RIYADH: Saudi Arabia’s Agricultural Development Fund (ADF) on Tuesday launched a new initiative to boost the agricultural sector by lending support to local farmers.
The fund has introduced “Contract Farming Finance” to enhance marketing of some agricultural produce from farms to end-users through distributers, mediators, retailers or other farms.
It seeks to market local produce under an agreement between buyers and farmers.
The fund, through this initiative, aims to increase coordination between all parties such as farmers, suppliers, marketing services and cooperative associations.
Sulaiman Al-Malek, ADF deputy director for the credit sector, said the goal of the initiative is to secure supplies of agricultural produce, facilitate marketing and selling of local products, contribute to food security and boost strategic food reserves. He said it also seeks to contribute to the national economy by increasing the export of agricultural produce.