Organic food products plant planned in UAE

DUBAI - Avigo Fzco is planning to invest $20 million in a manufacturing unit in the UAE to produce Nature's Path organic food products in two years' time from now. The first phase of the new facility built at cost of $5 to $7 million will be producing breakfast cereals processed from naturally grown food crops.

By Jamila Qadir

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Published: Fri 13 Feb 2004, 12:26 PM

Last updated: Thu 2 Apr 2015, 11:51 AM

Avigo, which represents the US/Canada-based Nature's Path Foods in the Middle East and South-East Asia, will launch the company's organic products in the UAE market in two to three months's time. Achal Ghai, managing director of Avigo Fzco, said: "There is growing realisation for the need of healthy eating habits and the benefit of organic foods particularly cereals to start the day. Nature's Path is now seriously looking at the Middle East and South-East Asian markets to launch its products. We are receiving immense interest from all over the region."

The global organic foods market is estimated to grow by 20 per cent annually and was $23 billion last year, of which the US accounts for $13 billion and Europe for $10 billion.

Although it is projected to reach $35 to $37 billion next year, with the US accounting for $20 billion and Europe for $15 to $17 billion, the Middle East region is a relatively virgin territory for this kind of products, according to Arran Stephens, president and founder of Nature's Path Foods.

He said, however, that the region was projected to grow in terms of organic food consumption given the current level of income and overall education.

He said: "We have a number of companies from around the region, which have shown interest in our products, and are planning meetings with major hyper-and supermarket chains in the UAE to discuss the future cooperation."

Nature's Path, one of the leading brands of packaged organic foods, has more than 50 ready-to-eat breakfast cereals processed from naturally grown crops and apart from the North America sells its products in New Zealand, Australia and the UK.

The company's organic cereals currently capture a 26 per cent share of the category.



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