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Oman ready to start OMR100 million poultry project

Oman ready to start OMR100 million poultry project

MUSCAT: Oman government has started the process of setting up a huge capital investment of OMR100 million poultry project, with active equity participation from private sector. The new project will be promoted by state-owned Oman Food Investment Holding Company.

Oman Food Investment Holding is being established by the government to invest in food security projects, which focus on import substitution and rural development.

The poultry project is part of a major initiative to achieve self-sufficiency in poultry meat, which is partly met by way of imports.

Oman Food Investment has invited A’Saffa Foods, the largest integrated poultry project in Oman, to take 20 per cent stake in the proposed poultry project, which has a capital base of OMR50 million.

The board of A’Saffa Foods approved the same on Monday to take a maximum of 20 per cent equity in the proposed OMR50 million joint venture firm for manufacturing poultry meat in Oman. The new company, which is under formation, will be a closely held entity.

Sources said that the government has short-listed two to three locations for the mega poultry venture and a final decision on the location will be made soon.

The project is aimed at achieving self-sufficiency in poultry production and a portion of the production may be for export.

A’Saffa Foods board has approved another proposal to establish a limited liability company for manufacturing organic waste and fertiliser production, which is obtained from residue of poultry farms.

The project, which will have a maximum capital of OMR2 million, will be either a partnership venture or an independent company and the project will come up near A’Saffa’s existing farms in Thumrait. Presently, the company sells residue of poultry farms in raw form.

A’Saffa Foods has achieved a 9.1 per cent growth in consolidated sales revenue at OMR23.38 million for the first nine months of this year, while consolidated net profit was up by 6.2 per cent at OMR5.35 million during the period under review.