Developing the Desert: How Qatar Achieved Dairy Self-Sufficiency Through Baladna

Abstract

This case study analyzes how Qatar rapidly achieved dairy self-sufficiency through public–private partnerships following the 2017–2021 blockade. Specifically, it examines the role of Baladna, Qatar’s leading dairy company, in scaling up its domestic production through alignment with government policies. A mixed-methods approach was employed, combining semi-structured interviews with key stakeholders from the Qatari government and Baladna and a review of Baladna’s internal documents and reports. Thematic content analysis was used to identify key themes, and data from Baladna’s reports were triangulated to validate the findings. Collaboration between Qatar’s government and Baladna ensured the self-sufficiency of domestic dairy demand, expanding operations with new products and exports, and strengthening supply chains. However, reliance on government support raises sustainability concerns, highlighting the need for efficiency and diversification. This partnership aligns with national policies, such as the Qatar National Food Security Strategy 2018–2023, and offers insights into how public–private collaborations can promote growth and supply security while balancing state support with market dynamics. This case study highlights how the blockade crisis catalyzed effective public–private collaboration, driving rapid growth in Qatar’s dairy sector to meet domestic demand. The lessons from Qatar’s developmental approach can provide insights for resource-rich countries struggling with food insecurity.

1. Introduction

The developmental state theory proposes that governments should actively direct economic development and support the private sector in a state-capitalist manner rather than through a command economy. Johnson emphasized the importance of government bureaucracy in enabling the private sector to grow and gain a competitive edge [1]. Although non-democratic governments may have an advantage in facilitating the coordination of resources and in initiating incentives to support public–private sector collaboration, a balanced approach is needed. When a non-democratic government is aligned and paired with a skilled and motivated bureaucracy, as Kohli asserts, it can produce a “transformative power” that is the ideal goal of any developmental state [2].

Qatar exemplifies a developmental state in which a state-capitalist approach coupled with identified national strategic priorities can allow the advantages of public–private sector collaboration to be leveraged and amplified. The government’s approach to promoting economic development is evident through significant interventions in key sectors, such as the dairy industry.

Food security has become a pressing concern in Qatar given the country’s heavy reliance on imported food. As a small but resource-rich country, Qatar must optimize its efforts to achieve its food security objectives. The urgency of this issue is heightened in Qatar, as the country lies in a region with scarce water resources, which makes it difficult to cultivate and grow food naturally [3]. Because of the low annual rainfall, agriculture in the Arabian Gulf region is only possible on approximately 4.5% of the land [4]. Although Qatar is resource-rich in petrochemicals, its food security is at risk because of the resource-poor nature of its natural environment, which affects the country’s ability to produce enough food domestically. For this reason, until recently, Qatar imported much of its food.

In June 2017, Saudi Arabia, Bahrain, Egypt, and the United Arab Emirates (UAE) suddenly cut diplomatic, travel, and trade ties with Qatar. The blockade led to the immediate closure of all land, air, and sea travel between Qatar and these countries and all nationals from Qatar (except for Egyptian nationals) [5]. When the blockade began, vulnerability and heavy reliance on imported foods were exposed as panic buying occurred within society in the initial days following its enactment [6]. Before the Gulf Crisis began in 2017, nearly 90% of Qatar’s food products were imported, mainly from Saudi Arabia [7]. These imports included most dairy products available in Qatar. The Gulf Crisis revealed Qatar’s vulnerability to providing this important commodity to its population once imports from Saudi Arabia, the UAE, and other countries ceased. To compound the situation, during the blockade, which lasted until January 2021, the coronavirus pandemic from March 2020 impacted global trade and supply chains globally. Furthermore, it added to Qatar’s challenges in securing sufficient food supply through alternative supply channels. In response, the Qatari government launched the National Food Security Strategy (2018–2023), prioritizing local production and strategic partnerships. Baladna, Qatar’s leading dairy company, played a central role in these efforts by aligning its business strategies with government policies to expand domestic dairy production. Public–private collaboration became critical for building local capacity with the government providing land, capital, and other incentives to support Baladna’s rapid expansion.

Qatar provided land and capital to develop its dairy industry [8]. Some more notable aspects of this response include 4000 dairy cows being flown to Qatar by October 2017 [9]. Furthermore, infrastructure was set up to provide climate-controlled facilities to allow cows to live in the desert climate of Qatar [10]. By the summer of 2018, Qatar was able to announce that it was self-sufficient in the production of dairy products consumed by the population of Qatar [9].

Several food security challenges, such as import dependence, water management, and sustainability policies, have been the subjects of many studies [4,8]. Investing in agricultural innovations and the diversification of food imports in the UAE and Saudi Arabia has been investigated to reduce the risk of reliance on external sources [11]. The 2023 Global Food Policy Report (CGIAR) highlights the need for sustainable practices, public–private partnerships, and policies to mitigate food supply risks CGIAR. Similarly, the CGIAR Research Initiative on Fragility, Conflict, and Migration stresses the role of climate-resilient systems and effective governance to enhance food security [12].

