Saudi tomatoes garner high prices in European market

SAUDI ARABIA – Saudi Arabian tomatoes, grown by the hydroponic producer Dava, have successfully entered the European market, fetching high prices and marking a significant achievement for the company.

Dava’s Chief Commercial Officer, Wissam Abdel Samad, reflects on this breakthrough, sharing insights into the company’s recent endeavors and future plans.

“The winter season in Saudi Arabia is typically marked by high field production, low prices, and fierce competition,” Wissam explained.

“This situation led us to consider exporting our tomatoes to Europe during the winter months, where demand and prices are more favorable.”

In February 2024, Dava made its inaugural shipment of five tonnes of tomatoes to the Netherlands, marking the first time Saudi tomatoes had been exported to Europe.

The company followed this with five more shipments, all within a month, extending until the end of March 2024. The trial shipments proved to be a commercial success, with high demand and prices in the European market.

Wissam credits the support from Saudi Export and Saudia Cargo for making the venture profitable. “It’s very profitable to export to Europe during the winter when local market prices are low,” he noted.

“We’ve received high prices in Europe, and our customers have shown significant demand for our products. We’re aiming to export 1,500 tons to the European market by 2025.”

Building on the success of the tomato exports, Dava launched new packaging products in April 2024. Registered with the Saudi Food & Drug Authority, these innovative packaging options are designed to preserve freshness and enhance the visual appeal of the products.

Wissam emphasized the company’s focus on maximizing production during the months of August, September, and October.

“We currently have around 50 hectares spread over three projects running at full capacity,” he said.

While Dava targets the European market during winter, the company is also working on developing an export market in the Gulf States for the summer season.

The company has already signed an agreement with Lulu Supermarket to start exporting its products to Lulu branches across the GCC.

Additionally, Dava is in negotiations with Spinneys and Carrefour to expand its deliveries across the region.

“The summer season presents major production challenges due to extreme temperatures, but demand remains very strong in Saudi Arabia and the GCC countries from May to November,” Wissam stated.

“One of our objectives is to supply vegetables year-round, particularly during the summer, contributing to self-sufficiency in line with Saudi Arabia’s Vision 2030 initiative.”

Wissam also shared that Dava has been trialing the cultivation of lettuce and other leafy greens at extremely high temperatures during July, with plans to introduce these varieties to the market soon.