Sustainability at Almarai

Feed crop cultivation can influence land and ecosystem conditions at scale. Ongoing cultivation of crops such as alfalfa and maize can contribute to habitat pressure and land conversion effects, reduce biodiversity, and affect soil carbon stocks. Intensive irrigation and repeated tillage can degrade soil structure and reduce long term productivity. Fertilizer and manure application can contribute to nutrient runoff and water quality impacts, particularly where irrigation channels or downstream ecosystems are affected. The use of pesticides and herbicides can also affect non target species and pollinator health, and residues may persist in soil and irrigation systems.

From a financial perspective, farming productivity and resource conditions in feed sourcing regions affect input cost and supply stability. Declining soil fertility and water stress can reduce yields and raise procurement costs over time. Regulatory reforms in sourcing countries are also tightening oversight of fertilizer use, pesticide application, and land conversion, with implications for monitoring, verification, and certification alignment. Investments in improved irrigation practices and stronger traceability systems can support stable feed supply and reduce exposure to regulatory and market requirements linked to agricultural sourcing.

Sustainable agriculture practices are further supported through policies and management systems applied within key agricultural operations. This includes the Sustainability Policy of Fondomonte South America, which was revised in 2024 and sets expectations for responsible land use, resource efficiency, and environmental management within agricultural processes. The policy framework is designed to support implementation through risk identification, operational controls, and continuous monitoring across farming and farm management activities.

To strengthen consistency and credibility, we use external verification and assurance mechanisms where applicable. Agricultural operations are subject to third-party assessment against recognized sustainability frameworks, providing independent validation of farming practices and management systems. 

In Arizona, sub-surface drip irrigation infrastructure was replaced across approximately 500 acres, supporting uniformity and efficiency across drip-irrigated farms. In California, we converted approximately 1,400 acres of farmland to higher-efficiency Linear Pivot irrigation systems. We also completed the first phase of a Rubicon automated flood irrigation conversion program across approximately 2,700 acres, which is expected to conserve around 15 to 20 percent of water on the converted acreage. Alongside these upgrades, we digitalized well monitoring and operations through the Well Insight system to support real-time tracking of irrigation flows, pressures, and efficiency. Together, these site-level upgrades strengthen the operational foundation for more consistent water and input management across our agricultural footprint.

Input and soil management initiatives also progressed during the year. Organic cow manure application continued across rotated acreage in Arizona at approximately 10 tons per acre, supported by expanded handling and transport capability. A structured regenerative agriculture trial, conducted with Hayday Farms and California State University, also continued during the year, comparing conventional and regenerative field practices to inform longer-term cultivation approaches across feed production systems.

We also continued to strengthen how sustainable agriculture performance is monitored and verified across key agricultural operations. Progress is tracked through operational indicators covering water and nutrient management, soil condition, and biodiversity practices, alongside audit and certification outcomes. These include certification against Saudi Good Agricultural Practices (Saudi G.A.P.) and the achievement of Silver-level verification under the Sustainable Agriculture Platform (SA Platform) for Fondomonte.