Recent food security studies in Qatar highlight the nation’s strategies to enhance its resilience against potential blockage crises: for example, diversifying trade partners to secure food supplies, boost local production and imports, and identify new import sources like India and Australia, to stabilize food security [13,14,15]. Nevertheless, studies have highlighted that addressing food security through public–private partnerships, particularly in smaller, resource-rich states like Qatar, remains limited [16].

The dual challenges of regional blockade and pandemic provide a unique context to explore Qatar’s food security and sustainability efforts. This study aims to draw lessons from Qatar’s experiences through a case study that is supported by semi-structured interviews with key industry stakeholders and government officials. This study analyzes Qatar’s partnership with Baladna to develop the dairy sector and enhance food security and examines how their initiatives were aligned following the 2017–2021 blockade to achieve rapid dairy self-sufficiency. The study also examines the viability and competitiveness of Qatar’s dairy sector, highlighting policy implications for resource-rich countries. Two main hypotheses guide this research. First, the alignment of government policies with private sector initiatives has facilitated rapid progress in achieving dairy self-sufficiency. Second, public–private collaboration enabled Baladna to overcome supply chain disruptions and facilitate its expansion and consolidation after the blockade.

This research highlights how companies such as Baladna operate within the political economy of Qatar, emphasizing the effectiveness and adaptability of Qatar’s strategy for achieving national food security goals. Furthermore, this case study contributes to the broader literature on the political economy and sustainability of Qatar and the Gulf Cooperation Council states. The focus on the dairy sector is significant, since it has been a key pillar of the Qatar National Food Security Strategy (2020) and a major success during the blockade [8,11,16]. However, questions remain about the sector’s long-term sustainability and the best strategies for advancing national food security.

The implementation of Qatar’s food security strategy has been significant, yet it has faced multiple challenges, including environmental constraints, water scarcity, and the need to rapidly develop human capacity with the necessary technical expertise. The government has addressed these issues through strategic investments in technology, infrastructure, and human capital development. However, the context of the blockade led to it being prioritized and handled with a sense of urgency. This necessitated rapid responses while balancing long-term sustainability considerations, which this paper will explore.

In terms of the theoretical approach of the paper, this article’s analysis of Qatar’s dairy sector development can be meaningfully examined through the lens of the five pillars of food security: availability, access, utilization, stability, and food sovereignty. While this framework has traditionally been applied to a broader conceptualization of food security, it offers salient insights in examining sectoral development in resource-constrained environments. This article takes the position that each pillar provides distinct yet interconnected analytical framing through which Qatar’s achievements and challenges in food security can be understood through developing dairy self-sufficiency.

The five-pillars framework for food security analysis, which also incorporates sustainability, offers important insights and has evolved in contemporary scholarship [17], with food sovereignty emerging as a fifth dimension that emphasizes local control and community participation [18]. This expanded framework is relevant for Gulf states, where environmental constraints exist but are within a political economy context where there is resource abundance [19]. Within the context of food sectoral development, particularly dairy production, this framework offers insightful analytical dimensions for understanding both achievements and challenges [20].

In terms of defining these pillars, the availability pillar encompasses the physical presence and quantity of food, which is traditionally measured through production, storage, and trade capacity. Access is defined as examining economic and physical barriers to obtaining food, including affordability and distribution networks. Utilization is defined as the focus on food safety, nutritional value, and quality standards. Stability is defined as the temporal dimension of food security, because underscores the need to examine system resilience against various shocks. Finally, food sovereignty focuses on how the degree of local control and community participation in food system development occurs.

This theoretical framework allows for a comprehensive evaluation of Qatar’s dairy sector development, moving beyond mere production metrics to examine broader societal impacts and system resilience. We believe this illuminates how Qatar’s unique approach to public–private partnership has addressed multiple dimensions of food security simultaneously whist also operating within a developmental state political economy context.

2. Materials and Methods

2.1. Study Design

This case study adopts a mixed-methods approach that includes semi-structured interviews and a review of Baladna’s internal documents. Semi-structured interviews were conducted with key stakeholders from the Qatari government and Baladna to gain insights into Qatar’s food security planning. This allowed us to gain insights into the development of the dairy sector in addition to Baladna’s leadership, strategic partnerships and growth outlook. The interview findings were analyzed using a thematic analysis approach to help identify prevailing themes. This was applied in the analysis to allow for the evaluation of Qatar’s dairy self-sufficiency model and Baladna’s significance in this process. The analysis also drew from primary materials, which included various companies’ reports. These were reviewed to gather data on the company’s operations, growth, and strategic plans, which were triangulated and critically engaged with as part of the semi-structured interviews.

2.2. Study Setting and Population

Interviews were conducted in Doha, Qatar, between March and May 2023. Access to key stakeholders was achieved, including the following:

• Dr. Masoud J. Al-Marri, Director of the Food Security Department, Ministry of Municipality;
• Malcolm Jordan, Chief Executive Officer, Baladna;
• Francis Higgins, Head of Sustainability and Communications, Baladna;
• Vedavyas Vemuri, General Manager, Supply Chain, Baladna, Indonesia.

