Overview
The Saudi Grains Organization (SAGO), previously named Grain Silos and Flour Mills Organization, was established by the Royal Decree No. M/14 issued on 25/3/1392 AH which was amended by the Royal Decree No. M/3 issued on 12/2/1406 AH. Subsequently, the Council of Ministers issued resolution No. 35 which approved taking the necessary actions to establish four joint-stock companies for flour mills, amending the name of the Grain Silos and Flour Mills Organization to be (Saudi Grains Organization) and reorganizing it. Therefore, the Council of Ministers’ resolution No. (328) was issued on 2/8/1437 AH to approve the establishment of the Saudi Grains Organization to manage the silos activity, running, development and improvement. In addition to the tasks of organizing, controlling and supervising the activity of flour-producing mills. In order to achieve its objectives, the organization has the following tasks:
- Set up the silos and flour mills activity to become investment attractions for investors.
- Implement the approved policies, plans and programs to improve the silos and flour mills activity, and adopt the appropriate procedures.
- License the practice of silos and flour mills activity and monitor the licensed parties’ performance of their duties.
- Set quality and safety standards regarding the silos and flour mills activity by coordinating with the related ministries and government entities and monitor the implementation of those standards.
- Buy and sell wheat and create a reserve stock of wheat that meets the need of the kingdom and maintain its balance periodically.
- Organize, control and supervise the silos and flour mills activity.
- Control the wheat quality and the production of the flour milling companies.
- Provide the required quantities of wheat to fully operate the flour milling companies according to the pricing policy suggested by the organization as an organizer of the silos and flour mills activity, and in accordance with the government’s market support policies.
- Control the competition regulations in the field of services provision for soils and flour mills activity.
- Protect consumers in matters related to the products of silos and flour mills.
- Suggest pricing policy for the products of flour mills activity.
Privatization of flour mills
The flour milling sector represents one of the targeted sectors for full privatization under the Kingdom of Saudi Arabia's Vision 2030, and the as one of the initiatives under the third pillar of the privatization program document. The privatization of the flour milling sector enjoys the support of specialized regulatory and executive authorities led by the Ministry of Environment, Water and Agriculture, the NCP and related entities. The privatization had been completed for the four state-owned milling companies as following:
- The First Milling Company is awarded to Raha AlSafi Consortium
- The Second Milling Company is awarded to a consortium of Abdul Aziz Al-Ajlan Sons for Commercial and Real Estate Investments Company, Sulaiman Abdul Aziz Al-Rajhi International Company, National Agricultural Development Company and Olam International Limited.
- The Third Milling Company is awarded to AlRajhi – Ghurair – Masafi Consortium.
- the Forth Milling Company is awarded to the consortium comprised of Allana International, Abdullah Al Othaim Markets, and United Feed Manufacturing Company
For more information on milling company contact details, please see the following link: 4.6 Storage and Milling Companies Contact List.
First Milling Company (MC1)
First milling company (MC1) is one of the largest companies in the Kingdom in terms of production and sales of flour as well as the production of livestock feed and animal bran. The company has four branches in Jeddah, Al-Qassim, Tabuk and Al-Ahsa. In terms of production, the capacity of the silos is 210 thousand metric tons for all branches, while the daily operational capacity is 4200 tons.
