How UAE’s Graze-it is revolutionizing the MENA food value chain through agri-tech

The Middle Eastern agricultural realm has undergone seismic shifts post-COVID-19, grappling with disrupted supply chains, volatile prices, and dwindling agricultural resources. That has spotlighted a grave food security concern, and Emirati agri-tech, Graze-it, hopes to be the remedy.

Initiated in 2021, Graze-it, headquartered in the UAE, strives to diminish dependency on overseas feedstock. They aim to curb soaring transportation and logistics expenses by cultivating sustainable animal feed directly at the end-user location. This practice slashes around 35% of the carbon footprint per liter of milk produced.

Alexandre Allegue, the mind behind Graze-it, recognized the environmental toll of the meat and dairy sector, coupled with the region's heavy reliance on it. "The world dines on this industry, but there's an underlying environmental guilt," says Allegue, Graze-it's CEO and Founder. "Our environmental concern isn't just about emissions; it's about food security in our region. Predominantly, the Middle East imports over 90% of its animal feed. The pandemic drove transportation costs skyward, and the Ukraine conflict worsened feed scarcities."

Determined to redefine the food value chain, Allegue envisioned providing affordable and eco-friendly animal feed to Middle Eastern dairy firms. Presently, they're collaborating with Al Safi Danon, a significant dairy player in Saudi Arabia, and they are set to broaden their horizon across the GCC in the forthcoming years.

Here's How Graze-it Operates:

Traditional feed farming incurs heavy import and transport costs. Allegue highlights that certain dairy entities import feed worth $50 million to $70 million, hoarding it for up to six months. With Graze-it overseeing the entire feed production, they offer a unique subscription-based "feed as a service."

"Instead of static feed stockpiles and dealing with unpredictable feed availability and pricing, producers can subscribe to our service," Allegue mentions. "We establish a tailored agricultural environment, ensuring consistent feed supply."

The feed, or fresh fodder, is cultivated in a hydroponic vertical farm, enhanced with AI and big data, ensuring optimal feed health and nutrition. The inaugural facility is under construction in Saudi Arabia and is set for completion by 2023.

Prioritizing Nutritional Value:

Transitioning from the energy sector to agri-tech was a challenging leap for Allegue. Perfecting cost-effective, nutrient-rich fodder was paramount for market penetration. Allegue accentuates, "Without a robust business case, capital alone won't suffice." To attain this, they banked on nutritionists' expertise, iterating and refining their product to ensure it boosted animal health and provided favorable financial returns.

Eco-Friendly Ambitions:

Graze-it's mission isn't solely profit-driven; environmental sustainability is at its core. Substituting 30% of conventional feed with Graze-it can substantially decrease the meat and dairy sector's carbon footprint, which currently stands at 14.5% globally, per the UN's Food and Agricultural Organization. "Our Saudi-based farm alone can curtail 200,000 metric tons of yearly emissions - equivalent to removing 35,000 cars off the roads," Allegue states.

Moreover, their on-site growth model utilizes 95% less water than traditional farming. "We recycle and optimize water use, minimizing wastage," he adds.

With their Saudi Arabian facility nearing completion, Graze-it is poised to make its mark in the region's dairy sector, backed by its investors based there. The company hinged on project financing to gather the capital for the facility, negating equity investment.

Allegue summarizes, "Our motives are rooted in food and quality security, inventory reduction, and mitigating environmental impacts."

As for the future? Graze-it envisions growth within the GCC and potential expansion into Latin America and beyond.