The interviewees were selected based on their leadership roles in organizations directly involved in Qatar’s food security planning and dairy sector. They have allowed this case study includes insights from both governmental and business perspectives.

2.3. Data Collection

Semi-structured interviews were conducted to triangulate published materials on Qatar’s food security practices to enable critical engagement on the topics in question. As such, the interview questions focused on multiple aspects, including Qatar’s food security strategy, the significance of the dairy sector, Baladna’s operations and strategic partnerships, and the government’s support for local industries. Examples of questions included the following:

• How does Baladna contribute to Qatar’s food security strategy?
• What is the government’s view on the viability and competitiveness of Qatar’s dairy sector?
• What joint ventures and partnerships have Baladna pursued to facilitate its growth?
• What incentives and support did the government provide to boost domestic food production?

Each interview lasted 45–60 min. Detailed notes were collected during the interviews and analyzed to identify themes highlighting Qatar’s food security approach and to enhance food security and the partnership between the government and Baladna. The questions posed to the Qatari government focused on the development of a food security strategy and its involvement in directing such a strategy from a policy perspective and through its interactions with the dairy business sector within Qatar. This was triangulated with data from Baladna’s annual reports, which were extracted to provide an overview of the company’s development, strategic plans, and financial performance.

2.4. Data Analysis

The interview findings and document review were analyzed through content analysis to identify common themes and patterns. Relevant quotes from the interviewees were extracted to verify and support the key arguments and findings. The themes were categorized according to the main interview question topics, which included Qatar’s food security policy, the dairy industry’s competitiveness, the government–Baladna partnership, and Baladna’s business strategies. The triangulation of data from multiple sources was employed to enhance the credibility and validity of the analysis. The analysis highlights insights into the strategic partnership between the Qatari government and the private sector (Baladna) and examines how this collaboration addressed the blockade crisis while driving the expansion of Qatar’s dairy industry during the post-crisis period.

3. Results and Discussion

3.1. Government–Industry Strategic Partnerships

Food security is a critical concern worldwide, and Qatar is no exception. A recent interview with the author, Dr. Masoud J. Al-Marri, the Director of the Food Security Department of the Ministry of Municipality and Environment, provided insights into Qatar’s food security planning, achievements, and challenges [21].

According to Dr. Al-Marri, food security in Qatar involves not only the abundance of food but also quality, safety, and hygiene. He emphasized that the government supports local producers of strategic foods and staple commodities to achieve food security [21].

Qatar has made significant progress in this regard, achieving complete/total self-sufficiency in fresh poultry and nearly 100% self-sufficiency in dairy products. However, the country faces challenges in producing enough fresh vegetables during the summer months, which the government is working on [21]. Given its limited water resources and land area, Qatar is highly dependent on imports to meet its needs. Dr. Al-Marri explained that the country has learned from past experiences, such as the recent blockade, and now maintains a strategic stockpile of essential commodities, such as a six-month supply of grains and cooking oils. Additionally, the country is working on diversifying its import sources and taking climate change predictions into account [21].

In light of these challenges, Qatar’s dairy sector development can be analyzed with reference to the five pillars of food security. These allows us to better appreciate the multifaceted nature of both achievements and ongoing challenges. In terms of availability, Qatar has achieved significant progress in this area as Baladna’s production increased from negligible levels pre-blockade to meeting approximately 100% of local fresh dairy demand by 2021. In this regard, we can identify that access considerations have also been central to Qatar’s dairy strategy, with Baladna developing the logistics for an extensive distribution network that covers both retail and HoReCa sectors. It is also noteworthy that by adopting a two-brand strategy—premium Baladna and value-focused Awafi lines –this company has adapted to market segmentation and income levels to achieve maximum impact.

In terms of utilization, this is also evidenced through Baladna’s quality control systems and state-of-the-art processing facilities, which have been enabled by Qatar’s political economy. The company maintains international food safety certifications and employs a 17-person veterinary team, to ensure high standards of product safety and nutritional value. The proximity of production to consumption also enhances product freshness compared with imported alternatives.

The dairy sector is one of the key sectors in Qatar’s food security planning. Dr. Al-Marri noted that the country has a mix of fresh and powdered milk producers with fresh produce fulfilling market requirements under normal circumstances. However, the dairy sector faces challenges when supply chains are interrupted or following delays in the supply of certain production requirements, such as animal feed [21].

Qatar provides vaccinations, healthcare, and partial support for animal feed to support the local dairy industry. The government is also in the early stages of exploring subsidies for companies to sustain production costs, seeking to find plans to substitute this support with self-sustaining protocols [21]. Furthermore, Qatar focuses on reducing water consumption in local animal feed production. Dr. Al-Marri mentioned that plans are to use treated water instead of groundwater to produce animal feed, saving approximately 70% of the water used for agriculture.

Strategic partnerships play a vital role in the growth and development of dairy and the agricultural sector. Baladna leveraged such partnerships to contribute to Qatar’s food security and foster sustainable development in the country’s dairy and agriculture sectors. The following paragraphs discuss Baladna’s approach to strategic partnerships, focusing on collaboration with stakeholders, government support, and joint ventures.

