Construction work on Mazoon Dairy to start on Wednesday
October 17, 2017 | 5:45 PM
by Times News Service
Eng. Saleh Al Shanfari. - Times picture

Muscat: Work on the Sultanate’s biggest dairy project, which is being promoted by the Mazoon Dairy Company, will start in Buraimi on Wednesday.

Mazoon Dairy signed a OMR27.8 million-construction contract with Al Adrak Trading and Contracting for building the project last month, which has an estimated capital expenditure of OMR100 million. The scope of work includes construction of main dairy farm, feeding centre, milking parlours, staff accommodation, office buildings, utilities and connecting roads.

The main construction package will be followed by other packages, which include a processing plant, equipment, milking plant, parlour, cooling systems and other ancillary facilities, said Eng. Saleh Al Shanfari, chief executive officer of Oman Food Investment Holding Company. “The project is on track so far.”

Starting with 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.

Al Shanfari said the major mobilization work for the construction will start now, which will allow the company to develop facilities in parallel. The project will also push self-sufficiency in dairy products from 31 per cent in 2014 to 87 per cent in 2026. Mazoon Dairy will produce 200,000 tonnes of milk and milk products by 2026.

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

It’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 time of 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 as equity and an OMR50 million loan. The loan is fully provided by Oman Arab Bank.

Within a decade of operations it is anticipated that over 7 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 hire 300 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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