Four food projects coming up in Oman

Muscat: Dr Rashid bin Salim Al Masrouri, chairman of Oman Food Investment Holding Company said it is implementing four major ventures at a cost of OMR270 million. The ventures are expected to improve food security and economic diversification in the Sultanate.
In a statement, he said that that the four projects will start production in the next three years, one by one. The major investors in these ventures are investment and pension funds.
Mazoon Dairy and A’Namma Poultry Company were recently established, in addition to a project to collect and manufacture dairy products in the Governorate of Dhofar. A project for red meat is expected to be unveiled soon.
He said that Oman Food Investment has promoted Mazoon Dairy to undertake the flagship dairy project for Oman. The project, which will be set up in the wilayat of Al Sanina in the Governorate of Al Buraimi, has a capital outlay of OMR100 million with a debt equity mix of 50:50. Oman Food Investment’s contribution in the equity is 20 per cent.
The farm will start with 4,000 cows in 2017, which will grow to a herd size of 25,000 in 2026. The project is expected to commence in 2015 with commercial production expected in 2017.The company will produce approximately 202 million litres in 2026 and 985 million litres in 2040. This, along with an increase in existing production and the new milk collection scheme being promoted, will reduce the import dependency from 69 per cent in 2014 to 13 per cent in 2026.
Net Imports (Imports-Exports) could be negative in 2040 allowing Oman to become a net exporter of dairy products.
“Oman Food Investment has also promoted A’Namma Poultry project with a capital outlay of OMR100 million. The debt equity mix in the project is 50:50 and OFIC’s contribution is 20 per cent of equity. The project would be state-of-the-art using the latest technology and imported equipment and processes creating a benchmark for other players to follow. This is expected to improve the overall technology, and efficiency levels in the poultry industry in Oman,” he said.
The project starts from hatchery to distribution and will produce 60,000 tonnes of white meat in 2020.The project, combined with existing producers, will drive the self-sufficiency of Oman in the poultry sector from the current 36 per cent to 70 per cent in 2030.
The project plans to employ approximately 735 employees at full capacity with an Omanisation ratio of 35 per cent.
“The dairy production collection and manufacturing project in the Governorate of Dhofar is expected to produce 90,000 litres per day. The project will include milk collection points, coolers and milk a processing plant. The project is expected to cover 6.7 per cent of the local demand for milk and generate job opportunities for Omanis. Besides, the project will provide a healthy environment for enforcing the Grazing Law and preserving the environment, he continued.
As for the red meat project in Dhofar, which is expected to cost more than OMR40 million, he said that the procedures to procure land forthe project have been completed. The project would involve capital expenditure, both inside and outside Oman, in buildings, cattle, goat, and sheep ranches, in addition to slaughterhouses and cold storage/freezing and packing units. The ultimate vision is to generate anoutput of 55,000 MT/year.
The objective of the project is to increase Oman’s control of its red meat from 20 per cent to 52 per cent by investing in Omani-controlled production facilities in Africa and Oman. The project aims also at importing live animals and ensuringtheir availability at the local markets. The Al Bashair Meat Company will be opened in March 2016.
The fully state-owned Oman Food Investment Holding, which has been established in 2012, is the investment arm of the government in food security through local and foreign investments in food projects.