A.

Collaboration with local and international stakeholders: Baladna established partnerships with various stakeholders to promote knowledge sharing, technology transfer, and best practices in the dairy and agriculture sectors. Collaborations include working with Dutch dairy experts to optimize dairy farming techniques and partnering with local universities and research institutions to research sustainable farming practices and innovative technologies. Baladna strengthened its capacity to adapt to new challenges by engaging diverse stakeholders and staying at the forefront of industry developments.

B.

Government support and incentives: The Qatari government’s support and incentives have facilitated Baladna’s growth. The government prioritized food security and self-sufficiency in its national development strategy, offering various incentives, such as low-interest loans, tax breaks and land grants, to encourage the development of the dairy and agriculture sectors. This support has enabled Baladna to invest in advanced technologies and significantly expand its operations, thus contributing to Qatar’s food security goals.

C.

Joint ventures and investments: Baladna has pursued joint ventures and investments with local and international partners to expand its business and explore new market opportunities. These collaborations have allowed the company to diversify its product offerings, enter new markets, and secure access to resources and expertise. By engaging in joint ventures and investments, Baladna fosters innovation and creates synergies that contribute to the sustainable development of Qatar’s dairy and agriculture sectors.

Over the past few years, Qatar has made significant strides in food security planning, ranking 30th out of 113 countries in food security and 2nd among Arab states [21]. Qatar’s food security ranking based on the Global Food Security Index is a useful indicator as it evaluates affordability, availability, quality, safety, and natural resource resilience [21]. Efforts are being made to use secondary dairy products from sheep, goats and camels to further enhance the country’s food security. While challenges remain, Qatar’s proactive food security planning approach demonstrates its commitment to achieving a sustainable and secure food supply for its population.

Post-blockade, Qatar has aimed to strategically diversify its trade partnerships to enhance food security resilience. A notable example is the strengthening of Qatar–EU cooperation. This was formalized through the "Forging Qatari-EU Partnerships for Sustainable Food Security" initiative [22]. This partnership focused on advancing sustainable agriculture through technology transfer in areas such as hydroponics, aquaponics, and precision farming. Importantly, it focused on developing more resilient food supply chains for Qatar with the EU.

3.2. Public–Private Synergy in Achieving Food Security

3.2.1. Emergence of the Local Dairy Industry

Prior to the 2017–2021 blockade, Qatar relied heavily on imported dairy products. However, the blockade created a need for self-sufficiency in the dairy sector. Qatari businessman and Baladna chairperson Moutaz Al Khayyat, with the support of the Qatari government, airlifted 4000 Holstein cows to compensate for the loss of dairy products from Saudi Arabia and the UAE [10]. Baladna, meaning “our country” in Arabic, emerged as Qatar’s top dairy producer [22].

Baladna’s ascent was noteworthy, representing a more assertive effort by the Qatari government to strengthen local industries. Before the blockade, only 10% of the domestic vegetable demand was met by local food production. Of the 1400 farms in Qatar, only one-third were commercial enterprises, while the remaining cater to the needs of individual families [19]. In contrast, from 2017 to 2018, after the onset of the blockade, Qatari farms increased their output by fourfold, enabling the nation to meet over 90% of its requirements for chicken and dairy products [19].

The results of the government’s and Baladna’s efforts were impressive. When the blockade was announced, Qatar could deliver milking machines quickly by paying an Irish company to buy the equipment and step aside for a rush order [23]. Baladna uses climate-controlled barns with cooling systems to overcome the desert climate, and the farm has a 17-person veterinary team and hospital to care for the herd [23]. These efforts led Qatar to achieve self-sufficiency in dairy production, which is a significant accomplishment considering that the country previously relied on imports for 72% of its dairy supply [10].

During the blockade, Baladna sought to increase its herd by 30% to 24,000 cows per year. Following the importation of 8000 cows in 2018, the size of Baladna’s herd reached 20,846 cows in March of that year, highlighting the rapid growth experienced. Approximately 30–35 calves are born daily on the property, resulting in an annual increase of 11,000–13,000 new cows, which is equivalent to 50–60% of the existing herd [24]. This expansion aims to attain 100% self-sufficiency in dairy milk products for Qatar (Ministry of Municipality and Environment, 2020). Dr. Al-Marri highlighted the success of public–private collaboration during crises: “In terms of abundance, we see it is happening due to the government support of local producers of strategic foods and staple commodities to achieve food security” [21].

Nevertheless, factors such as production costs, resource availability, imports, population growth and consumption rates may impact the feasibility and sustainability of meeting domestic dairy demand. From a policy perspective, it is important to weigh the costs and benefits of self-sufficiency against trade cooperation. Overreliance on domestic production could reduce economic efficiency despite Qatar’s comparative advantage over other sectors, such as the gas, oil, and petrochemical industries, which support a rentier economic model.

