Fresh fruits and vegetable pieces.
The “Fresh for Every Home” project aims to create a comprehensive network for the supply of fresh fruits and vegetables, adopting advanced methods of growing, harvesting, and distributing products. The project includes the following:
Selection of fruits and vegetables: A variety of local and imported fruits and vegetables are selected, with a focus on quality and freshness.
Collaboration with local farmers: Partnerships are established with local farmers to ensure the supply of fresh produce and support the local economy.
Modern packaging processes: Using advanced packaging techniques that keep products fresh during transportation and distribution, ensuring they reach consumers in the best condition.
Efficient distribution: Building an integrated distribution network that covers all parts of the Kingdom, with delivery to supermarkets and retail outlets on a regular basis.
Study content
Rationale for choosing the project
Innovative farming techniques: The move toward innovative farming techniques to address water scarcity and reuse wastewater makes agricultural production more sustainable and increases the availability of fresh fruits and vegetables.
Demand for healthy foods: Growing awareness of healthy lifestyles is driving consumers to consume fruits and vegetables that are rich in vitamins, minerals, fiber, and antioxidants that help prevent disease.
Food processing and packaged foods: Increasing the size of the local food manufacturing and packaged food industries requires the continuous availability of fresh fruits and vegetables as a key ingredient in many products.
Consumer preferences: High consumption of fruits and vegetables is driven by consumer preferences for fresh and healthy foods, which increases the demand for these products in the local market.
Demand analysis
Government support: Government support for agricultural projects and environmental initiatives promotes the expansion of agricultural production and increases the availability of fresh fruits and vegetables in the local market.
Sector Diversity: Providing fresh fruits and vegetables to different consumer segments, including food manufacturers, retail outlets, supermarkets, restaurants, and hotels, contributes to sustainable demand for these products.
Nutritional awareness: Growing nutritional awareness among the population about the benefits of eating fresh fruits and vegetables is boosting the demand for them as part of a balanced and healthy diet.
Improved income levels: As incomes and living standards improve, consumption of fresh fruits and vegetables as an essential component of the daily diet increases.
Increasing population: Continued population growth is increasing the demand for fresh fruits and vegetables to meet the needs of the growing population.
Financial indicators
Capital: The initial capital for the project is SAR 5 million, making it a medium-sized project in terms of investment. This amount can be allocated to cover the costs of purchasing equipment, providing agricultural space, and securing logistics for distribution and marketing.
Rate of return (19%): The high rate of return on investment reflects the good financial viability of the project. With this rate, the project is expected to generate significant annual profits, enhancing the project’s ability to expand and maximize returns in the future.
Expected returns: If the return is 19% per year, the investor can expect to make between SAR 950,000 to SAR 1,050,000 per year based on the capital invested.
Investment advantages
High sustainability: Investing in fresh fruits and vegetables is a sustainable option due to the high need for these products worldwide, ensuring continuity of demand.
High yield: This is one of the projects that offers opportunities for high returns due to the market trend towards healthy and natural products.
Government incentives: The Saudi government supports food security projects and investment in the agricultural sector, which may provide financial support or tax incentives.
Stable returns: With the ongoing trend towards healthy food consumption, investing in this sector is one of the investments with stable returns.
Export growth opportunities: Products can be exported to Gulf markets and other countries, increasing income and providing an opportunity to expand the business.
Features of the project
High market demand: There is a constant demand for fresh fruits and vegetables, especially in local and international markets, due to growing health awareness and the importance of balanced nutrition.
Contribution to food security: The project contributes to providing healthy and nutritious food products to the local market, which enhances sustainability in the food supply chain.
Product diversity: The project includes a wide range of fruits and vegetables that can meet the needs of different categories of consumers, which enhances the project’s competitiveness in the market.
Added value: Added value can be added to the products through innovative processing such as packaging, freezing, or even serving them as snacks, which enhances the attractiveness of the products in the market.
Market expansion: With effective marketing strategies, this business can expand to new markets locally and internationally, increasing the chance of higher revenues.
