Times of Oman
Mazoon awards OMR28m contract to build Oman's biggest dairy project
September 25, 2017 | 5:39 PM
by A E JAMES/[email protected]
The construction will start from October at the project site located in Al Sunaynah, Buraimi, and will be completed in the third quarter of 2018. - Picture by Shabin E/Times of Oman
 
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Muscat: Mazoon Dairy Company, which is building the Sultanate’s biggest dairy project in Buraimi, has awarded a main construction work to Al Adrak Trading and Contracting.

The construction will start from October at the project site located in Al Sunaynah, Buraimi, and will be completed in the third quarter of 2018. The value of the contract is OMR27.9 million and the overall project cost is estimated at OMR100 million.

The scope of work include construction of main dairy farm, feeding centre, milking parlous, staff accommodation, office buildings, utilities and connecting roads.

Starting from an initial herd of 4,000 Holstein-Friesian cows, the farm will have 25,000 cattle by 2026. The company anticipates that the first of the initial phase of 4,000 cows will start arriving at the farm in early 2018, while the project will start production by the third quarter of 2018.



“Today’s announcement marks the most important step yet in our plans to develop a truly world-class centre of excellence for the dairy manufacturing industry in Oman,” said Mazoon Dairy Company Chairman Dr. Rashid Al Masroori. The agreement was signed by Dr Al Masroori with Dr. Thomas Alexander, chief executive officer of Al Adrak Trading and Contracting.

“Our products will help to ensure a healthier nation and support the Sultanate become almost self-sufficient in the provision of dairy products in the next decade. We undertook a comprehensive selection process for our main construction partner and are confident that Al Adrak will ensure the quality our facility needs as we move towards nourishing the nation in the future,” added Dr Al Masroori.

By 2026, Oman’s production of dairy imports will fall nearly 10 per cent from the present 70 per cent and Mazoon Dairy will also be exporting its high quality dairy products to regional GCC markets. “Presently, almost 30 per cent of dairy products are manufactured locally and 70 per cent is imported. Every year, there is a growth of around 5 per cent in demand. Mazoon Dairy will capture 60 per cent of the market after ten years to become the leader,” said Dr. Arjun Subramanian, general manager, projects of Mazoon Dairy Company.

Backed by the Oman Food Investment Company alongside government pension and investment funds, Mazoon Dairy will provide quality home produced dairy and juice products.

Mazoon Dairy’s product range will cover a diverse mix of dairy and juice products, including milk, yoghurt, laban, cheese, ice cream and juices. The company intends to make its full product range available from the launch – a unique achievement for a large-scale project of this kind in the Gulf region.

The project will be funded by way of OMR50 million equity and OMR50 million loan. The loan is fully provided by Oman Arab Bank.

“We are proud to have been awarded the contract to develop one of the most ambitious food production projects undertaken in Oman. The project is set to become a landmark development of its kind in the wider region and become a quality benchmark for others to follow in the future,” Dr Alexander said.

Starting from an initial herd of 4,000 Holstein-Friesian cows, the herd strength will eventually grow to 25,000 by 2026. By then it is planned that production levels will mean dairy imports to Oman would fall to nearly 10 per cent from the present 70 per cent and Mazoon Dairy will also be exporting its high quality dairy products to regional GCC markets.

“Initiating the construction of main works is another major project millstone and reaching this stage was possible through the able guidance of members of the Board. We extend our appreciation and gratitude to all those who have supported our project since day one including the government entities,” Dr. Subramanian added.

The selection of land has undergone various tests in ensuring the suitability of water, soil and the environment before deciding on Al Sunaynah as the best location that provided the most comfortable environment for the cows.

Within 10 years of operations it is anticipated that over 70 per cent of the 2,300 employees at Mazoon Dairy will be Omani nationals – creating a huge boost for local employment opportunities and attracting talent from across the Sultanate. The company plans to take 3,00 Omanis next year.

Mazoon Dairy will also further enhance Oman’s reputation as a centre of regional excellence in food manufacturing and exports. Thereby playing a major role in enhancing food security for the nation.

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