Since the Gulf Crisis, Qatar has had the opportunity to develop its food security strategy independently. In the past year, Qatar has invested heavily in projects directly associated with increasing its food security; examples include the Strategic Food Security Facilities Project, Hassad Food’s investments, increased public–private investment through the Ministry of Municipality and Environment, development of technology in areas such as greenhouse design and cooling, and expansion of investment and production by companies such as Baladna to increase Qatar’s self-sufficiency in food production.

The fact that Qatar has, in such a short time, been able to meet the food consumption needs of its population after the blockade cut off its main food import route affirms Qatar’s ability to take the issue of food security seriously and find solutions that will continue to be implemented in the future. The semi-structured interviews revealed that Qatar can find many viable pathways to achieve food security. They also show that Qatar is approaching its food security goals and that the example of Baladna within the dairy sector demonstrates how a company can operate independently and for-profit while remaining aligned with national food security strategies.

Qatar’s successful response to the blockade and Baladna’s role in this narrative of success highlights the country’s unique political economy. Specifically, Qatar’s effective adoption of a developmental state approach to its political and economic development is exemplified by the relationship between the government of Qatar and Baladna, as evidenced in its tone and outcome (Figure 1).

3.2.2. Expansion of the Qatar Dairy Industry: Baladna’s Success

Building on the success achieved during the recent blockade, Baladna’s strategic plans indicate ambitious growth targets. However, the feasibility of these targets requires further assessment based on factors such as infrastructure, feedstock, and demand indicators. Notably, operations were not reduced even after the blockade ended.

Although the story of Baladna’s inception and role during the blockade is well known, Baladna has a much more important place in Qatar’s food security strategy. The Qatari government has actively pursued improvements in food security, as outlined in the Qatar National Food Security Strategy 2018–2023. This document asserts the need for a robust food security approach given the nature of Qatar’s existence as a small state with climatic constraints on food production [25]. Notably, the document stresses the need for domestic self-sufficiency in food production. A key goal of Qatar’s food security strategy is to “ensure Qatar’s self-sufficiency in strategic commodities (i.e., perishables that Qatar can produce competitively) and shift production toward best practice technologies to drive yield improvement” [25] (p. 7).

Within this strategic framework, Baladna has thrived under Qatar’s new approach, emphasizing domestic growth and expanding exports since June 2019 [10]. While the desert environment presents challenges for raising cows, the company has adapted by housing cows indoors and maintaining a cooler temperature using cooling systems [10]. Although this model is resource-intensive, Baladna’s success has contributed significantly to Qatar’s dairy self-sufficiency and served as a model for overcoming the challenges posed by the 2017–2021 blockade.

Another key component of the food security strategy is building resilience. Specifically, the document states that it is important to be self-sufficient in key food categories, including dairy, and to build reserves and robust supply chains to guard against future supply shock scenarios [25]. Even as the blockade entered its third and fourth years in 2020 and 2021 and Qatar faced the dual challenges of both the ongoing blockade and the global COVID-19 pandemic, Baladna remained steadfast. In its 2020 annual report, reporting on its successes over the previous year, several prominent leaders in Baladna highlighted the company’s growth.

During 2020, Baladna exhibited exceptional resilience and success despite the challenges of the pandemic. The company has managed to maintain uninterrupted service to its customers and consumers thanks to its robust processes and dedicated workforce [26]. Baladna’s CEO Malcom Jordan highlighted the company’s continuous focus on product innovation and development, stating that “Product portfolio management remained paramount as Baladna continues to focus on introducing innovative and value accretive products” [26] (p. 19).

Baladna’s financial performance in 2020 reflected its operational success. The total revenue for the year reached QR 814.8 million, which was a significant increase from QR 486.2 million in 2019 [26]. EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at QR 322.5 million, with an EBITDA margin of 39.6%. The company also reported a net profit of QR 152.1 million, representing a 152.1% increase compared to 2019 [26]. Saifullah Khan, Baladna’s CFO, confirmed the company’s high profitability and asserted that these profit margins “validate our operational excellence and strategic financial planning” [26] (p. 21).

Baladna’s 2020 annual report cited several factors contributing to its success, including product innovation, market share gain, higher milk yield, efficiency measures, and cost control [26]. However, based on the available data, the relative influence and interdependence of these factors are unclear. The company’s product portfolio experienced growth of 40.7% in 2020 with the launch of 96 new SKUs and the delisting of 18 SKUs to optimize yield; Baladna’s emphasis on efficiency and cost control resulted in a 12.7% decrease in the cost of sales per unit and an 80% increase in the margin over material compared to the previous year [26].

Moreover, the company fortified its market position by entering new product segments with high profit margins, such as processed cheese, whipping/cooking cream, and long-life juice, which boosted revenue and profit margins [26]. Baladna also expanded its market presence by enhancing customer service levels, augmenting in-store visibility, and growing within the food services sector through close collaboration with strategic customers [26] (Figure 1).

