Dr. Rashid bin Salim al-Masrouri , Chairman of Oman Food Investment Holding Company (OFIC) said that the company is implementing four major ventures at a cost of RO270 million. The ventures are expected to enhance food security and economic diversification in the Sultanate.
In a statement to Oman News Agency (ONA) , 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 Co and A’Namma Poultry Co 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 added that Oman Food Investment Holding Company has promoted Mazoon Dairy Co (SAOC) 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 RO100 Million with a Debt Equity mix of 50:50. OFIC’s contribution in the equity is 20%.
The farm will start with approximately 4000 cows in 2017, which will grow to a herd size of 25,000 cows in 2026. The project is expected to commence in 2015 with a commercial production expected in 2017.The company will produce approximately 202 Million liters in 2026 & 985 Million liters in 2040. This, along with increase in existing production and the new milk collection scheme being promoted, will reduce the import dependency from 69% in 2014 to 13% in 2026.
Net Imports (Imports- Exports) could be negative in 2040 allowing Oman to become a net exporter of dairy products.
He added that ‘ OFIC has also promoted A’Namma Poultry Co. (S.A.O.C) project with a capital outlay of RO100 Million. The debt equity mix in the project is 50:50 and OFIC’s contribution is 20% of equity. The project would be a state-of-the-art project 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.
The project starts from hatchery to distribution and will produce 60,000 tons 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% to 70 % in 2030.
The project plans to employ approximately 735 staff at full capacity with an Omanization ratio of 35%.
‘ The dairy production collection and manufacture project in the Governorate of Dhofar is expected to produce 90,000 liters per day. The project will include milk collection point, coolers and milk processing plant. The project is expected to cover 6.7% of the local demand for milk and generate job opportunities for Omanis. Besides , the project will provide the healthy environment for enforcing Grazing Law and preserving environment, he continued.
As for the red meat project in Dhofar, which is expected to cost more than RO40 million , he said that the procedures to get the land of the project have been completed. The project would involve capital expenditure, both inside/outside Oman, in buildings, cattle, goat, and sheep ranches, slaughterhouses and cold storage / freezing & packing units. The ultimate vision is to generate the output of 55,000 MT / year. The objective of the project is to increase Oman’s control of its red meat from 20% to 52% by investing in Omani-controlled production facilities in Africa and Oman. The project aims also at importing live animals and ensure their availability at the local markets. The establishment of Al Bashair Meat Company will be unveiled during March 2016.
It should be noted that the fully state-owned Oman Food Investment Holding, which is established in 2012, is the investment arm of the government in food security through local and foreign investments in food projects.