Waste Management
Waste management plays an important role in supporting the efficiency and sustainability of our production and distribution system across the GCC. As a vertically integrated dairy and poultry producer, our activities generate multiple waste streams, including organic residues such as manure and sludge, wastewater solids, packaging materials, and operational plastics from production and logistics activities. These materials contain nutrients and other substances that require controlled handling and treatment to manage nutrient runoff, water contamination, and leakage into the wider environment.
Why This Matters
Our operations are embedded within a regional waste management context where landfill disposal remains common and recycling infrastructure is still developing. Organic waste in landfill can generate methane emissions and leachate, while packaging and operational plastics can persist in the environment if recovery systems are incomplete. Maintenance, cleaning, and animal healthcare activities also generate chemical and veterinary residues that require compliant handling to avoid risks to workers and surrounding communities.
From a regulatory and stakeholder perspective, expectations around waste diversion and packaging recovery are increasing across GCC markets. Emerging extended producer responsibility frameworks may require producers to finance, verify, or report packaging recovery outcomes, increasing compliance and verification demands over time. Uneven availability of recycling infrastructure across the region can also raise waste treatment costs and restrict access to reliable recovery channels, making waste segregation and recovery performance an increasingly visible area of external scrutiny.
Our Approach
Our approach to waste management is guided by Almarai’s Environmental Policy, which sets group wide principles and expectations for responsible stewardship of resources across our operations and controlled entities. Waste management is identified within the policy as a key environmental focus area and is managed through internal requirements that apply across business divisions.
Waste Mitigation Hierarchy
Waste management is implemented through operational procedures aligned with the waste mitigation hierarchy. This approach prioritizes source reduction and reuse, followed by recycling and recovery, with responsible disposal applied where residual waste remains. These requirements provide a consistent framework for managing organic residues, packaging materials, and operational plastics generated across production and logistics activities. Packaging related waste is managed through this approach and is complemented by initiatives addressed under Packaging Innovation.
Oversight for waste management sits within the Quality and Support Services (QSS) under executive accountability. Performance and implementation progress are monitored through a cross functional Waste Steering Group, which brings together relevant departments to support coordination and compliance.
Key Developments
During the reporting year, we expanded diversion pathways for organic and operational waste streams across our production and distribution footprint.
Material Recovery Streams
Food and bakery market returns were directed to animal feed through buyers in major depots in Saudi Arabia and the UAE, and selected near expiry dairy products were supplied to third parties for further processing in the UAE and Oman. In the UAE, aged juice products were supplied to the Dubai Food Bank, while poultry non-market returns were sent for rendering. Recyclable scrap materials, including used oil, metals, and other recoverable items, were also directed to relevant buyers through established recovery channels.
On-Site Recovery Practices
At site level, we strengthened segregation and recovery practices through measures such as canteen waste segregation and expanded diversion of wastewater treatment sludge and rejected product streams. Recyclable material handling was broadened in some operations to include additional categories such as glass and rubber, supporting higher recovery volumes and reduced reliance on landfill disposal. In parallel, waste tracking and compliance procedures continued to be implemented where required, including through manifest based controls for transportation and disposal in parts of the UAE.
During the year, segregation and recovery practices were also strengthened for operational and packaging related waste, with packaging and plastics initiatives addressed in more detail under Packaging Innovation. These actions supported continued progress toward Almarai’s landfill reduction target and reflected incremental strengthening of waste handling systems and recovery outcomes.
From Waste to Value: Biogas at Beyti
Our Beyti biogas project is a tangible example of how we translate sustainability into operational action, advancing decarbonization, resource efficiency, and circular economy practices. Following a successful 2024 pilot converting two tons of mixed waste into biogas and organic fertilizer, the project received CER approval in May 2025 and commenced start-up in December. By repurposing existing infrastructure, we reduced capital costs from X 3.7 million to X 270,000. Once fully operational, the project will support over 80% of our zero-landfill target, supply approximately 20% of BP2’s natural gas needs, and generate more than 8,000 tons of organic fertilizer annually.
Poultry Manure Recovery
Poultry manure is processed through a dedicated gasification facility to produce Ecochar, a carbon-rich by-product that can be reused as a farming substrate. This initiative supports organic waste reduction and value recovery, with secondary benefits for soil conditioning and soil water retention.
Contributing to the National Circular Economy
In 2025, Almarai partnered with the Communications, Space and Technology (CST) Commission and the Ertiqa Association for the "Recycle Your Device" initiative, donating electronics for refurbishment and redistribution to schools and charities, while helping bridge the digital divide. This strategic participation advances a circular economy and digital transformation, aligning with Saudi Vision 2030 goals to reduce electronic waste and empower communities.
Progress Toward Targets
Current Targets
Status
Reduce waste going to landfill across all divisions by 50% by 2025 (against a 2018 baseline).
Target achieved as of 2025.
Metrics
219,693 t
Total waste generated
50%
Waste recycled
The share of waste sent to landfill declined to 50%, compared to approximately 70% in the 2018 baseline year. While total waste generated increased over the period, landfill volumes have not risen proportionately, highlighting improved diversion and recovery outcomes across operations.