3.2.3. Consolidation and Expansion: Baladna After the Blockade

At the beginning of 2021, the blockade that began in 2017 ended. This also ended the initial impetus behind Baladna’s growth. If Baladna grows, it could solidify its place within the market and as a pillar of Qatar’s food security strategy. Specifically, Baladna intends to concentrate on its successful core business by expanding its dairy and juice portfolio through innovation and experience and exploring opportunities to enter new product categories that align with its capabilities [26]. Baladna’s robust financial position and cash-generation capabilities allow it to lead significant projects and respond promptly to emerging opportunities [26].

In the 2021 Baladna annual report, Moutaz Al Khayyat, Baladna’s chairperson, highlighted how the company had managed to thrive despite the adverse impact of the COVID-19 pandemic on the global economy. Although the pandemic caused an estimated 19% contraction in Qatar’s retail market, Baladna recorded a 2% revenue growth compared with the previous year [27]. This growth was achieved by adapting to market conditions by introducing new product lines, growing its market share in existing segments through higher promotions and discount programs, and maintaining industry-leading profit margins. Baladna’s revenue growth was largely driven by cheese, cream, and juice sales [27].

Baladna’s commitment to its role in the nation’s food security and the Qatar Vision 2030 initiative is reflected in its domestic and international expansion, diversification, and contribution to the national economy [27]. Baladna achieved an EBITDA of QR 297 million and a net profit of QR 134 million with a 38% EBITDA margin and a 17% net profit margin. The company’s financial position is solid with strong cash flow generation and a net debt-to-total capital ratio of 39% [27]. Baladna has initiated various measures to mitigate risks and developed a comprehensive risk register that reflects its commitment to best practices and policies in line with local regulations and industry best practices [27].

Baladna’s operational efficiency is driven by its state-of-the-art facilities, full control over its integrated value chain, and continuous focus on product portfolio management and innovation. The company applies the latest technologies for milking and uses a high-tech manufacturing facility to improve business efficiency [27]. Baladna’s focus on partnerships and logistics has expanded its distribution network to cover the current Qatari retail and HoReCa (hotels, restaurants, and catering) markets, resulting in a lower sales cost per unit driven by an increase in volume [27].

Baladna’s strong financial standing and operational cash flow generation position it to invest in large-scale projects while expanding its current business into new categories and investing in growth opportunities. Building on its strong financial foundation established in 2021 and the diverse avenues available for diversification and expansion, Baladna targets favorable growth in revenue and profitability for the coming year [27]. As reported in the 2020 annual report, Baladna expects robust revenue and profitability growth during the 2022 FIFA World Cup and the second half of 2022. Strategic expansion and partnerships remain key to Baladna’s long-term growth [27] (Figure 1).

3.2.4. New Product Lines, Subsidiaries, and Exports

The expansion of Qatar’s dairy industry has led to the development of new dairy-related product lines and subsidiaries. Baladna’s rapid growth has enabled the company to diversify its product offerings and exports, contributing to the resilience of Qatar’s food supply. Moreover, the success of the dairy industry has inspired innovation in other sectors of Qatar’s food production system, further strengthening the nation’s food security.

According to the company’s 2021 annual report, Baladna successfully launched 44 new products under its primary Baladna brand and its value-Awafi line [27]. These new product offerings span various categories, including fresh dairy, long-term dairy and cream, cheese, and juice. This expansion of product offerings highlights the company’s strategic efforts to remain competitive and relevant in the evolving food and beverage landscape.

One key strategy adopted by Baladna was to increase market penetration by introducing juice products of various sizes under both the Baladna and Awafi brands [27]. Additionally, the company ventured into the coffee market by releasing Karak Latte and Espresso Latte products, capitalizing on impulse sales opportunities. This diversification of product offerings indicates Baladna’s commitment to satisfying a wide array of consumer needs and preferences.

New product development plays a vital role in the success and sustainability of Baladna’s business and supports national food security. As stated in its annual report, Baladna’s “New Product Development Program” is an integral part of the business. The company is managed by a highly experienced team of product experts with experience in leading regional and multinational food and beverage companies [27]. This strategic focus on innovation and product development ensures Baladna remains a frontrunner in the food industry, contributing to the overall food security and well-being of its target market.

The leadership of Baladna, especially its CEO, Malcolm Jordan, is confident about Baladna’s ability to compete within the market and build long-term brand strength. Jordan also noted that the government plays a positive role in this process, pointing out that Baladna is a publicly traded company on the Qatari stock exchange, and many Qatari citizens hold significant shares in the company [28]. Additionally, he acknowledges that the Qatari government has provided a favorable business environment to support local industries. This was established with particular conviction during the 2017–21 blockade but has continued and impacted various industries, not just the dairy sector [28].

The Qatari government has worked closely with local industries, such as Baladna, to achieve national food security goals that benefit both parties. To this end, Baladna is a significant player in Qatar’s food security program. It is strategically aligned with government policies and has a substantial market share. Government and semi-government entities hold approximately 27% of the company, which gives them some control over certain aspects of the business. Jordan described that Baladna’s internal strategies are logically linked to the goals of Qatar’s food security strategy, which, in the case of the dairy sector, aims to achieve self-sufficiency and long-term sustainability: what is good for Baladna is also good for Qatar [28] (Figure 1).

