Oman Food to acquire land for OMR37m red meat project in Thumrait

Business Saturday 17/December/2016 17:57 PM
By: Times News Service
Oman Food to acquire land for OMR37m red meat project in Thumrait

Muscat: Oman Food Investment Holding Company, which is developing a major OMR37 million-red meat project jointly with Oman National Livestock Development Company, is in the process of acquiring land for the proposed project at Thumrait in Dhofar region.
Planning stage
“We are in the planning stage. Land is to be acquired soon in Thumrait and water drilling permit will also be acquired,” Saleh M Al Shanfari, chief executive officer of the Oman Food Investment Holding, told the Times of Oman.
New joint venture
The new joint venture, called Al Bashayer Meat Co, will import livestock, fatten them, slaughter in a state-of-the-art abattoir to offer as branded quality red meat to the retail and institutional customers in Oman and other potential export markets.
“Animals will be imported from various countries.” While the major import of livestock is expected from Africa (Ethiopia, Somalia and Sudan), the joint venture firm will also ensure alternate sources for livestock purchase to tide over any exigencies. Of the Sultanate of Oman’s red meat requirement, 80 per cent is met through imports, and the project aims at reducing imports by enhancingdomestic availability.
Improving food security
The project also aims at improving food security, food safety and capitalise on the niche business opportunity to provide reliable, high quality branded red meat in Oman.
Al Bashayar will set up a state-of-the-art abattoir with the best infrastructure for production and processing of wholesome meat.
Al Shanfari said the red meat project is part of three major projects now under different stages of planning and implementation, which are aimed at achieving self-sufficiency in local production or for import substitution. The other two are a dairy and a poultry project, which are in the execution stage as tenders have been floated. Water drillings have already been completed for these two ventures. The dairy project is coming up at AlSunainain Buraimi governorate, while poultry project is taking shape in Ibri. Presently, Oman’s 70-80 per cent demand for dairy and poultry meat is met through imports.
“By 2019, all the three projects will start operations,” added Al Shanfari. These projects will enable the Sultanate to substantially reduce its dependence on imported products in a phased manner.
OMR240m investment
The combined investment of these three strategic government projects is estimated at OMR240 million.
Oman Food Investment will have a 20 per cent equity stake in these three projects, while the remaining 80 per cent investment will come from the private sector, including investment funds and investment holding firms.