Company Name and Address |
Contact Names and Email |
Telephone and Fax |
---|---|---|
First Milling Company (MC1) Jeddah Islamic Port |
Mohamed Ibrahim Alfawzan, General Manager Email: info@mc1.com.sa |
Tel: (+966) 92 00 10375 Fax: (+966) 12 648 3433 |
Summary of Role and Services |
||
|
Facilities |
|
---|---|
Parking Area Inside Compound |
Exists |
Drainage |
Good |
Fire Fighting Equipment |
Exists |
Milling Equipment (Jeddah Mill) |
|||
---|---|---|---|
Origin of Machinery |
Year of Mfg |
Year of Installation |
Condition |
Switzerland (Bühler) |
1979 |
1979 |
Good – capacity 300 MT/Daily |
Switzerland (Bühler) |
1979 |
1979 |
Good – Capacity 450 MT/Daily |
Switzerland (Bühler) |
1979 |
1979 |
Good – Capacity 300 MT/Daily |
Switzerland (Bühler) |
1979 |
1979 |
Good- Capacity 450 MT/Daily – Upgraded in 2012 |
Switzerland (Bühler) |
1985 |
1985 |
Good- Capacity 650 MT/Daily – Upgraded in 2017 |
Other Equipment or Machinery Installed |
||
---|---|---|
Type of Equipment |
Available |
Owned |
Fortification Feeder |
Yes |
Yes |
Bag Cleaning Plant |
Yes |
Yes |
Moisture Tester |
Yes |
Yes |
De-stoning Plant |
Yes |
Yes |
Metal Extractor |
Yes |
Yes |
Staffing |
|
---|---|
Number of Full Time Skilled Workers |
878 |
Conditions & Cleanliness |
||
---|---|---|
|
Outside |
Inside |
Cracks in Walls or Roof |
No |
No |
Signs of Rodent Activity |
No |
No |
Signs of Birds Entry |
No |
No |
Damaged Gutters/Drains |
No |
No |
Signs of Moisture |
No |
No |
Adjacent Vegetation |
No |
No |
Cleanliness |
Good |
Good |
Pest Control |
|
---|---|
Fumigation |
Yes |
Spraying |
Yes |
Rodenticides |
Yes |
Rodent Trapping |
Yes |
Security |
|
---|---|
Security |
Good |
Compound |
Fenced |
Access |
|
---|---|
Distance from Main Town (km) |
Jeddah Mill to Jeddah City: 0 km |
Travel Time if not Located in Town (hours) |
Jeddah Mill to Jeddah City 0.00 hrs |
Road Condition to Mill |
Good |
Road Limitations (if any) |
45 MT for 5 axle trucks, 35 MT for the 4 axle trucks & 21 MT for the double axle trucks |
Milling Capacity |
||
---|---|---|
Commodities |
Daily Capacity (MT) |
Monthly Activity (MT) |
Wheat |
4200 MT |
100,800 MT = 3360 MT Daily |
Storage Capacity |
||
---|---|---|
Storage in Metric Tons |
Wheat – Covered (MT) |
Flour – Covered (MT) |
Within the Compound |
210,000 MT |
30,000 MT |
Second Milling Company (MC2)
Second milling company (MC2) is one of the largest companies in the Kingdom in terms of production and sales of flour as well as the production of livestock feed and animal bran. The company has three branches in Riyadh, Hail & Jazan. In terms of production, the capacity of the silos is 190 thousand metric tons while the daily operational capacity is 3700 tons for all branches.
Company Name and Address |
Contact Names and Email |
Telephone and Fax |
---|---|---|
Second Milling Company (MC2) Old Kharj Road,P.O. Box 6847, Hay Al Manakh Riyadh, 11452 Saudi Arabia |
Abdur Rahman Ar Rowaitea, Chief Executive Officer Eng. Adel Algoher, Production Manager Email: info@mc2.com.sa Web: http://mc2.com.sa/ |
Tel: 8003040403 Fax: (+966) 11 495 1111 |
Summary of Role and Services |
||
|
Facilities |
|
---|---|
Parking Area Inside Compound |
Exists |
Drainage |
Good |
Fire Fighting Equipment |
Exists |
Other Equipment or Machinery Installed |
||
---|---|---|
Type of Equipment |
Available |
Owned |
Fortification Feeder |
Yes |
Yes |
Bag Cleaning Plant |
Yes |
Yes |
Moisture Tester |
Yes |
Yes |
De-stoning Plant |
Yes |
Yes |
Metal Extractor |
Yes |
Yes |
Staffing |
|
---|---|
Number of Full Time Skilled Workers |
750 |
Conditions & Cleanliness |
||
---|---|---|
|
Outside |
Inside |
Cracks in Walls or Roof |
No |
No |
Signs of Rodent Activity |
No |
No |
Signs of Birds Entry |
No |
No |
Damaged Gutters/Drains |
No |
No |
Signs of Moisture |
No |
No |
Adjacent Vegetation |
No |
No |
Cleanliness |
Good |
Good |
Pest Control |
|
---|---|
Fumigation |
Yes |
Spraying |
Yes |
Rodenticides |
Yes |
Rodent Trapping |
Yes |
Security |
|
---|---|
Security |
Good |
Compound |
Fenced |
Access |
|
---|---|
Distance from Main Town- Riyadh (km) |
0.00 km |
Travel Time if not Located in Town (hours) |
0.00 Hours |
Road Condition to Mill |
Good |
Road Limitations (if any) |
45 MT for 5 axle trucks, 35 MT for the 4 axle trucks & 21 MT for the double axle trucks |
Milling Capacity (All Branches) |
||
---|---|---|
Commodities |
Daily Capacity (MT) |
Monthly Activity (MT) |
Wheat |
3700 MT |
111,000 MT |
Storage Capacity (Riyadh) |
||
---|---|---|
Storage in Metric Tons |
Wheat – Covered (MT) |
Flour – Covered (MT) |
Within the Compound |
190,000 MT |
28,000 MT |
Third Milling Company (MC3)
Third milling company (MC3) is one of the largest companies in the Kingdom in terms of production and sales of flour as well as the production of livestock feed and animal bran. The company has three branches in Khamis Mushait, Al-Jawf & Al-Jumum. In terms of production, the capacity of the silos is 185 thousand metric tons for all branches, while the daily operational capacity is 3450 tons.