3.2.5. Supply Chains

A key aspect of Baladna’s emergence is the issue of supply chains and their relationship to Qatar’s overall food security. At the beginning of the 2017–21 blockade, Qatar swiftly established new supply chains in response to the crisis. The Qatari government, along with its sovereign wealth fund subsidiary Hassad Food, collaborated with partners in Iran and Turkey to secure alternative products [16]. While this approach proved effective in the initial phase following the blockade, Qatar’s sense of comfort remained limited due to uncertainty surrounding the blockade’s future progress, which left access to food imports in a precarious position. Baladna’s actions during the past few years are emblematic of Qatar’s handling of the challenge of severed supply chains.

More specifically, most of Qatar’s dairy products were imported before the blockade. The blockade created an urgent need to develop a local dairy industry for economic and food security reasons. Baladna’s establishment of a vertically integrated dairy farm and processing facility using the latest technology was a significant step toward achieving this goal. The company swiftly expanded its cow herd from 3400 at the beginning of the blockade to over 23,000 by 2021 [27], becoming the largest dairy farm in Qatar. Furthermore, Baladna diversified its product offerings to include milk, yogurt, cheese, and juice, meeting local demand and reducing its import reliance.

Baladna aggressively reduced reliance on external supply chains as much as possible to achieve this goal and established new supply chain interconnections with redundancies. The result is a robust and complex supply chain that ensures consistent production and product availability in the market. In a recent interview with Vedavyas Vemuri, General Manager—Baladna’s supply chain, several important points were discussed regarding the company’s supply chains.

One of the key aspects of Baladna’s supply chains is the management of raw materials for production. The company produces approximately 420 tons of milk daily, which is the primary raw material for its dairy products. Vemuri notes that cows are given the most nutritious meals, and their nutritional needs vary depending on whether they are lactating or young. The company sources a range of cow foodstuffs, including alfalfa, sugar beet pulp, and corn seed. Baladna’s focus on nutrition and quality control is highlighted by Vemuri, who stated, “We are very careful about them because they are our national precious” [29].

The company also has a robust transportation network managed by its fleet department, which handles the vehicles used on farms to transport cow feed and milk to the production facility. In addition, Baladna offers a diverse range of products with 254 offerings under the Baladna and Awafi brands. The company has 139 retail and HoReCa sales routes, indicating its distribution network scale.

Furthermore, Baladna’s supply chains are not limited to dairy products. As part of its diversification, the company acquired the E-Life Detergent business, indicating its willingness to explore new ventures. According to Vemuri, Baladna’s core strategy is “strengthening food security and self-sufficiency in Qatar” [29]. This highlights the company’s focus on ensuring the consistent production and availability of food products in the country, which is a vital aspect of national security.

From the perspective of Baladna’s leadership, a technical group within the company is responsible for designing the recipe and production process for each product and securing necessary supply chains. Supply chains are managed in a way that ensures quality and efficiency. Baladna also has strategies in place to manage variability in milk supply from the farm. CEO Malcom Jordan described how a technical group is responsible for designing various product recipes and the processes for its production and how this is handed over to manufacturing to use supply chains as efficiently as possible to achieve this goal (Figure 1).

3.2.6. Sustainability

Baladna has made significant strides in addressing sustainability and implementing technological advancements in its operations to ensure food security and self-sufficiency. By integrating sustainability, technology, and innovation into its operations, Baladna contributes to the development of Qatar’s dairy and agriculture sectors. Specifically, the interview highlights Baladna’s approach to sustainable food production, with a focus on climate-controlled facilities, production inputs, water conservation, and Qatar’s role in its food security strategy [30]. Although there are many ways in which Baladna can become more sustainable in its operations, several methods stand out: (1) climate-controlled facilities for production and storage, (2) production inputs and long-term sustainability, and (3) water conservation technologies and techniques. Each method was discussed in detail with Higgins during the interviews.

Baladna has implemented climate-controlled facilities in its dairy farm and processing plant to optimize production and ensure the highest quality of dairy products. These facilities allow for optimal temperature and humidity conditions, enabling cows to produce milk efficiently despite Qatar’s harsh desert climate [30]. Additionally, climate-controlled storage ensures that dairy products maintain their freshness and quality during transportation and storage, reducing waste and contributing to overall sustainability.

Baladna has adopted a long-term sustainability approach to its production inputs, focusing on minimizing the environmental impact of its operations [30]. This includes the implementation of sustainable farming practices, such as rotational grazing and integrated pest management. Baladna also uses renewable energy sources, such as solar power, to reduce its carbon footprint. Furthermore, the company invests in research and development to identify new methods of improving efficiency and reducing waste in the production process [30].

Baladna prioritizes the use of water conservation technologies and techniques in its dairy and agriculture operations because of Qatar’s water scarcity [30]. The company employs advanced irrigation systems, such as drip irrigation and hydroponics, which minimize water usage while ensuring optimal plant growth. In addition, Baladna invested in a water treatment plant, thereby reducing its overall water consumption by 50% [30]. Similarly, as mentioned by Higgins, Al-Marri highlighted Baladna’s proactive operation in sustainably supporting operations. Specifically, Al-Marri stated that the country is also adopting modern irrigation technologies such as dripping systems and opting for closed (protected) farming instead of open-air farming [21].

