IHC Food Holding LLC, a subsidiary of International Holding Company (IHC) based in Abu Dhabi, and DAL Group, have recently entered a joint agreement. The deal is centered upon the development and cultivation of farmland in the Abu Hamad district of River Nile State, Sudan.
Under the joint agreement, IHC Food and DAL Group will invest nearly $225 million to boost the transformation and development of around 100,000acres of farmland in a period of 5 years. The farm is anticipated to have the capacity of producing a maximum annual output of around 400,000 metric tons of the agricultural crops for use in export and consumption purposes.
Following the full development, the farmland will reportedly be able to generate export revenues of approximately $1 billion for Sudan in the next 10 years. In addition, the farmland is likely to create employment opportunities for more than 5,000 people in the country.
As per the statement made by IHC Food’s CEO, Mamoon Othman, the agricultural sector is the key business landscape for the company. It is striving towards reaching its long-term goal of efficiently safeguarding the farm-to-fork supply chains. This new farming project will further help it secure the high-quality agricultural output as well as integrate into the vertical supply chain.
Modern technology and industry leading best practices will be implemented for the project development, which will include automated pivots by using drip-irrigation to lower water wastage. Furthermore, the latest farming technology deployed in the project will increase overall farm productivity. The farmland has the capacity to further expand in terms of scale and size.
DAL Group’s chairman, Osama Daoud Abdellatif, has apparently stated that the company is thrilled to partner with IHC Food to develop the farmland project in Sudan. The project will provide an opportunity for rural areas to develop and invest in technologies that optimize the agricultural methods. It will also help fulfill the company’s target to safeguard the environment and ensure sustainability.