Company Name and Address |
Contact Names and Email |
Telephone and Fax |
---|---|---|
Third Milling Company (MC3) Khamis Mushait / Al-Anad Road PO Box 15027, Khamis Mushait – 61961 |
Name: Eng. Atef Al Sultan Title: Executive manager Email: info@millingcompany3.com |
Tel: (966) 017-235-9186 Fax: 0172501539 |
Summary of Role and Services |
||
|
Facilities |
|
---|---|
Parking Area Inside Compound |
Exists |
Drainage |
Good |
Fire Fighting Equipment |
Exists |
Milling Equipment |
||||
---|---|---|---|---|
Branch |
Origin of Machinery |
Year of Mfg |
Year of Installation |
Condition |
Khamis Mushait |
Switzerland (Bühler) |
1981 |
1981 |
Good – 450 MT |
Switzerland (Bühler) |
1981 |
1981 |
Good – 600 MT |
|
Switzerland (Bühler) |
1981 |
1981 |
Good – 600 MT |
|
Al-Jumum. |
Switzerland (Bühler) |
2004 |
2004 |
Good – 600 MT |
Switzerland (Bühler) |
2014 |
2014 |
Good – 600 MT |
|
Al-Jawf |
Switzerland (Bühler) |
1986 |
1986 |
Good – 600 MT |
Other Equipment or Machinery Installed |
||
---|---|---|
Type of Equipment |
Available |
Owned |
Fortification Feeder |
Yes |
Yes |
Bag Cleaning Plant |
Yes |
Yes |
Moisture Tester |
Yes |
Yes |
De-stoning Plant |
Yes |
Yes |
Metal Extractor |
Yes |
Yes |
Staffing |
|
---|---|
Number of Full Time Skilled Workers |
725 |
Conditions & Cleanliness |
||
---|---|---|
|
Outside |
Inside |
Cracks in Walls or Roof |
No |
No |
Signs of Rodent Activity |
No |
No |
Signs of Birds Entry |
No |
No |
Damaged Gutters/Drains |
No |
No |
Signs of Moisture |
No |
No |
Adjacent Vegetation |
No |
No |
Cleanliness |
Good |
Good |
Pest Control |
|
---|---|
Fumigation |
Yes |
Spraying |
Yes |
Rodenticides |
Yes |
Rodent Trapping |
Yes |
Security |
|
---|---|
Security |
Good |
Compound |
Fenced |
Access |
|
---|---|
Distance from Main Town- Asser (km) |
23 KM – Asser Mesheet |
Travel Time if not Located in Town (hours) |
0.25 Hours |
Road Condition to Mill |
Good |
Road Limitations (if any) |
45 MT for 5 axle trucks, 35 MT for the 4 axle trucks & 21 MT for the double axle trucks |
Milling Capacity (all branches) |
||
---|---|---|
Commodities |
Daily Capacity (MT) |
Monthly Activity (MT) |
Wheat |
3450 MT |
103,500 MT |
Storage Capacity (all Branches) |
||
---|---|---|
Storage in Metric Tons |
Wheat – Covered (MT) |
Flour – Covered (MT) |
Within the Compound |
185,000 MT |
24,900 MT |
Fourth Milling Company (MC4)
- 1972 The Saudi Grains Organization was established, and its key goals were set around.
