO certified, and food operations are BRC accredited with ‘A’ rating among other important food safety certifications.
  • Sustainability: Implementing eco-friendly practices like solar power usage and water conservation reduces environmental impact.
  • Employee Development: Investing in employee training and well-being fosters a productive and engaged workforce.
  • Community Engagement: Supporting local communities through educational programs and job creation. Wadi Group is committed to gender diversification in its workforce.
  • Health and Safety: Training and monitoring proper occupational health and safety is the highest priority of the group leadership, and all measures are taken to ensure a safe workplace setting with a sustainable impact on the environment.

The "To Achieve. To Lead." slogan reflects Wadi Group's commitment to continuous improvement, innovation, and industry leadership.

4-How did Wadi Group's recent projects contribute to the advancement of the agribusiness sector and the communities it serves?

Wadi Group plays a significant role in developing the Egyptian poultry sector:

  • Increased production and affordability: Wadi’s large-scale operations contribute to readily available and affordable poultry products for the Egyptian population.
  • Supporting local farmers: Contracts with local farmers for feed production and poultry breeding enhance productivity and improve the livelihood of the farmers.
  • Employment generation: Creates direct and indirect job opportunities across the poultry value chain.
  • Technology transfer and know-how: Wadi introduces advanced poultry farming and processing techniques through direct implementation and knowledge sharing through the “Wadi Poultry Academy”. This helps in spreading knowledge and trends in the poultry industry.

5-What are the current and future priorities for Wadi Group in terms of business expansion, innovation, and sustainability initiatives?

Here is a glimpse of Wadi Group's recent poultry sector initiatives and future plans:

  • Developing new and modern poultry production farms in Toshka, among other sites, to improve efficiency and chicken quality.
  • Launching new poultry products and value-added consumer goods.
  • Expanding distribution network, thus reaching more customers across Egypt and exploring export opportunities.

These initiatives demonstrate Wadi Group's commitment to continuous improvement, innovation, and responsible business practices.

6-How does Wadi Group ensure the quality and safety of its food products? And what is Wadi Group’s best seller?

Wadi Group prioritizes quality and safety through:

  • Stringent quality control measures and biosecurity systems: Regular testing at all stages of production ensures adherence to international food quality and safety standards.
  • Modern processing facilities: Employing state-of-the-art technologies and hygiene protocols guarantees product safety.
  • Traceability system: Tracks products throughout the supply chain, enabling swift identification and resolution of any issues.

"Wadi Food brand" has won several international awards and is recognized for its consistent quality, affordability, and wide product range.

7-How does Wadi Group address the challenge of food security in the Middle East and Egypt, particularly in light of the region's rapidly growing population and the impacts of climate change on agriculture?

Wadi Group addresses food security challenges through:

  • Promoting sustainable poultry farming: Implements water conservation and waste management practices to minimize environmental impact.
  • Using environmental methods in production: Minimizes waste and manages sustainable output.
  • Investing in feed production: Ensures a stable supply of high-quality feed for poultry, reducing dependence on imports.
  • Supporting local communities: Contributes to rural development and empowers farmers, strengthening the food supply chain.

8-Finally, what are the company's long-term goals and vision for the agribusiness sector? And how does it plan to achieve and lead in the years to come?

Wadi Group envisions itself as a leading driver of sustainable and inclusive growth in the Egyptian poultry sector and the food industry in general, aiming to:

  • Expanding market share and geographical reach by consolidating the company’s position in Egypt and exploring export opportunities in the region and beyond.
  • Driving innovation and product diversification via developing new value-added poultry products that cater to evolving consumer preferences and dietary needs.
  • Investing in human capital to foster a culture of continuous learning and development for employees at all levels.
  • Expanding product range for Wadi food portfolio.
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