The company also turns animal waste into compost, reducing its carbon emissions by 30,000 tons of equivalent CO₂ per year [30]. This practice reduces a company’s environmental impact and earns carbon credits that can be sold to other businesses. As Baladna expands to other countries, it explores climate-smart solutions, such as biodigesters and solar panels, to further reduce its environmental impact [30].

Baladna’s goal is to set the gold standard for sustainable, fully integrated dairy farming by continuously improving efficiencies and reducing energy consumption [30]. In line with this vision, Baladna is in talks with companies in the US and the UK to potentially grow animal feed using vertical farming, although the technology is not quite there yet [30]. Higgins also called for the Qatari government to introduce more regulations and requirements for sustainability reporting to encourage environmental awareness and sustainable practices in the country [30] (Figure 1).

The stability pillar of food security is instructive in terms of providing a conceptualization of both achievements and challenges in Qatar’s dairy sector development. While Qatar’s approach has demonstrated resilience during the blockade and COVID-19 pandemic, it is understandable that long-term stability faces several challenges. Key factors in this regard include the sector’s reliance on government support, vulnerability to climate change impacts, and dependence on imported good such as animal feed.

The food sovereignty pillar adds another important perspective to Qatar’s dairy sector development. Although the public–private partnership model has successfully enhanced national control over dairy production, a broader sector development remains a challenge. In this regard, Baladna can be regarded as a national champion, yet the concentration of production in a single large-scale operator, whilst efficient, can also be understood as potentially limiting opportunities for smaller-scale producers and community involvement in dairy sector development. However, Baladna’s public listing on the Qatar Stock Exchange does provide a mechanism for citizen participation through share ownership. Therefore, in the context of Qatar’s state capitalist developmental state approach, coupled with its national size context, this approach can be understood as offering a unique model of community stake-holding in food security infrastructure.

4. Conclusions

This case study analyzes Qatar’s rapid development in the dairy sector to achieve self-sufficiency through the Baladna dairy company, which is the nation’s leading dairy company. The 2017–21 blockade spurred Qatar to enhance its food security by building indigenous capacity to produce essential commodities like dairy. The Qatari government partnered with Baladna to establish a robust dairy farm and processing facility, leveraging internationally recognized best practices. This collaboration enabled the production of milk and other dairy products at a scale that meets domestic demand, thus reinforcing food security.

The theoretical insights from the five-pillars of the food security framework, coupled with the political economy insights from Qatar’s developmental state context, has provided insights into the comprehensiveness of Qatar’s approach to dairy sector development. It has been identified that while achievements in availability, access, and utilization are substantial, challenges exist in ensuring long-term stability and enhancing food sovereignty. Overall, this experience suggests that when countries adopt a developmental state model, environmental constraints can be mitigated through a strategic approach to developing food security infrastructure through public–private partnerships. In this regards, Qatar’s case provides valuable insights for other Gulf states facing similar climatic challenges. It also offers insights into balancing efficiency with broader societal participation and long-term sustainability.

The public–private collaboration between Qatar and Baladna positively impacted the expansion of the Qatari dairy industry, as seen in Baladna’s rapid growth and operational success. Following the blockade, Baladna achieved consolidation and expansion, developing new product lines, subsidiaries, and exports. This synergy strengthened supply chains, further solidifying the company’s role in meeting the nation’s food security goals.

However, Baladna’s dependence on government support raises concerns about long-term sustainability. As subsidies diminish, the company must focus on operational efficiency, value chain integration, and diversification into other food markets to remain competitive. The replicability of this model in other countries may be limited, particularly outside petro-developmental economies, where state support is less prevalent. However, the company’s commitment to sustainability is evident in its continuous investments in innovative technologies, such as solar energy, water treatment, and waste management, which are essential for sustainable operations.

Interviews with Dr. Masoud J. Al-Marri, senior leadership at Baladna, and the internal documents confirm the strategic alignment between government policy and business strategy under Qatar’s developmental model. Policies like the Qatar National Food Security Strategy 2018–2023, and measures such as facilitating land acquisition and responding swiftly to the blockade, reflect the government’s active role in shaping economic development. However, Baladna remains an independent company with its own leadership, which aligns national security goals with sound business principles. This comprehensive approach has allowed Qatar’s dairy sector to meet 100% of its local demand without imports.

Qatar’s experience demonstrates how resource-rich countries can foster private sector growth and improve supply security through public–private partnerships. Nevertheless, balancing government intervention with market dynamics remains a challenge, especially when shifting from state-backed success to a sustainable market-driven model. Further research into partnerships across other GCC countries could provide insights into different approaches to food security. This study is limited in scope, focusing only on Qatar and Baladna, and it may not reflect the full range of developmental strategies across the region. Qatar’s experience with Baladna offers valuable lessons on how public–private collaboration can strengthen food security and promote private sector growth.