- Establishing and operating grain silos, flour and feed mills in the aim of developing the grain, flour and feed industry
- Purchasing and importing grains as well as ensuring required reserves to cater for emergency situations
- 1977 SAGO opened the Dammam branch.
- 1989 SAGO opened the Kharj branch.
- 2008 SAGO opened the Madina branch.
- 2009 SAGO launched its privatization program aiming to increase operational efficiency, improve fiscal performance, support economic growth and enhance operational technology.
- 2011 The Supreme Economic Council – SEC (previously) endorsed SAGO’s privatization strategy to bundle all milling operations under four companies; for Milling Company 4 (MC4), it involved bundling the Dammam, Kharj and Madina branches MC4 commenced operations as a standalone entity operating on commercial bases in preparation for privatization.
Company Name and Address |
Contact Names and Email |
Telephone and Fax |
---|---|---|
Milling Company 4 (MC4) HEADQUARTER ADDRESS King Abdulaziz Sea Port Beside Saudi Food & Drug Authority Dammam Saudi Arabia |
Name: Eng. Hamad bn Mohammed Al Qahtani Title: Executive manager Email: info@millingcompany4.com |
Tel: +966-13-8299010 Fax: +966-13-8299011 |
Summary of Role and Services |
||
|
Facilities |
|
---|---|
Parking Area Inside Compound |
Exists |
Drainage |
Good |
Fire Fighting Equipment |
Exists |
Milling Equipment |
||||
---|---|---|---|---|
Branch |
Origin of Machinery |
Year of Mfg |
Year of Installation |
Condition |
Dammam |
Switzerland (Bühler) |
1977 |
1977 |
Good – 450 MT |
Switzerland (Bühler) |
1977 |
1977 |
Good – 450 MT |
|
Switzerland (Bühler) |
1977 |
1977 |
Good – 450 MT |
|
Madina Al Munawra |
Switzerland (Bühler) |
2008 |
2008 |
Good – 600 MT |
Switzerland (Bühler) |
2008 |
2008 |
Good – 600 MT |
|
Al Kharj |
Switzerland (Bühler) |
1989 |
1989 |
Good – 600 MT |
Other Equipment or Machinery Installed |
||
---|---|---|
Type of Equipment |
Available |
Owned |
Fortification Feeder |
Yes |
Yes |
Bag Cleaning Plant |
Yes |
Yes |
Moisture Tester |
Yes |
Yes |
De-stoning Plant |
Yes |
Yes |
Metal Extractor |
Yes |
Yes |
Staffing |
|
---|---|
Number of Full Time Skilled Workers |
300 |
Conditions & Cleanliness |
||
---|---|---|
|
Outside |
Inside |
Cracks in Walls or Roof |
No |
No |
Signs of Rodent Activity |
No |
No |
Signs of Birds Entry |
No |
No |
Damaged Gutters/Drains |
No |
No |
Signs of Moisture |
No |
No |
Adjacent Vegetation |
No |
No |
Cleanliness |
Good |
Good |
Pest Control |
|
---|---|
Fumigation |
Yes |
Spraying |
Yes |
Rodenticides |
Yes |
Rodent Trapping |
Yes |
Security |
|
---|---|
Security |
Good |
Compound |
Fenced |
Access |
|
---|---|
Distance from Main Town- Dammam (km) |
17 KM |
Travel Time if not Located in Town (hours) |
20 Minutes |
Road Condition to Mill |
Good |
Road Limitations (if any) |
45 MT for 5 axle trucks, 35 MT for the 4 axle trucks & 21 MT for the double axle trucks |
Milling Capacity (all branches) |
||
---|---|---|
Commodities |
Daily Capacity (MT) |
Monthly Activity (MT) |
Wheat |
3150 MT |
94,500 MT |
Storage Capacity (all Branches) |
||
---|---|---|
Storage in Metric Tons |
Wheat – Covered (MT) |
Flour – Covered (MT) |
Within the Compound |
140,000 MT |
22,000 MT |