August 24, 2016

The Oman Food Investment Holding Company (OFIC) established the Mazoon Dairy Company in the first half of 2015 to facilitate a major US$260 million dairy project with the goal of achieving self-sufficiency in dairy production in Oman.

The project will include the construction of a vertically integrated dairy farm and production facility with an initial capacity of 4,000 cows in 2017, with a planned expansion to 25,000 cows by 2026, according to OFIC. Total output is expected to be 202 million liters by 2026 and 985 million liters by 2040 with the result of reducing Oman’s dependency on dairy imports from 69 percent in 2014 to 13 percent by 2026, with the possibility of Oman become a net exporter of dairy products by 2040. The planned facility will also produce fresh juice, mineral water, laban and yogurt, according to Trade Arabia.

To achieve these goals, Mazoon Dairy has a capital outlay of OMR100 million (US$260 million) with a debt to equity ratio of 50:50, and with the OFIC contributing 20% to the joint venture.

Advancing the development of the project, Mazoon Dairy has issued a tender for qualified local companies to bid for the contract to develop the farm, processing plant, offices, accommodation, and associated facilities on 1,500 hectares in Buraimi.

With a total budget of US$620 million, the OFIC will also be overseeing major poultry and beef projects in the country. Currently, Oman gets 70 percent of its poultry supply and 80% of its red meat supply from imports – percentages that are targeted for significant reduction in the coming years.

“We need to increase it to more than 50 percent in the future. Our objective is to invest in projects that will ensure food security for the country,” Food Processing-Technology reports OFIC chief of follow-up and studies, Salim bin Saif Al Abdali told the Times of Oman

The country is also making strides in gaining self-sufficiency in seafood production. As part of its effort to drive the development of a successful aquaculture industry, Oman is planning its first land-based fish farming operation through the establishment of a bio-marine industrial cluster in Sur. Shumookh Investment & Services, the investment arm of PEIE is backing the venture and will hold a 10 percent stake in the project in partnership with Knowledge Advance Technology (Kat), while local investor Advance Business Solutions will hold the remaining 90 percent.

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Lynda Kiernan